• News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Well Being
  • Marketing
  • HR & Recruitment
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
Twitter LinkedIn YouTube
Trending
  • Are You Ready For The Day When Mental Health & Welbeing Is A Legal Requirement At Work?
  • Document Management Company Celebrating Award Success For Third Consecutive Year
  • Podcast advertising: A lesser-known secret to marketing success
  • 7 effective tips for achieving a better work-life balance as a self-employed professional
  • Education and Culture: Tools against workplace stress
  • Ensuring Ethical AI Practices Tailored to Your Industry’s Needs
  • European Business Lenders Forecast Spiralling Fraud Rates
  • Autumn Statement sparks SME hope, but there is more work to be done
Twitter LinkedIn YouTube
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing
  • Marketing
  • HR & Recruitment
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
You are at:Home»News»Visa vs. Amazon – what does it mean for small business?

Visa vs. Amazon – what does it mean for small business?

0
By sme-admin on January 4, 2022 Finance, News

David MaiseyTime is ticking down to the day that Amazon will stop accepting Visa credit cards in the UK. Come January 19th, the retailer is to scrap payments from Visa credit cards due to the high fees it says the card provider places on transactions. Whatever their opinion of Amazon, many retailers of all sizes will no doubt be keeping a close watch. Card processing fees can make a sizeable dent in earnings and with Amazon questioning Visa’s rates, many others will be thinking about what this could mean for payments more widely. Recovering from lost earnings during the pandemic, and new guidance likely to hurt takings further, any additional revenue small businesses can keep will make a real difference to their long-term prospects.

What might we expect next?

For either company to back down now will be very problematic. If Amazon renege on their promise, then it will not have achieved its goal of getting lower processing fees, while also confusing its customers. If Visa back down, then you can be sure other retailers and small business consortiums will be asking for their own reductions.

Looking at what the options are for Amazon, I expect it will likely be offering its own alternative account-to-account payment solution soon. If it does, this will be a big step in revolutionising payments and offering more choices to both retailers and UK consumers. Data from Omdia highlights how big a trend this is set to become, with it being a top open banking priority for card issuers and acquirers.

For smaller retailers, including those selling via Amazon, this will be good news. Account-to-account payments (A2A) operate with significantly lower processing fees and guarantee payment is available immediately in a business’ account, as opposed to the multiple days or potentially weeks that it can take with card payments. Customers benefit as well. They now have other ways of paying. More progressive retailers should even consider incentivising customers to switch to A2A payments by passing some of the savings on to consumers through discounts or additional loyalty points.

Is this the end for card payments?

Payment is a crucial part of the retail process which has for a long-time revolved around card providers and the fees they charge. Even the arrival of mobile payments did not disrupt card processing in quite the same way A2A payments will. However, it’s vital to remember that account-to-account payments will not replace cards overnight. Far from it. According to UK Finance, while overall card payments in 2020 declined, their share of payments increased with over half (52%) of all payments being made by cards that year. The continued mindshare cards enjoy amongst consumers will ensure their survival and continuation as a complementary payment system to other options entering the space.

But we should view Amazon’s move as the catalyst for broader changes in the payment space. Amazon’s intent shows it is firing the starting gun on a race for new payment methods. I expect this turn of events will be seen as kicking off much broader change to come in the payments space.

The good news is that the technology exists for retailers of all sizes to offer new payment methods. Working with the MultiPay Group, many existing Android payment terminals can already take new alternative payment methods like instant payments. With just a quick software update they are ready to go. For the consumer, it’s just as easy. Instant payment can be done by a mobile app that reads a QR code generated by the merchant device. Once scanned, this triggers the payment, which goes directly to the retailer’s bank account, without any card fees being charged.

However, it won’t just be the retailers that have the best technology that succeed. The all-around service is equally important, and payments must work 24/7/365. Working with a payment provider that understands this and offers a couture service tailored to a business’s unique needs will be what wins out.

The new year will certainly be an interesting time in the payments space. Although increasingly stringent COVID guidance needs to be navigated, UK consumer spending is showing resilience. At a time when it matters most for business, Amazon is shining a light on an alternative payments future that could give a better deal for retailers.

