As Visa continues towards its goal of digitally enabling 50 million small and micro businesses (Mypes), a new research study, the “Visa Back to Business Global Study 2022 SMB Outlook“, revealed that 90% of the Mypes surveyed said they are optimistic about the future of their businesses, which represents the highest level of optimism registered to date of all the studies carried out on Visa Global Back to Business.
While sanitizing food and quarantining mail may be things of the past from a previous pandemic, some changes like increased use of digital payments are here to stay: 82% of Mypes respondents said they will accept digital options in 2022 and almost half (46%) of consumers surveyed expect to use digital payments more often this year, while only 4% say they will use them less.
“Payments are no longer simply about completing a sale. It is about creating a simple and safe experience that reflects the brand itself in all channels and provides utility for both the business and its customers”, he said. Xiko da Rocha Campos, senior vice president of Merchants and Acquirers for Visa Latin America and the Caribbean.
The digital capabilities that small businesses developed during the coronavirus (COVID-19) pandemic, from contactless payments to e-commerce, helped them survive, and by continuing to build on this foundation, it can help them find new growth. and prosperity”.
According to this year’s study, which surveyed small business owners and consumers in nine markets: Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, United Arab Emirates, and the United States (USA), the agreed perspective for 2022 is one of optimism and the intention to go digital even more:
Other relevant results on the way forward in 2022 for Mypes
2022 brings with it optimism and confidence: Based on the 90% of Mypes that declare themselves optimistic about the future of their businesses, 54% saw last year as an opportunity and report that their business is doing well for this new year, unlike 46% who said the same during the summer of 2021.
Expanding digital payments, including cryptocurrencies: An impressive 82% of the MSMEs surveyed said that they plan to accept some type of digital payment in 2022, and 73% consider that accepting new forms of payment is essential for the growth of their business. Of those surveyed, 24% said they plan to accept digital currencies like Bitcoin.
E-commerce driven companies: Of small businesses with an online presence, 90% agreed that their survival during the pandemic was due to increased efforts to sell through e-commerce, reporting that, on average, more than half of their revenue ( 52%) came from online channels in the last three months.
Leaving change: Most of the Mypes surveyed expect their business to change and depend exclusively on digital payments in the future. While 64% of respondents anticipate being able to make this change within 10 years, 41% say it could be within the next two years, and 18% are out of cash.
Consumers set the tone in 2022
Accelerating towards a digital future: More than half of consumers surveyed (53%) said they expect to switch to cashless in the next 10 years, 25% said it will happen in the next two years, and 16% already only use digital payments. The top benefits of relying more on digital payments among surveyed consumers were: Easier online shopping (47%), lower risk of theft (38%) and convenience (37%).
Abandoned Shopping Carts in Real Life (IRL): Not offering digital payments is often a deal breaker. 41% of surveyed consumers say they have abandoned a physical store purchase because digital payments were not accepted, and younger shoppers are even more likely to do so. Gen Z (59%) and Millennials (55%) have not bought something because there was no way to pay digitally, significantly more than Gen X (38%) or Boomers (19%).
Consumers embrace the global market: As small businesses look to reach more customers online, 50% plan to increase cross-border sales in 2022. On average, 68% of consumers responded that they are comfortable buying items or services from a business in another country or territory. Of those not completely comfortable, 57% mentioned that fraud protection typically offered by their credit or debit card provider (such as Visa’s zero liability policy) makes them feel more comfortable with international trade .
Digitally enabling 50 million small businesses
Since the pandemic began, Visa has launched a variety of community programs to help more small businesses accept digital payments and gain greater access to the digital economy.
As part of this ongoing commitment, Visa also announced today that it has helped digitally enable 24.8 million MSMEs worldwide, or 50% of the multi-year goal it set in 2020 to digitize 50 million Mypes.
Throughout 2022, Visa will continue to provide resources that support small businesses.
More information about the programs Visa has made available to micro and small businesses can be found at the Small Business Visa Center and on the Small Business Visa COVID-19 Pandemic Assistance site.