Small and medium businesses need to jump on to the mobile payments bandwagon in order
to gain a competitive edge over larger firms.
A recent survey conducted by US-based financial services corporation Visa, indicates that
customers worldwide prefer to pay with credit cards or mobile devices. According to the
survey titled Digital Transformations of SMBs: The Future of Commerce, 52% of consumers
would prefer to shop online if possible. Over 80% of consumers mention that digital benefits,
such as customer loyalty programmes and easy-browsing websites, are motivating factors
when deciding where to shop.
The survey included responses from 425 business and nearly 2,500 consumers.
Visa reveals that 78% of consumers prefer to avoid cash if mobile payments or credit card
payments are available. Steven Leitman, VP of global payment experience and solutions,
Visa says “The survey results show a growing gap between small, local businesses and
consumer preferences, which are inclined towards digitisation and the convenience offered
by online shopping.”
Larger enterprises often have no problems switching over to mobile payments or offering a
variety of online options that make the digital experience better for consumers. But for
smaller businesses—and especially local businesses— adapting to newer technologies is a
challenge due to scale and resources available.
Recent trends point toward increased digitisation of payments in the future. In fact, 61% of
surveyed customers reported that they planned to increase the amount of purchases they make online over the next five years. SMBs stand to lose a significant amount of business if they don’t make the switch.