Payment integration prepares service businesses for rapid growth
December 18, 2013

Integrated payment systems can help small and mid-sized businesses in the services industry continue many of the growth trends of the past year.

According to the "2012 Service Annual Survey," which was released by the U.S. Census Bureau, total revenue in a large majority of service categories in the U.S. economy experienced a substantial increase in revenue between 2011 and 2012. For example, transportation and warehousing firms generated $781.2 billion worth of income in 2012, which is 5.3 percent higher than the previous year. Finance and insurance companies also reported a 3.4 percent jump in revenue during the same time period.

The release of the Census Bureau report complements other recent data compiled by the financial research firm Markit that shows the U.S. private sector is on a clear path for growth in the near future. Reuters said the company's Purchasing Managers Index, which represents a weighted average of productivity indices in the manufacturing and service sectors of the economy, was 56.2 in December. While that number is unchanged compared to November, any reading above 50 suggests industry-wide expansion.

"Firms have become increasingly optimistic about the outlook, especially because inflows of new work are rising at one of the fastest rates seen since 2009," Chris Williamson, chief economist at Markit, told Reuters.

Investing in payment integration in the early days of economic improvements is a smart idea for small and mid-sized businesses. Managers in the services industry in particular can benefit from technology that makes it easier to organize financial information in a secure, flexible location. As many of these firms begin processing payments from multiple channels, a streamlined, user-friendly interface can make all the difference in preparing for long-term growth.

Nexus: G-WEBCD3