Affirm has published results of its first Small Business Sentiment Survey revealing how small businesses are coping with a tougher economy, yet still looking forward to growth. The survey also emphasizes the rising significance of Buy Now Pay Later solutions, as businesses look for new ways to win customers, boost confidence and stay competitive.
The evidence shows that a number of SMEs now consider having the option to pay over time as essential to business today and that a wider availability of BNPL may enhance opportunities for and benefits to both merchants and consumers.
“Small businesses are the backbone of the American economy, and this survey makes clear that they are resilient, ambitious, and always looking for an edge,” said Pat Suh, SVP of Revenue at Affirm. “Nearly 70% told us BNPL acts as a stamp of approval in the eyes of their customers, signaling credibility at checkout and helping bring in new shoppers. This puts a premium on transparency and trust, which is exactly what small businesses are looking for in a partner as they work to stand out and grow.”
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Small Businesses Remain Optimistic Despite Economic Pressures
As per the survey, as high as 90% owners of small business organizations were confident about their business for next 12 months and 65% experienced high confidence against the past year. Despite this optimism, there are increasing financial worries.
Cost increases to operate the business ranked as a significant issue for 86% of respondents and competing with larger businesses 61%.
Indicate that small firms are investing in increasing customer acquisition, operational efficiencies and long-term growth.
BNPL Becomes a Competitive Advantage for Small Businesses
The survey revealed that flexible payment options are playing an increasingly important role in helping smaller businesses compete with larger retailers.
Around 70% of respondents said BNPL solutions help attract new customers, while 66% reported that flexible payments improve their ability to compete with larger companies. Among businesses already offering BNPL services, both figures climbed to 92%, highlighting strong satisfaction among current users.
In addition to driving sales, many respondents also associated BNPL with stronger customer confidence and trust. Approximately 68% of surveyed business owners said offering BNPL at checkout serves as a “stamp of approval” for consumers.
The study further showed that 61% of respondents believe customers who use BNPL are practicing responsible financial planning, reflecting a broader shift in how installment-based payment options are perceived.
Bipartisan Support Emerges for Expanded BNPL Access
Other definitive evidence of public support was the recognition of widespread bipartisan support for extending small businesses increased access to flexible payments tools.
Over two-thirds of respondents, (67.8%), reported that they would be more inclined to support lawmakers supporting for more widespread use of BNPL services. Support was demographically and politically diverse, with 72% of Republicans and 74% of Democrats in support of more flexible payment options.
Views regarding responsible financial use of BNPL also remained consistent across political affiliations, with approximately two-thirds of both Republican and Democratic business owners describing BNPL as a practical and responsible financial management tool.
“Small businesses across the country are asking for the same thing: a fair shot,” said John Pitts, Vice President for Government Relations, Public Affairs, and Social Impact. “76% of small business owners support expanding access to flexible payment tools like BNPL. It’s not an ideological issue, it’s a Main Street issue. It’s about whether local businesses have access to the tools they need to serve customers and stay competitive.”
Transparency and Trust Continue to Drive Merchant Preferences
Transparency emerged as one of the most important factors influencing small business decisions when selecting BNPL providers. More than half of respondents identified clear fees and transparent terms as the most valuable qualities in a payment partner.
The survey also found that 72% of respondents trust Affirm to operate fairly and transparently. Among businesses already using Affirm, that figure increased significantly to 95%.
“We’ve built Affirm around the principles of transparency, no late fees, and fair treatment for consumers,” said Suh. “Small and medium-sized businesses—which make up 95% of Affirm’s merchant base—are clear about wanting access to flexible, transparent pay-over-time tools. We believe that trust is earned through simple, honest products that help both merchants and consumers succeed.”
