Press Releases | Visa
80% of small business owners optimistic about the future of their business despite COVID challenges
- Changing consumer behaviour the single biggest challenge for small business owners Visa study finds
- New digital technologies adopted by 85% of small businesses in response to shift in consumer behaviour since onset of pandemic
- 81% of consumers have taken measures to protect themselves from fraud as online sales rise
Tuesday 9 February, 2021: 80% of small business owners in Ireland say they are optimistic about the future of their business, despite the many challenges COVID-19 has created.
The Visa Back to Business Study – 2021 Outlook found that although 37% of businesses surveyed feel the past year has been one of opportunity, 63% say their business is still recovering from the challenging year. The study found the single biggest business challenge arising from the pandemic is changing consumer behaviour, identified by almost one third (31%) of Ireland’s small businesses.
Nine in every ten small business owners say they are dealing with a multitude of new challenges because of COVID-19 including keeping staff safe (26%); access to capital (22%); employee retention (17%) and technological barriers (26%).
However, the Visa study also found that most (85%) small businesses have embraced new forms of technology enabling them to meet changing consumer behaviours and help their businesses survive and thrive through difficult times, such as selling online or offering click and collect services.
By the end of 2020, 80% of small businesses involved in the survey had made updates to their operations to match the rising demand for online shopping, including the 34% selling more online and the 38% of small businesses that had increased their targeted social media activity.
“Small businesses have shown determination and resilience throughout the pandemic, with many adapting quickly to a new normal,” said Dominic White, Acting Country Manager Ireland, Visa. “As people continue to shop online and use digital payments in store, there is great opportunity for small businesses to keep innovating and finding new ways to serve their communities. With the support of our partners, we’re arming small businesses with tools and resources to empower them to maximise sales, so they can rebuild for long-term recovery”
Accelerated shift to contactless
When Visa conducted its previous Back to Business study (June 2020), 15% of small businesses had started offering their customers contactless payment options for the first time. In less than six months, this figure has more than doubled, with 47% now saying they have newly introduced digital payment options - a clear sign of how far and fast behaviour has shifted since the pandemic.
This trend is set to continue as the majority (64%) of consumers surveyed say they will prefer to use contactless as much, if not more, after the pandemic. 39% also say that they wouldn’t shop at a store that didn’t offer a digital payment option.
In fact, 71% of those consumers surveyed are now using contactless whenever possible demonstrating the need for all retailers, regardless of size, to be able to accept digital payments to attract and retain customers.
Spotlight on security as online shopping increases
With an increase in online shopping, both consumers and businesses report they are paying greater attention to security and fraud. In fact, the Visa study found that most (81%) consumers included in the study have recently taken some measure to protect themselves from fraud. More than half (51%) keep a close eye on their online transactions for any suspicious activity and 31% have recently updated the security on their devices.
But even with proactivity from consumers, businesses still have a crucial role to play in protecting payments. Last month, Strong Customer Authentication (SCA)1, a new EU regulatory requirement, aiming to reduce fraud, came into effect in Ireland. If businesses aren’t prepared, they may find that banks will decline customer payments.
SCA requires banks to check payments are being made by the correct cardholder - and not a fraudster - by asking them for two methods of identification such as a fingerprint or one-time passcode. By getting SCA-ready, SMEs can help make payments more secure and ensure their customers can still make online purchases quickly and easily.
As part of its ongoing commitment to small businesses, Visa has launched a number of initiatives aimed at supporting independent businesses as they adapt for a post COVID-19 environment. Programmes such as the Where You Shop Matters campaign and our partnership with Champion Green are encouraging people to shop local and support their communities.
For more information about tools and resources available for small businesses, visit Visa’s website.
Notes to editors:
Methodology: Visa Back to Business Study – 2021 Outlook
The Visa Back to Business study was conducted by Wakefield Research between November 13 and November 25, 2020, among 250 small business owners at companies of 100 employees or fewer in Ireland and seven other markets: Brazil, Canada, Germany, Hong Kong, Singapore, the UAE and US.
Further research was also conducted among 500 adults aged 18+ in Ireland. 1,000 adults were surveyed in the US and a further 500 in the six other aforementioned markets. The data was weighted to ensure an accurate representation of adults aged 18+ in each country. A copy of the full report can be found here.
1 Strong Customer Authentication (SCA) regulation is part of the revised Payment Services Directive (PSD2), with new requirements for the authentication of online payments. SCA means that consumers will notice an extra layer of security for most online transactions, which will ask for two forms of validation or identification before a payment can be processed.
Visa is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device. As the world moves from analogue to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information visit our website www.visa.ie, blog https://www.visa.ie/visa-everywhere/blog.html and @VisaIreland