For Small Businesses to Grow, Digital Payment Tools Are No Longer a “Plus” –They’re a Necessity

Small and midsize businesses (SMBs) are the lifeblood of the modern economy, making up 90% of global businesses and up to 70% of global GDP. Their agility and innovation contribute significantly to economic growth, creating job opportunities and bringing new products and services to market. As key drivers of local and global markets, SMBs play a vital role in shaping the business landscape and driving entrepreneurial spirit.

While running a business and following a passion can be incredibly rewarding, it certainly isn’t for the faint of heart. Owners must balance managing cash flows, digitizing operations and adapting to customer demands, all while navigating ongoing disruptions fueled by inflation, supply chain issues and hiring challenges–many of which are expected to persist throughout 2024. These fluctuations in macroeconomic conditions ultimately impact one of the most important growth levers in business operations: cash flow.

To alleviate some of these stress factors and adapt to the anywhere, anytime customer purchasing mindset, SMBs should make sure they’re adopting new digital payment and business capabilities. Digital tools can help simplify processes, integrate with existing systems and deliver data in near real-time–all while keeping assets safe and secure–increasing resilience and bolstering operations and the bottom line.

Reporting tools to keep track: There are now better ways to manage finances and business operations. Alongside Visa, financial institutions and fintechs offer businesses a suite of reporting tools to help easily monitor various aspects of their businesses–from the results of their latest social media campaign to the state of their finances and card spend. These tools empower business owners to access and leverage data securely, enabling business owners to analyze money going in and out of their business and make more informed decisions.

AI-enhanced technology to accelerate SMB growth: Strategic adoption of AI can help SMBs reimagine daily operations, making them more efficient and effective. According to a recent survey by Visa, 84% of the surveyed SMB leaders across the U.S. believe that AI could help them re-focus their people resources and talents in more effective ways. ¹Much like a virtual personal assistant, AI can automate routine tasks like scheduling and email filtering or forecasting sales and managing inventory, so that SMBs can spend more valuable time on strategic decision-making and growing their businesses.

Seamless, secure shopping experiences to attract new customers: As the digital revolution continues forward, payments are no longer just about completing a sale. Businesses need to provide convenience, security and simplicity at every touchpoint–no matter their size. For businesses that haven’t jumped on contactless payment options already, this year is the perfect time to start! Through new digital acceptance solutions, businesses can accept card payments however their customers want to pay, removing friction and creating a more seamless experience. Consumers also want to ensure that their personal information is protected. Small businsses can access risk solutions that utilize advanced encryption technologies, authentication solutions and AI to protect customer information with the utmost caution and proactivity.

Expanding customer reach on a global level: SMBs are looking “beyond Main Street” and plan to prioritize international sales, according to the seventh edition of Visa’s Global Back to Business Study. The global move is powered, in part, by the adoption of new technologies by entrepreneurs, including digital acceptance solutions that support cashless transactions. This is critical because more than a third of SMBs (35%) around the world said accepting new forms of payments is an opportunity to reach new customers this year. Digital payment tools enable today’s business owners to be virtually borderless, accessing customers in other countries, enabling purchases with local methods and currencies and leveling the playing field with larger businesses. For business owners, that means keeping transcations moving by quickly accepting card payments and providing a streamlined payment experience for online customers.

Digital payment services to expand your workforce and revenue faster: How a business pays its vendors and employees is now just as important as how it receives customer payments. Digital enablement allows businesses to scale their payment technology by giving employees near real-time access to wages and tips, helping business owners with employee retention and recruitment. Digital services can also allow businesses to send money globally through a single endpoint. A business owner traveling overseas can leverage real-time payment services to quickly push funds to their Visa business card, manage cash flow and pay suppliers while away from their homebase.

No matter where the commerce transformation takes us, SMBs will continue to play a pivotal role in job creation, driving innovation and propelling economic growth. As businesses adapt to the digital revolution, going digital themselves will become vital for businesses to manage cash flow, reduce overhead costs, automate business processes, reach new customers and minimize reliance on manual processing.

¹Data is from 301 respondents from a Maru online survey who are described as “Small Business Leaders” –this means they are at least senior decision-makers with the business, including roughly eight-in-ten who are the business’ primary owner. Responses come from across the United States, and represent a mix of revenue bands, business tenure, industry, etc.