A recent study conducted by card network company Visa has found that as small and medium-sized businesses pursue international expansion, they are also looking to introduce new payment tools. The research reveals that these businesses are envisioning a cashless future and are investing in payment technology as part of their growth strategies. A survey of 2,250 small businesses and 1,500 consumers conducted by Visa showed that 35% of business owners surveyed admitted they needed to improve their business and are considering accepting new payment formats. About 95% of small business owners plan to go cashless in the future, with 51% expecting to do so within the next two years.
According to Jenni Mundy, Global Head of Acquiring at Visa, small and medium-sized businesses that have already adopted digital payment technology in recent years have shown to be more resilient and competitive compared to those that have not. Visa is interested in digitizing corporate payment schemes and the COVID-19 pandemic has accelerated the trend of increasing digital payments. Approximately eight in 10 business owners say they are expanding into new markets to drive growth. Some measures that business owners expect to boost growth include increasing their social media presence, offering new products or services, and increasing marketing investment.
Visa’s research indicates that the shift towards acceptance of new payment technologies is driven by changes in consumer behavior. More than half of the consumers surveyed said they expected to increase their use of digital payments in the coming year. Factors driving consumers to adopt cashless technology include convenience, speed, and the ability to track spending. However, integrating new payment forms into operations may present challenges for small and medium-sized businesses, such as cost, lack of training, and security concerns.
Visa’s previous research has shown that small and medium-sized businesses are looking to accept digital payments for further growth. Last year, a study by Visa revealed that 82% of small businesses planned to accept digital payment options. This aligns with the decline in cash usage and the decrease in the number of ATMs. However, lawmakers are considering bills that would prohibit businesses from refusing to accept cash for in-person transactions. The bills aim to prevent discrimination against dependent unbanked or underbanked Americans.
In conclusion, small and medium-sized businesses are actively pursuing international expansion and are investing in new payment tools to support their growth strategies. The shift towards accepting new payment technologies is driven by changes in consumer behavior and the convenience and benefits these technologies offer. However, businesses may face challenges in integrating these new payment forms into their operations.