More than two thirds of customers say they would switch to businesses now offering contactless payment options. Over three quarters of consumers say they have changed how they pay, due, in part, to the COVID-19 pandemic.
These statistics were unveiled by a new report by Visa. The report shows that 75% of small business owners are optimistic about the future of business.
Visa Contactless Payments Survey
Visa’s ‘Back to Business’ study is part of a series of initiatives by Visa. The initiatives are designed to provide small businesses with tools and resources to build a stronger business. The survey asked 250 small business owners around the world their thoughts on business operations in a post-COVID world. The study also surveyed 1,000 adult consumers about their payment and shopping habits in the current climate.
Changing Methods of Payments
A key finding was the changing payment demands of consumers and the emphasis on contactless payment. This finding is important, as it reiterates the need for businesses to offer contactless payment options to reach consumer demand.
Speaking about changing consumer requirements and how businesses should adopt, Suzan Kereere, Visa’s global head of merchant sales, said:
“Consumers are putting COVID-19 safety measures at the top of their shopping lists and rewarding businesses that do the same.
“Historically, we see behavior change at the point of sale as a gradual shift over time. But, COVID-19 has created an immediate need for safer, more efficient shopping experiences both on and offline and consumers are responding by rapidly migrating to digital commerce.
“We want small businesses to know that Visa is here to help them navigate these new consumer needs and expectations, which will make their businesses stronger now and in the long run,” Kereere continued.
Contactless Payments are a Priority Among Consumers
About 46% of consumers believe using contactless payment methods is among the most important safety measures for retailers to follow. And 48% of consumers say they would refuse to shop at stores that only offer payment methods requiring contact with cashiers.
The survey also found that almost four out of five consumers admit to having made changes to the way they pay. Almost half (49%) said they shop online when possible. And 48% use contactless payments, and 46% don’t use as much cash.
Also, 70% of customers say they have used a new shopping or payment method for the first time in the wake of the pandemic. And 26% have used tap to pay for in-store purchases while 34% say they have shopped for groceries or household items online.
Small Business Optimism Despite the Challenges
Despite changing consumer shopping and payment habits, small businesses remain optimistic about the future of business. The survey found that 75% of small businesses have a positive attitude about the future. That said, business owners recognize there will be challenges ahead.
The survey found 52% of the business owners surveyed said revenue declines were among their biggest concern. And 46% are most worried about attracting new customers. 22% of small business owners are having to reduce salaries because of the current conditions.
The key takeaway of Visa’s report is that small businesses must be aware of and adjust to fluctuating consumer demands.
Offering contactless forms of payment should be a priority for retailers if they are to meet consumer demands. Businesses who fail to keep up with the needs of customers run the risk of losing out on business.