A Visa commissioned research reveals that accepting digital payments positively impacts small and micro businesses
75% of the Mexican SMB-respondents report a revenue increase driven by digital payments
75% of surveyed businesses are now accepting digital payments for the first time
Mexico City, March 15, 2021. As the current economic crisis continues to impact millions of small and micro businesses (SMB) worldwide, a research commissioned by Visa Inc. in Mexico reveals that accepting digital payments can help SMB owners to increase revenue, improve business management and expand their customer base. The payments technology opportunity is also driving digital inclusion, as 75% of surveyed in Mexico reported they are now accepting digital payments for the first time.
The study commissioned by Visa and conducted by 60 Decibels, a global impact measurement firm, indicates that 75% of the SMBs surveyed said their monthly revenue increased and 72% said that their customers were spending more since they began to accept digital payments. Among SMBs that reported growth, the average increase in revenue was 22%. Seventy six percent stated that accepting digital payments helped them to improve business management, including finances and savings. The survey found that one in three businesses are accepting more digital payments than before the pandemic. The research shows that starting to accept digital payments has a clear, positive impact on SMBs’ revenue, customers, and operations.
“Many Mexican SMBs have relied on access to payments technology to help keep their businesses afloat, and some have even begun to grow in the current context,” said Luz Adriana Ramirez, Country Manager of Visa Mexico. “Digital payments are an onramp to financial inclusion, which creates inclusive economic development. We are committed to work with the payments ecosystem to support SMB owners to become digitally enabled and rebuild stronger, more competitive and resilient businesses for the recovery of our communities.”
Micro, small and medium enterprises account for more than 90% of global businesses and more than half of global employment. In Mexico, the role of micro and small businesses in their communities and the local economy cannot be overstated; it is estimated that they generate around 45% of Mexico’s GDP and contribute nearly 68% of the employment
For some of the SMBs interviewed acceptance of digital payments not only helped their business, but also improved their quality of life.
One of the SMB respondents, Rodrigo, shared that after being a waiter for 27 years, he purchased a local Italian restaurant in Valle de Bravo, Mexico in 2019. When Covid-19 hit, the livelihood of his family of six was at stake, until he introduced delivery and take-out services through mobile social media apps and online.
“I was old school, but I needed to adapt to change. Accepting digital payments enabled me to keep the doors open,” says Rodrigo. He reports that 90% of transactions were digital payments between July and September, and earnings were up to 30% of their pre-Covid monthly revenue, as opposed to just 10% before setting up an online presence.
As a company that enables digital payments at nearly 70 million merchant locations around the world, Visa’s priority is to help SMBs thrive at every step. Through research such as this, Visa’s goal is to empower the payments ecosystem, including SMB owners, with knowledge on how digital payments can support businesses to grow and
bounce back from COVID-19.
To access the complete findings of the research, visit Unlocking the Benefits of Digital Payments For SMBs: Insights from Mexico. More information on the programs Visa has made available to small and micro businesses can be found on the Visa Small Business Hub and the Visa Small Business COVID-19 relief site.
About Visa Inc.
Visa Inc. (NYSE: V) 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 digital commerce on any device, for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, visa.com/blog and @VisaNews.
[1] The research “Unlocking the Benefits of Digital Payments for Micro and Small Businesses: Insights from Mexico,” an independent study commissioned by Visa and conducted by 60 Decibels surveyed 753 SMBs across Mexico between October and November 2020 that had started to accept digital payments during the 18 months prior to the study. To access the complete findings and methodology, visit: http://vi.sa/mx-digitalpaymentsresearch
[2] Source: The World Bank https://www.worldbank.org/en/topic/smefinance
[3] Source: Economic Census 2019 INEGI (National Institute of Statistics and Geography)