Visa Study Shows Significant Shift to Digital Commerce Amid COVID-19

Visa Study Shows Significant Shift to Digital Commerce Amid COVID-19

by 19. August 2020

Visa published its global Back to Business study assessing the shift to digital commerce in response to the pandemic, driven largely by changing consumer expectations for a safe and contactless payment method. As small and micro businesses (SMBs) continue to endure the financial impact of COVID-19, rethinking the checkout or point-of-sale (POS) experience is essential for survival.

Consumers Now Expect Digital-First Commerce

According to the study, 9 out of 10 consumers in the UAE (90%) have changed how they pay for purchases due to COVID-19, including shopping online when possible (59%) and using contactless payments (52%).

Contactless payments have become a driving differentiator. Nearly all (90%, compared to 63% globally) UAE consumers said they would switch to buying from a store that installed contactless payment systems. In fact, almost three in four (72%, compared to 48% globally) UAE consumers wouldn’t shop at a store that only offers payment methods that require contact with a cashier or other shared devices.

Despite the unpredictable nature of the pandemic, nearly all (94%, compared to 67% globally) SMBs in the UAE are beginning to feel optimistic about the future of their business but estimate it will be about six months before their businesses are back to full operation.

Small Businesses Take Action, Amidst Real Challenges

SMBs in the UAE have shown an incredible willingness to evolve in the face of change. In fact, 94% of SMBs in the UAE, compared to 67% globally, have pivoted to keep their businesses on track since the outbreak. Over two in five (44%, compared to 20% globally) have allowed contactless payments for the first time since the start of COVID-19.

Additionally, nearly three in five (59%, compared to 33% of global SMBs) reported that their business has accepted less or stopped accepting cash during the pandemic.

Despite their willingness to adapt to new trends, 92% of merchants in the UAE still have concerns about shifting their business online or increasing online presence (compared to 74% globally), highlighting the need for additional support to help them transition to digital payments.

Small Business Report Findings

 

In terms of business operations, SMBs in the UAE are most concerned about data privacy and security (48%, compared to 32% globally), as well as keeping their employees safe and healthy (48%, compared to 27% globally). An overwhelming majority (89%) of UAE consumers, compared to two-thirds (67%) of consumers globally, are taking measures to keep their payment cards secure.

Shahebaz Khan

Shahebaz Khan

“Historically, we have seen behaviour change at the point of sale as a gradual shift over time. But COVID-19 has created an immediate need for safer, more efficient shopping experiences both online and offline as consumers rapidly migrate to digital commerce. We want small businesses to know that Visa is here to help them navigate these new consumer needs and gain insights to make their businesses stronger both now and in the long run.”

said Shahebaz Khan, Visa’s General Manager for the UAE.

 

Featured image credit: Card photo created by rawpixel.com – www.freepik.com

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