AN online shopping “blindspot” could be costing Scottish businesses billions of pounds, according to research.

A study by PayPal found that by not accepting online payments on websites, small businesses are losing out on sales and falling behind peers.

Despite 42% of Scots buying on mobiles at least once a week, there was a vast gap between consumer expectations and what was being offered.

While 91% of UK small businesses with mobile websites felt they offered a good experience, only 37% of Scottish consumers agreed.

In Scotland, just a quarter of small businesses had a website accepting mobile payment, with the number offering a mobile-friendly site lower still.

There was an increase in consumer confidence when spending on mobile. The research found that Scottish consumers were willing to spend almost £107 in an average mobile transaction, which is £5 more than the UK figure.

For UK consumers as a whole, 22% said they preferred shopping on their mobile to the high street – which has more than doubled since 2016.

Nicola Longfield, director of small business at PayPal UK, said: “With people increasingly shopping on their mobile phones, small businesses need to wake up to the fact that there is still a large gap between what customers want, and what they are receiving.

“If websites remain difficult to use, small businesses will simply miss out on sales.

“There are relatively easy fixes that business owners can make to get more mobile sales.

“For instance, offering mobile-friendly payment options like PayPal, so that customers don’t have to enter lengthy card details, and formatting websites for scrolling without needing to zoom in can make a huge difference.”

PayPal’s research also suggested habits would continue to move fast in this direction, which just under a third (30%) expecting to shop on mobile more often in the next year.

Consumers cited speed of use as a key factor in choosing mobile devices as their preferred option for online shopping.