New research from 1,000 consumers and over 200 small business owners finds payment friction is a hidden tax on growing U.S. businesses, costing them customers, capital, and time they can’t get back.
TEMPE, Ariz., June 9, 2026 /PRNewswire/ — More than half (55%) of consumers say they would stop or seriously reconsider shopping at a local business after one bad payment experience. However, most of the small business owners serving them don’t think their setup has ever cost them a thing.
Flute, the payments platform for the everyday economy, today released “The Visibility Problem: What It Costs When Payments Won’t Get Out of the Way,” a survey of 1,000 U.S. consumers and 200 small business owners. The report finds that payment friction is a hidden tax on the growing businesses powering the everyday economy, costing them customers, capital and time they can’t get back.
New data finds payment friction is a hidden tax on growing U.S. businesses, costing them customers, capital and time.
Running a small business today means juggling inventory, staff, rent and growth often as the only person managing it all. More than one-third of owners juggle two or more separate platforms just to manage payments and finances, creating a tangle of tools and logins and adding friction to a process that should be seamless.
Payments are quietly costing merchants on three fronts: customers who walk away, capital they can’t access and time they don’t have. Flute’s report findings include:
- Customers: 44% of consumers say a faster, smoother checkout would make them spend more at a local business. 93% say upfront pricing matters, and 61% weigh flexible payment options when deciding where to shop. The time of payment determines whether they come back. However, 38% of small business owners say their setup has probably or definitely cost them a sale.
- Capital: 40% of small business owners needed additional cash in the past year to cover an expense or pursue growth. 54% reached for personal savings or a personal credit card. Just 7% turned to their payment processor, the company already handling every dollar they earn.
- Time: Payments are eating hours owners don’t have. 52% spend at least an hour every week reconciling statements and chasing disputes. More than a third run two or more systems, toggling between platforms to get a complete picture of their own business. 36% have postponed payroll, inventory or rent waiting for funds to arrive. The fix owners want most is speed: 37% say instant or same-day funding would make their business more profitable or efficient, ahead of every other capability tested.
Flute addresses each directly. Growing businesses get same-day payouts, working capital personalized based on each merchant’s transaction history and a single platform that replaces the patchwork most owners are managing today.
Every delayed payment has a ripple effect. Customers walk away, sales stall and business owners scramble to cover expenses from personal funds. That’s why speed matters at every step. Fast checkout keeps consumers coming back, and timely deposits keep businesses running smoothly.
“The wrong payments provider can quietly hold a business back,” said Derek Dean, CEO of Flute. “The real cost isn’t always visible, but it affects every decision owners make. Growing businesses are silently paying the cost of being ignored. What they need are tools that give them control, speed and clarity so they can focus on serving customers and building momentum. That’s what Flute is here to provide.”
Recently, Aurora Payments rebranded as Flute to build for the everyday economy, the growing businesses that have spent years choosing between processors that overcharge them and tools that were never made for how they work, without the friction:
- A single dashboard that brings payments, deposits and reporting together in one view, so owners can see exactly where their business stands without toggling between systems.
- Same-day payouts and working capital tied to real transaction history, so a delayed deposit never becomes a missed payroll.
- Built-in invoicing, recurring billing and dispute resolution, so the hours owners spend chasing statements go back to running the business.
Read the full report and learn more at www.flute.com.
Methodology
Flute commissioned independent surveys to assess the real-world impact of payment friction on both small business owners and consumers in the everyday economy.
The industry survey was conducted by 200 U.S. small business owners, including self-employed respondents, at companies with 0-500 employees. The research explored how small business owners chose their current payment provider, the operational burden of managing payments, and the business impact of issues such as payment fraud, delayed funding, fee visibility, reconciliation and customer checkout friction.
The consumer survey was conducted by Dynata among a nationally representative sample of 1,000 U.S. adults. The survey explored checkout friction, payment preferences, unexpected fees, flexible payment options and how payment experiences influence consumer confidence, especially for higher-value purchases. Participants were drawn from Dynata’s proprietary, first-party panel of verified, opt-in respondents.
Both surveys were fielded in May 2026.
About Flute
Flute is the payments platform for the everyday economy. Backed by Corsair Capital, Flute gives growing businesses the financial tools to run their operations efficiently, without the headaches or the price tag. Learn more at flute.com.
Media Contact
Tanner Garza
PANBlast for Flute
flute@panblastpr.com
SOURCE Flute