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Visa Study: Small Businesses Optimistic, Looking to Digital Payments for Growth in New Year

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As Visa (NYSE:V) continues to achieve its goal of digitally empowering 50 million small and micro businesses (SMBs), a new research study released today – the “Visa Global Back to Business Study – 2022 SMB Outlook” – finds that 90% of Small and medium businesses surveyed They said they are optimistic about the future of their business, the highest level of optimism in the Visa Global Back to Business studies to date. While grocery erasure and post-quarantine may be a thing of the past for an earlier pandemic era, some changes — such as the increased use of digital payments — are here to stay: 82% of surveyed SMEs said they would accept digital options in 2022 and nearly half (46 (%) of consumers surveyed2 Expect digital payments to be used a lot in 2022, with only 4% saying they would use them less.

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Payments are no longer simply about completing a sale. “It’s about creating a simple and secure experience that reflects the individual’s brand across channels and delivers a benefit to both the company and its customers,” said Jenny Mundy, Visa’s global head of sales and acquisitions. “The digital capabilities small businesses have built during the pandemic — from offline to e-commerce — has helped them pivot and survive, and by continuing to build on that foundation, they can now be helped to find and thrive on new growth.”

According to this year’s study, which surveyed small business owners and consumers in nine markets — Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, the United Arab Emirates and the United States — the consensus forecast for 2022 is one of optimism and intent. To digitize more:

The way forward in 2022 for small and medium businesses

  • 2022 kicks off with optimism and confidence: Based on the 90% of SMEs surveyed who were optimistic about their future, 54% saw the last year as an opportunity and stated that their business was doing well with the new year approaching, up from 46% who said the same during the summer of 2021.3
  • Going Digital Payments – Even Cryptocurrencies: overwhelming 82% of SMEs surveyed said they plan to accept some form of digital options in 2022 and 73% see accepting new forms of payments as key to their business growth. Of those surveyed, 24% said they plan to accept digital currencies such as the cryptocurrency Bitcoin.
  • Enhanced E-Commerce Business: Among the small businesses surveyed with an online presence, 90% agreed that their survival during the pandemic was due to increased efforts to sell via e-commerce, and reported that more than half (52%) of their revenue, on average, came from online channels. Internet in the last three months.
  • Leave change: The majority of SME respondents expect their business to shift exclusively to digital payments in the future. While 64% of survey respondents expect to be able to make this shift within 10 years, 41% say it could be within the next two years – and 18% are already cashless.

Consumers are setting the tone in 2022

  • Accelerating towards a digital future: More than half of consumers surveyed (53%) answered that they expect to switch to cashless within the next 10 years, 25% said it will happen in the next two years and 16% already use digital payments only. The top benefits of relying more on digital payments among consumers surveyed were easier online shopping (47%), followed by lower risks of theft (38%) and convenience (37%).
  • Abandoned shopping carts in real life (IRL): Failure to offer digital payment is often a deal breaker – 41% of consumers surveyed said they had abandoned a purchase in a physical store because digital payments were not accepted, and younger shoppers are more likely to do so. Gen Z (59%) and Millennials (55%) bought nothing because there was no way to pay digitally, much 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 answered that they are comfortable purchasing goods or services from a business in another country or territory. Among those who do not feel completely comfortable, 57% say that fraud protection offered by a credit or debit card provider, such as Visa’s no-liability policy, makes them more comfortable in international trade.

Digitally Empowering 50 Million Small Businesses

Since the start of the pandemic, 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 to digitally empower 24.8 million SMEs worldwide, or 50% of the multi-year goal it set in 2020 to digitize 50 million SMEs.

Throughout 2022, Visa will continue to provide resources that support small businesses, such as the $1 million Grants for Growth program announced earlier this week with Uber and Local Initatives Support Corporation (LISC). Through the Grants for Growth program, 100 merchants will receive $10,000 in grants, disaster recovery and resilience guidance from Uber and LISC, and placement in the Uber Eats app. Grants for Growth will be supported and managed by LISC and focus 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. Learn more for information on how to apply for Grants for Growth, please visit lisc.org/uber.

More information about the programs that Visa makes available to small and micro businesses can also be found on the Visa Small Business Hub and the Visa Small Business COVID-19 Support Site.

METHODOLOGY: BACK TO BUSINESS STUDY VISA

Wakefield Research conducted a Visa Back to Business study in December 2021 and surveyed 2,250 small business owners with 100 or fewer employees in Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, the United Arab Emirates and the United States. The Consumer Division surveyed 1,000 adults over 18 in the United States, and 500 adults over 18 in Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore and the United Arab Emirates.

About Visa Inc.

Visa (NYSE:V) is a global leader in digital payments, facilitating more than 215 billion payment transactions between consumers, merchants, financial institutions, and government agencies in more than 200 countries and territories each year. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone, everywhere, lift everyone up, everywhere and see access as the foundation for the future of money movement. Learn more at Visa.com.

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1 Unless otherwise noted, the percentages cited are the average of SME respondents in all nine markets: Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, the United Arab Emirates, and the United States.

2 Unless otherwise noted, the percentages cited are averages from consumer respondents in all nine markets: Brazil, Canada, Germany, Hong Kong, Ireland, Russia, Singapore, the United Arab Emirates, and the United States.

3 Global Business Study Return Visa, 5y Edition, page 6

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