Visa Pakistan reveals 80% small businessmen believe in digital payment investments

The ‘2021 Small Business Recovery' research surveyed small and medium businesses in Pakistan, Egypt, UAE, and KSA.

digital payments

A new study by Visa Pakistan has revealed that nearly eight in ten merchants of small businesses in Pakistan believe digital payments is a necessary investment in their business recovery.

Two in three small businesses (63%) surveyed stated that they feel confident about a business recovery in 2021.

The ‘2021 Small Business Recovery’ research surveyed small and medium businesses in Pakistan, Egypt, UAE, and KSA to understand how they have emerged to manage the coronavirus’s impact on their bottom line.

The study also revealed the important spending trends that retailers believe define the COVID-19 business environment. The trends include increased use of contactless payments (58% of merchants), takeaways (81%), and home delivery services (40%).
Traders in Pakistan expect all of these spending trends to continue to grow post-pandemic.

Moreover, 74% of merchants believe that online shopping will remain a preference well after the crisis.

When asked about payment practices during the pandemic, more than half of dealers surveyed in Pakistan (55%) said card payments (PIN and chip) were the preferred payment choice among their customers.

More than one-third of merchants stated that they installed a digital presence (36% ) and implemented home delivery and pickup services (43%). Almost half introduced new product services (47 %) to attract and retain more customers, while 59% witnessed increased loyalty programs.

Another interesting finding was that in Pakistan, 7 in 10 merchants surveyed showed loyalty to their communities by giving back through donations or providing complementary products and services to those in need during the pandemic.

To prepare for future emergencies, 31% of Pakistani merchants who currently do not have an online presence said they have been planning to create an eCommerce platform. More than 50% are intending to offer contactless payments and digital prepayment options to consumers.

One-third of merchants (34%) said they believe accepting digital payments is likely to increase their sales. Merchants who only accept cash are planning to invest in new digital payment technologies (33%).

The ‘2021 Small Business Recovery’ study was conducted to understand where small businesses are in their recovery. The process consisted of 15-minute interviews with over 150 merchants in each market and within key segments ranging from food, fashion, and travel.

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