Visa and a consortium of industry organizations have released Digital Transformation of SMBs: The Future of Commerce, a look at the opportunities and challenges faced by small and medium size business owners in an increasingly digital world.
The report provides a snapshot of how SMBs can capture revenue opportunities through digital loyalty programs, online storefronts and, of course, digital payments.
“One immediate opportunity for SMBs to go digital is by digitizing checkout and other business processes,” a Visa press release said.
The company offered three survey findings in support of SMBs’ transition to digital payments:
- Based on survey responses, Visa estimates that the SMB’s average cost of processing digital payments — inclusive of direct expenses and labor costs — is 57 percent less than that of nondigital payments.
- Further, 65 percent of SMBs agree that customers spend more when they use cards versus cash.
- 78 percent of consumers surveyed rank a digital payment method, such as paying with a card or mobile device, as their number one preferred payment option.
According to the release, the report offers actionable tips that business owners can use to implement technology and digital upgrades and grow their business.
Maru/Matchbox, a consumer intelligence firm, surveyed 425 businesses representing business payment decision makers and nearly 2,500 consumers in 2018 to develop the Maru/Matchbox 2018 Small Business and Consumer Surveys. ESI ThoughtLab, an economics consultancy firm, collaborated with Visa to develop equations that enable the cost analysis to realize the impact of digital versus non-digital payments.