KHALEEJ TIMES, Tuesday, Mar 23, 2021 | Shaaban 9, 1442
Digital-savvy small businesses upbeat on a swift rebound
Emirates:
Three out of four small businesses in the UAE are optimistic about a
recovery in 2021 from the pandemic-induced slowdown, according to a new
study by Visa.
A vast majority of UAE merchants (82 per cent) surveyed said their investments
in digital payments had paid off and will play a major role in their business
recovery.
The study shows that 86 per cent of retailers surveyed expect e-commerce to
continue to grow post-pandemic period while 60 per cent of merchants said
contactless payments is their customers’ preferred payment option, up from 18
per cent at the start of the pandemic. Nearly a third of respondents (31 per
cent) said they offered contactless payments as an option to respond to the
growing demand for the payment option during the pandemic.
Shahebaz Khan, Visa’s general manager for the UAE, said merchants feel
optimistic about business recovery in 2021 and the swift adoption of digital
payments and recognition of what their customers want – whether it is offering a
range of digital payment options, home delivery or promotions – has been pivotal
in them shifting gears from survival mode to recovery. “UAE retailers are
leading the way in showing how to translate insights into action and considering
half of business owners (54 per cent) are reliant on their small business as a
primary or only source of income, this urgency is palpable.”
Another significant trend that was revealed by the “2021 Small Business
Recovery” study is that cash usage has dropped – only seven per cent of
merchants surveyed said cash was customers’ preferred payment option, down from
around 20 per cent at the start of the pandemic.
The study also revealed the top spending trends merchants claim define the
Covid-19 business environment. These include increased use of contactless
payments (93 per cent of merchants), takeaways (87 per cent) and home delivery
(78 per cent). Merchants in UAE expect all of these spending trends to continue
to grow post-pandemic.
More than half (58 per cent) of merchants surveyed said they began offering home
delivery and pickup services during the outbreak. The study found that 4 in 10
retail merchants surveyed also implemented in-store self-help signage to meet
the needs of safety-conscious customers and 1 in 2 merchants ran offers and
promotions to attract and retain more customers.
Madhur Mehra, Mena head of Merchant Sales & Acquiring, Visa, said the findings
of the study give Visa insight into what the barriers are for merchants as they
transition to digital and reinforce our strategy to provide practical help for
SMBs to access a trusted pool of educational tools and technologies such as
low-cost acceptance solutions.
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