Smaller British companies have fallen behind customers, regarding their online commerce, a new study has found.

Payment network PayPoint have released the results of a survey showing that 27 per cent of small and medium enterprises have not yet made the transition to online trading.

Meanwhile 70 per cent of UK consumers have made a purchase over the internet.

This is despite all of those SME's questioned responding that online retail is a significant part of their business ambitions.

The world wide web is becoming more important for smaller businesses, as it offers them much greater scope with regards to customer contact than could be accomplished physically.

Among the reasons stated for not being involved in e-retail, include the risks of fraud, while 57 per cent claim there would be little point as customers would be unable to locate them.