SMB Company Plastiq Releases April Data on SMB Spending Trends Amidst COVID Crisis

SMB payments company Plastiq just released new data insights on which SMB industries and segments were hit hardest by COVID-19 in April, where demand for goods and services saw the biggest upticks, and which payment categories saw the biggest reductions.

Plastiq is bridging the gap for many SMBs, who are in crisis mode as they await disbursement of already-secured loans or an answer on whether their PPP applications have been approved. By enabling SMBs to instantly pay any bill with their existing credit cards, Plastiq frees up 30-45 days of cash flow and allows them to reduce costs and protect their cash reserves.

Now, let's take a look at the recorded SMB spending trends in April. 

April SMB Spending Trends During the COVID-19 Crisis

**all data is compared to January numbers

National

●      Average SMB spending was reduced by 21% in April due to reduced business activities from shelter-in-place orders, and Plastiq has also seen an uptick in questions regarding what bills can be put on credit. Several payment categories have seen a significant reduction in payment volume, with construction & maintenance seeing a 71% decline and commercial rent seeing a 31% decline.

●      However, some industries – such as healthcare, food/beverage and wholesale/distribution – have seen an increase in payment volume made through Plastiq in April (48% increase in payment volume in healthcare; 45% increase in payment volume in food/beverage; 31% increase in payment volume in wholesale/distribution).

●      Plastiq saw a spike in new SMB activations in April from the food/beverage (22% increase) and hotel/restaurant/leisure (146% increase) industries (January activations vs. April activations).

●      81% of Plastiq’s SMB users continued to leverage Plastiq during this difficult and uncertain time.

East Coast

●      Several payment categories have seen a significant reduction in payment volume, with construction & maintenance seeing a 54% decline as projects come to a halt and commercial rent seeing a 33% decline as SMBs struggle to make rent payments and prioritize other expenses.

●      However, some industries – such as healthcare, wholesale/distribution, education and food/beverage – saw an increase in payment volume made through Plastiq in April (282% increase in payment volume in healthcare; 56% increase in payment volume in wholesale/distribution; 34% increase in payment volume in education; 10% increase in payment volume in food/beverage).

●        In addition, payment volume in the cars/boats/trucks/planes category saw a 14% increase, potentially due to a need for alternate transportation options as locals decrease their use of public transportation due to fear of disease.

●      Plastiq has seen a spike in new East Coast SMB activations, with the biggest activation growth coming from the construction (29% increase) and eCommerce (7% increase) industries (January activations vs. March activations). In eCommerce, this is likely due to needing to rapidly increase stock to meet increased online shopping demands as US consumers minimize their in-person purchases.

West Coast

●      Several payment categories have seen a significant reduction in payment volume, with construction & maintenance seeing an 88% decline as projects come to a halt and commercial rent seeing a 64% decline as SMBs struggle to make rent payments and prioritize other expenses.

●      However, some industries – such as eCommerce, food/beverage, and wholesale/distribution – have seen an increase in payment volume made through Plastiq in April (65% increase in payment volume in eCommerce; 113% increase in payment volume in food/beverage; 113% increase in payment volume in wholesale/distribution).

Midwest

●      Several payment categories have seen a significant reduction in payment volume, with construction & maintenance seeing a 26% decline as projects came to a halt and commercial rent seeing a 21% decline as SMBs struggle to make rent payments and prioritize other expenses.

●      However, some industries – such as transportation – have seen an increase in payment volume made through Plastiq inApril (11% increase in payment volume in transportation).

Northeast

●      Several payment categories have seen a significant reduction in payment volume, with commercial rent seeing a 23% decline as SMBs struggle to make rent payments and prioritize other expenses and general inventory and utilities seeing a 70% and 50% decline, respectively, as businesses have been forced to close their doors. Construction & maintenance also saw a 59% decline.

●      However, some industries – such as wholesale/distribution – have seen an increase in payment volume made through Plastiq in April (33% increase in payment volume in wholesale/distribution).

●        In addition, payment volume in the cars/boats/trucks/planes category saw a 34% increase, potentially due to a need for alternate transportation options as locals decrease their use of public transportation due to fear of disease.

●      Plastiq has seen a spike in SMB activations from the professional services sector in the Northeast (5% increase - January activations vs. April activations). 

South

●      Several payment categories have seen a significant reduction in payment volume, with commercial rent seeing a 69% decline as SMBs struggle to make rent payments and prioritize other expenses.

●      However, some industries – such as eCommerce, healthcare, education and wholesale/distribution – have seen an increase in payment volume made through Plastiq in April (70% increase in payment volume in eCommerce; 30% increase in payment volume in healthcare; 14% increase in payment volume in education; 217% increase in payment volume in wholesale/distribution).

●      The general inventory payment category also saw an increase of 97% in payment volume.

West

●      Several payment categories saw a significant reduction in payment volume, with commercial rent seeing a 20% decline as SMBs struggled to make rent payments and prioritize other expenses and a  92% decline in construction & maintenance as construction work ground to a halt due to SIP orders.

●      However, some industries – such as eCommerce, food/beverage, and wholesale/distribution – saw an increase in payment volume made through Plastiq in April (11% increase in payment volume in eCommerce; 120% increase in food/beverage; 99% increase in payment volume in wholesale/distribution).