Author: David Maisey, CEO at MultiPay Global Solutions

David is a highly experienced entrepreneur with an extensive, proven and successful track record in the Card Payments industry having previously founded Chip & PIN Solutions in 2004.

Having grown the Company organically into a one of the most successful and recognised payments organisations in the UK, with customers across Europe, David navigated the Company through a successful acquisition in 2017, to an International Payment Processor and card issuer.

Blue-chip companies such as Sharp Electronics, Flybe, Liverpool Football Club, Pizza Hut, the AA, Virgin Trains, Domino’s Pizza, Toyota UK and Weight Watchers all selected Chip & PIN Solutions as their preferred payments partner.

Prior to establishing Chip & PIN Solutions, David built his experience working for blue- chip companies including Alcatel, Xerox and Dun & Bradstreet.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Document Management Company Celebrating Award Success For Third Consecutive Year

Podcast advertising: A lesser-known secret to marketing success

European Business Lenders Forecast Spiralling Fraud Rates

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting

The Newsletter

Join our mailing list to receive the latest news and updates from SMEToday
Read our Latest Newsletter:

Sign Up
Events Calendar
    • Marketing
    November 24, 2023

    Ten Red Flags to Look for When Hiring a Marketing Agency in 2024

    November 13, 2023

    The Power of a Name – Expert Tips for Naming Your Business

    • Finance
    November 29, 2023

    European Business Lenders Forecast Spiralling Fraud Rates

    November 27, 2023

    Autumn Statement sparks SME hope, but there is more work to be done

    Protean Inbound Marketing
    • Health & Safety
    November 21, 2023

    Fire Safety: How to Protect Your Business With 5 Simple Steps

    September 5, 2023

    The Importance of Preventing Falls in the Workplace

    Discover Maximizer
    Discover Maximiser
    • Events
    November 15, 2023

    The Great Christmas Raffle Raising Vital Funds For Charities

    September 28, 2023

    Brighton Half Marathon Youth Races Returning in 2024

    • Community
    November 17, 2023

    Cherishers 811 CIC Wins Bronze & Silver Stevie® Award In 2023 Stevie Awards For Women In Business

    November 15, 2023

    The Great Christmas Raffle Raising Vital Funds For Charities

    • Food & Drink
    November 8, 2023

    Brownie business reaches ‘epic’ proportions with support from Delivered UK and The APC network

    August 8, 2023

    London’s Remote Work Coffee Shop Guide: work-friendly independents and small chains closest to every tube stop in London’s Zone 1

    • Books
    November 27, 2023

    Why Too Much Ego is Disastrous in a Transformation Project

    November 16, 2023

    The Fenton Elliott Business Book Club

    About

    SME Today is published by the same team who deliver The Great British Expos’. We have been organising various corporate events for the last 10 years, with a strong track record of producing well managed and attended business events across the UK.

    Join Our Mailing List

    Receive the latest news and updates from SMEToday.
    Read our Latest Newsletter:


    Sign Up
    Twitter YouTube LinkedIn
    Most Recent Posts
    December 5, 2023

    Are You Ready For The Day When Mental Health & Welbeing Is A Legal Requirement At Work?

    November 30, 2023

    Document Management Company Celebrating Award Success For Third Consecutive Year

    November 30, 2023

    Podcast advertising: A lesser-known secret to marketing success

    November 29, 2023

    7 effective tips for achieving a better work-life balance as a self-employed professional

    November 29, 2023

    Education and Culture: Tools against workplace stress

    Categories
    • Books
    • Community
    • Education and Training
    • Environment
    • Events
    • Features
    • Finance
    • Food and Drink
    • Health & Safety
    • HR & Recruitment
    • In Profile
    • Legal
    • Marketing
    • News
    • Property & Development
    • Sponsored Content
    • Technology
    • Transport
    • Well Being
    Copyright © 2020 SME Today.
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Privacy
    • Contact

    Type above and press Enter to search. Press Esc to cancel.