Visa Back to Business global study: small businesses who embraced digital commerce and cross-border sales have weathered the pandemic better

Visa Back to Business global study: small businesses who embraced digital commerce and cross-border sales have weathered the pandemic better

• New Visa research shows how essential digital capabilities are for SMBs to compete in a post pandemic world
• Amidst record rise of entrepreneurism, a new class of digitally-native small businesses emerge

(PRESS RELEASE) LONDON, 16-Sep-2021 — /EuropaWire/ — Visa (NYSE: V), an American multinational payments technology company,  has announced the release of its 5th edition of the Visa Back to Business global study. The study finds that 68% of consumers say COVID-19 has permanently changed how they will pay. The company has helped to digitally-enable an estimated 16 million small and micro businesses (SMBs) worldwide, or just over 30% of the multi-year goal it set in 2020 to digitise 50 million SMBs. Since the start of the pandemic, Visa has launched community-based initiatives across the UK and worldwide, to help more small businesses accept digital payments and gain greater access to the digital economy.

“With a 19-month view into the pandemic, we’ve seen that small businesses who embraced digital commerce and cross-border sales have weathered the pandemic better,” said Mary Kay Bowman, global head of buyer, seller, core and platform products, Visa. “But it’s no longer just about pivoting and surviving. We’re now seeing a hopeful surge in entrepreneurship, and as we march toward our goal of 50 million, we’re helping a new breed of business owner come online as digitally-native for the first time.”

Visa Back to Business Study: A Global Pulse on Payment Preferences

The Visa Back to Business global research study has surveyed SMB owners and their customers since the onset of the global pandemic. With an extensive body of sentiment data accumulated through five editions, findings from the newest study highlight the economic opportunity that lies in connecting SMBs, communities and technology:

• SMBs Still Working to Meet Consumer Expectations: The pandemic has dramatically increased consumers’ concern with touching cash and payment readers and correspondingly, increased the desire to tap to pay¹. Seventy-four (74%) percent of SMBs around the world expect customers will continue to prefer contactless payments as much as, or more than they do now, with two in five (40%) SMBs citing contactless among the top investments needed to meet customer expectations.
• Contactless as a Competitive Edge: Stores that don’t accept contactless payments could run an increased risk of losing customers as a result. More than two in five (44%) consumers say they wouldn’t shop at a store that only offers payment methods that require contact with a cashier or shared device. Previous research from Visa also found that, of the UK small businesses surveyed which were confident of bouncing back from the pandemic, two thirds (67%) said that their in-store experience for customers has improved due to the acceptance contactless and digital payments.²
• Prioritising Online Security: Many SMBs surveyed said the shift presented new challenges with the top concerns cited as data privacy and security (33%), cost to invest in digital infrastructure (31%) and having less of a personal connection with customers (30%).
• Opportunity Knocks for New, Digitally-Savvy SMBs: While 54% of SMBs say the past year has been a challenge for their business, 46% have viewed it as an opportunity, up from 38% in November 2020. Among those who saw 2020 as an opportunity, their focus has been on new products (37%) and expanding their sales channels (34%), with 23% having started a completely new business.

Unlocking Access to the Digital Economy

Recognising that greater digitisation of commerce can bring enormous benefits to small businesses, Visa seeks to bring increased digital equity and inclusivity to the world through its multi-year commitment to digitally enable 50 million SMBs.

In the UK, Visa is working closely with its network of industry, technology and community partners to digitally enable small businesses impacted by pandemic. Among them, Visa’s support of ShopAppy.com at the beginning of the pandemic helped to achieve an 166% increase in merchants signing up to the e-commerce platform and 168 towns registered, up from 29 towns before the partnership³. Meanwhile, Visa’s backing of Totally Locally’s Fiver Fest resulted in 68% of participating businesses seeing an increase in footfall and three in five (62%) seeing an increase in sales⁴.

Visa will continue to celebrate the expansive role SMBs play within local communities and the global economy, starting with the launch of a new digital series today, “Voices of Access,” featuring SMB customers from around the world sharing their unique stories and empowering others to see the possibilities of the digital economy.

More information on the initiatives Visa has made available to small and micro businesses is available on the Visa Small Business Hub and the Visa Small Business COVID-19 support site.

¹Source: US Contactless Online Research Study April 2020

²Source: Visa Fiver Fest research amongst UK SMBs, May 2021

³ShopAppy, 2020

⁴Totally Locally, 2020

Methodology: Visa Back to Business Study

The Visa Back to Business Study: 5^th Edition, was conducted by Wakefield Research between June 15-28, 2021, among 2,250 small business owners at companies with 100 employees or fewer in Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, United Arab Emirates and United States. The consumer portion surveyed 1,000 adults ages 18+ in the U.S., and 500 adults ages 18+ in Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore and United Arab Emirates.

About Visa Inc.

Visa is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device. As the world moves from analogue to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit our website (www.visa.co.uk), blog (https://www.visa.co.uk/visa-everywhere/blog.html), and @VisaUK.

Media contact:

europeanmedia@visa.com
+44 (0)20 7795 5336

SOURCE: Visa