Several of my most prosperous clients began with a solitary, little sale to a single federal agency. They were able to build on this initial transaction, offer a notably superior product or service, and grow from there, adhering to the adage that "the first sale is usually the hardest."

Due to the existence of the federal government's SmartPay system, which functions similarly to a credit card, these small sales are possible. This SmartPay technology helps with larger transactions, and enables federal purchasers (from more than 300 agencies) to make micropurchases of up to $10,000.

A company is automatically taken through the GSA SmartPay card acceptance process with the federal government as part of the GSA Schedule process. This lets federal purchasers know that the vendors on the GSA Schedule system will make it simple for them to utilize SmartPay (or their government credit cards) when they make purchases from those vendors. The SmartPay card resembles your typical master card quite a bit.

How Big is SmartPay Spending?

The SmartPay system processes a large volume of transactions from federal agencies each year, amounting to over $21B. The agency's SmartPay card spending, as well as the total number of transactions, are shown below:

SmartPay Transaction Size

The average transaction amount made with a SmartPay card has increased to $1,297. Government retailers benefit from the size of SmartPay card transactions because it is larger than the US eCommerce benchmark for non-governmental orders, which is between $70 and $130 per transaction.

Most Common SmartPay Product Purchases

• Medical, Hospital Equipment and Supplies
• Industrial Supplies
• Training
• Office Supplies

Most Common SmartPay Service Purchases

• Janitorial, Cleaning and Maintenance 
• Protection and Security Services
• Engineering, and Environmental Services

GSA Schedule Holder Advantage

SmartPay is set up for GSA Schedule Holders as part of the schedule process. Because they are aware that GSA Schedule holders accept SmartPay, federal purchasers turn to them first when making purchases.

If you would like to take advantage of the many things that being a GSA Schedule Holder brings to the table, I always recommend contacting an industry expert such as Advance GSA. They are adept at determining eligibility, and then guiding prospective businesses through the process, and do not charge for an initial consultation.