Global fin-services company, Visa, recently issued the “Visa Global Back to Business Study – 2022 SMB Outlook” – the sixth edition in this series of annual studies on growth projections among 50 million small and micro businesses (SMBs) enabled in their network.
The study found that 90% said they are optimistic about the future of their businesses – the highest level of optimism in the Visa Global Back to Business studies to-date.
Changes wrought by the COVID-19 pandemic, such as increased use of digital payments, will remain: 82% of SMBs surveyed said they will accept digital options in 2022 and nearly half (46%) of consumers expect to use digital payments more often, with just 4% saying they will use them less.
The key findings in this year’s study, encompassing a survey of small business owners and consumers in nine specific markets – namely Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, United Arab Emirates, and the United States – reflect optimism and greater digitisation:
- 54% the 90% of optimistic SMBs saw last year as an opportunity and said their business was doing well into the new year
- 82% of SMBs plan to accept new forms of payment to keep up with their business growth, while 24% plan to accept digital currencies, like crypto Bitcoin
- 90% of businesses with a digital presence agreed that e-commerce was vital to their survival, and 52% of their revenue was derived from online channels in the last three months
- Majority of SMBs surveyed see their businesses relying on digital payments in the future (41% believe this shift to take place in the next two years; 64% believe they can do this within the next 10 years; while 18% are already cashless)
Meanwhile, on the consumer front…
- 53% of consumers eye a shift to a cashless future in the next 10 years: 25% believe it will occur in the next two years, while 16% are already exclusively using digital payments
- 41% said they have actually abandoned a purchase in a physical store that did not accept digital payments: 59% of Gen Z and 55% of millennials have refrained from buying something because there was no digital payment option
- 68% of consumers are comfortable purchasing products or services from a business in another country or territory, while of those that were not totally comfortable, 57% said that fraud protection offered by their credit or debit card provider (e.g., Visa’s Zero Liability Policy), helps them breathe easier with international commerce
Since the pandemic started, Visa has successfully introduced several community-based programs to allow SMBs accept digital payments, thus gain more access to both their local and global economies.
Jeni Mundy, Global Head Merchant Sales & Acquiring at Visa, said: “Payments are no longer about simply completing a sale. It’s about creating a simple and secure experience that reflects one’s brand across channels and provides utility to both the business and its customer.”
“The digital capabilities that small businesses built up during the pandemic – from contactless to e-commerce – helped them pivot and survive and, by continuing to build on this foundation, can now help them find new growth and thrive,” she added.
Visa has also announced that it has digitally enabled 24.8 million SMBs worldwide, which is 50% of the multi-year goal the company set in 2020 to digitize 50 million SMBs.
Throughout 2022, Visa continued to provide resources that support small businesses.
These include the $1 million Grants for Growth program, with Uber and Local Initiatives Support Corporation (LISC). Through this program, 100 merchants received $10,000 grants, disaster recovery and resiliency guides from Uber and LISC, and placement in the Uber Eats app.
Grants for Growth is supported and managed by LISC and focuses on local Uber Eats restaurants in 10 cities: Atlanta, Boston Chicago, Detroit, Los Angeles, Miami, New York/New Jersey, Philadelphia, San Francisco Bay Area and Washington D.C.
