Research has been conducted as part of Remitly and Visa’s The Future of Digital Remittance campaign, which revealed that digital transformation is reshaping the global economy.
A Visa survey found that 59% of small businesses are either already employing digital payments or planning to exclusively use such methods. Additionally, over 70% believe that embracing digital payments is crucial to their company’s growth.
The number of global merchant outlets accepting card payments is projected to reach 100 million by the end of 2025, growing from 74.5 million in 2019. This rise has been propelled by the surge in contactless payments during the pandemic. The total transaction value from digital payments is expected to grow by an average of 13.3% year-on-year, leading to a projected market value of over $15.1 trillion.
Digital payment solutions are vital investments globally, particularly during economic uncertainty, as they allow businesses to engage with a wide range of demographics.
There is a clear change happening in consumer purchasing behaviour, both online and in-store, as consumers look to digital payments as their preferred payment method. However, one-third of consumers’ personal spending is still done using cash or checks, so it’s important that businesses recognise that the transition is still underway.
Here are some considerations for businesses as we prepare for a digital-first economy.
- Offer a range of payment solutions – If you’re encouraging your customers to transition to digital payments, consider offering a range of payment solutions, such as mobile apps and online bank transfers. Whether your business relies on face-to-face, online, or over-the-phone transactions, it’s a good idea to accept a range of payment options. There are a variety of payment solutions available for businesses to take advantage of – it’s about finding the right solutions for your customers.
- Manage financial records – Completing accurate financial records can be incredibly demanding, with multiple cash flows to consider. Digital payment solutions can make this process significantly easier with automated bookkeeping alongside live data tracking and insights, making your data work more efficiently.
- Invest in suitable digital payment software – There is a wide variety of digital payment solutions available to businesses, which can provide all sorts of logistical support to companies. Safety is a key feature to consider when choosing digital payment software, as data breaches can be damaging to your company.
- Avoid limiting customers to card-only payments – Refusing to accept cash altogether can prevent some consumers from making purchases and can significantly impact profitability in the long run. It can also prevent your business from expanding further, as it can limit your target audience by excluding certain age groups.
- Make sure your customer base is ready – Communication is always key when introducing changes to your target customer base. Taking the time to inform consumers of potential risks and benefits protects your company against lost revenue and slow consumer adoption.