- Visa’s Value of Acceptance study also reveals 68% of digital payment-accepting UAE merchants surveyed say accepting cards and mobile payments essential investment for business growth
- 40% of cash-only merchants surveyed plan on investing soon in digital payment technology
- Sixty-seven percent (67%) of digital payments accepting merchants claim most customers prefer paying by card or mobile phone
Dubai, United Arab Emirates (UAE): Visa (NYSE:V), a world leader in digital payments, has unveiled the results of an independent study titled ‘Value of Acceptance’, which explores merchants’ attitudes towards digital payments and the impact of digital commerce on small businesses and retailers in the UAE.
According to the study, more than 70% of UAE merchants surveyed claim increased revenue and higher customer footfall since accepting digital payments.
According to the study, digital payments and cash together among card-accepting merchants account for 90% of payments accepted among surveyed small businesses, with digital payments accounting for the larger portion.
Digital Payments: Business Growth Driver
The findings from Visa’s study show digital payment acceptance is an important driver in the growth of small businesses, with 68% of surveyed merchants accepting digital payments claiming acceptance of payment through card and mobile wallets is an essential investment that significantly contributes to their business growth.
Sixty-seven per cent (67%) of these merchants also claimed most of their customers prefer paying by card or mobile phone.
While digital payment-accepting merchants surveyed are aware of the associated costs with acceptance, 95% believe that the value and benefits derived from digital payment acceptance are at par with or exceed associated costs.
In fact, digital payment acceptance convinces 68% of retailers, with 63% expressing a strong intention to invest in new payment technologies in the future.
Challenges with Cash Only Acceptance
While providing convenience and easy refunds, customers not carrying cash cause over 25% of lost transactions for cash-only merchants.
As a result, almost 40% of cash-only merchants surveyed plan on investing soon in digital payment technology so they can begin to offer consumers a better payment experience.
Around half expect digital payment acceptance to increase both footfall and revenue. Other digital payment benefits cited by merchants include speed with payment processing and checkout which makes businesses look more innovative.
Salima Gutieva, Visa’s VP and Country Manager for UAE, said: “As the UAE forges ahead with its ambitious digital commerce agenda, our ‘Value of Acceptance’ study underscores the transformative power of digital payments for the retail sector. Embracing digital transactions not only aligns with the UAE’s cashless society ambitions but also unlocks significant growth potential for small businesses as well as for the wider economy.”
Gutieva added: “Beyond the benefits of security, speed, and convenience, digital payments also provide invaluable data insights. With more consumers turning to digital payments, this data can assist merchants in tailoring communication, targeting offers more effectively, implementing loyalty programs, and enhancing the overall customer experience, among other advantages. These aspects are instrumental in boosting business profitability and efficiency.”
Merchant Expectations of Digital Payment Provider
Merchants that already accept digital payments expect a range of value-added services from their digital payments provider to enhance their payment infrastructure and offerings for customers.
The most frequently cited include:
- Online payment acceptance (49%)
- More secure, and efficient B2B payments (48%)
- Better ways to communicate unique offers to cardholders and loyalty programs (43%)
- Mobile payment acceptance (like Visa’s Tap to-Phone solution) (41%). Additionally, multi-currency processing (32%) and fraud detection and prevention (27%) were revealed as areas where payment providers can further add value to local businesses.
