The Visa Back to business Study

The Visa Back to Business Study

Global Small Business and Consumer Insights

Powering Recovery Through Digital and Contactless Payments Amidst COVID-19

Global Small Business & Consumer Insights

The Visa Back to Business Study Summary

More than two-thirds (67%) of SMBs have tried a new approach to keep their business on track and meet shifting consumer demands since the onset of COVID-19.

78% of global consumers have adjusted the way they pay for items in the wake of intensified safety concerns.

BY THE NUMBERS

THE VISA BACK TO BUSINESS SURVEY METHODOLOGY

DID YOU KNOW?

Small businesses need and deserve all of our support as their contribution to local communities and the global economy cannot be overstated. Helping SMBs succeed in the current climate means giving them the right tools, data, and peer-to-peer insights to endure the financial impact of COVID-19.

Going Digital and Contactless in the New Normal

INSIGHT 1: Safety First Means Contactless

In every region, contactless payments have become a driving differentiator: nearly two-thirds (63%) of consumers would switch to a new business that installed contactless payment options. For close to half of global consumers (46%), using contactless payment methods is among the most important safety measures for stores to follow.

INSIGHT 2: Revenue, Attracting Customers Are Top Concerns

Globally, small business owners estimate at least six to 10 more challenging months before their business is fully operational, and 86% have overall concerns about the state of their business in the next month. Their greatest immediate concerns include revenue declines (52%), attracting new customers (46%), and having to reduce wages or salaries (22%).

INSIGHT 3: Pivoting to a Digital-First Mindset

More than a quarter of SMBs (28%) have tried targeted advertising on social media or sold products or services online (27%). Another 20% have adopted contactless payments. One-third (33%) of small businesses report they have accepted less or stopped accepting cash since COVID-19.

INSIGHT 4: SMB Optimism vs. Consumer Realities

Despite the unpredictable nature of the pandemic, 75% of SMBs are optimistic about the future. Consumer support of locally owned businesses could be improved to support this high optimism, as just 9% of consumers say they shop exclusively at locally owned businesses.

Small Business Study Findings

BALANCING CHALLENGES

The unpredictability about virtually every matter associated with COVID-19 is unsettling for business owners who depend on projections and forecasts. The biggest operational challenges SMBs are facing are shifting consumer behavior (35%), balancing challenges in their life with their business challenges (28%), and keeping their employees safe and healthy (27%).

More than two-thirds (67%) of SMBs have tried a new approach to keep their business on track since the start of COVID-19. With the global focus on safety and hygiene during COVID-19, transactions involving cash have come under even greater scrutiny. A third (33%) of SMBs report their business has accepted less or stopped accepting cash since COVID-19.

KEY BUSINESS CHALLENGES

While small businesses continue to be heavily impacted by the COVID-19 outbreak, many are standing firm due in part to their community support. The top concerns about shifting their business to online or increasing its online presence are data privacy and security (32%), less personal connection with customers (31%), and cost to invest in digital infrastructure (28%).

Consumer Study Findings

CHANGE IS HERE

In a world previously driven by price, shoppers are now putting COVID-19 safety measures at the top of their shopping lists and will reward stores that do the same. Nearly four in five (78%) consumers have made changes to the way they pay for items due to COVID-19.

Country-Specific Findings

Brazil

An overwhelming majority (84%) of small businesses (SMBs) in Brazil are optimistic about the future of their business. Nearly three in four (73%) SMBs in Brazil have found their local community to be supportive of their business. 84% of SMBs in Brazil have tried a new approach to keep their business on track since the start of COVID-19.

Canada

Almost four in five (77%) small businesses (SMBs) in Canada are optimistic about the future of their business, with two-thirds (67%) saying they have found their local community to be supportive of their business.

Germany

Almost three in four (72%) small businesses (SMBs) in Germany are optimistic about the future of their business. However, SMBs in the country estimate it will be an average of nine months before their business is back to being fully operational.

Hong Kong

More than three in five (64%) SMBs in Hong Kong are optimistic about the future of their business. 87% of SMBs in Hong Kong have tried a new approach to keep their business on track since the start of COVID-19.

Ireland

A majority (74%) of small businesses in Ireland are optimistic about the future of their business. More than half (64%) of SMBs in Ireland have pivoted to keep their business on track since the start of COVID-19.

Singapore

Over half (57%) of SMBs in Singapore are optimistic about the future of their business. Nearly three quarters (72%) of SMBs in Singapore have pivoted to keep their business on track since the start of COVID-19.

United Arab Emirates (UAE)

Nearly all (94%) SMBs in the UAE are optimistic about the future of their business. SMBs in the UAE have shown an incredible willingness to evolve in the face of change, with 94% pivoting to keep their business on track since the start of COVID-19.

United States

A large majority (82%) of SMBs in the U.S. are optimistic about the future of their business. Three in five (60%) of SMBs in the U.S. have pivoted to keep their business on track since the start of COVID-19.