Embracing the digital wave: The future of payments

The winds of change are sweeping across the global economy, and a recent study from Remitly and Visa sheds light on the transformative power of digital remittance. In a world where ‘cash is king’ is slowly being replaced by ‘digital is dynamic’, the future of payments is undergoing a revolution

CREDIT: This is an edited version of an article that originally appeared on SME Today

Visa’s survey, part of The Future of Digital Remittance campaign, unveils a striking shift in the small business landscape. A whopping 59% of small enterprises are already aboard the digital payments bandwagon or planning an exclusive voyage. For over 70% of them, this digital odyssey is not just a choice; it’s a necessity for growth.

Global significance

Picture this – the global stage set for a dramatic increase in digital transactions. By the end of 2025, the number of outlets embracing card payments is anticipated to dance past 100 million, up from 74.5 million in 2019. The rise, much like a crescendo, is fuelled by the pandemic-induced surge in contactless payments. The rhythm of digital transactions is forecasted to grow at 13.3% YoY, painting a picture of a market value soaring beyond $15.1 trillion.

Consumer shift

There’s a noticeable change in consumer behaviour – online and in-store. Digital payments are becoming the preferred method, but cash and checks still account for one-third of personal spending.

Navigating the digital tide:

1. Diversify payment options: Encourage your customers to embrace digital payments by offering various solutions, from mobile apps to online bank transfers. Regardless of the nature of your transactions, having multiple payment options ensures flexibility.
2. Streamlining financial records: Digital payment solutions simplify financial record-keeping through automated bookkeeping, live data tracking, and insights. This streamlines your financial processes, making data work more efficiently.
3. Choosing the right software: Selecting the right digital payment software is crucial. Prioritise safety to protect against data breaches, ensuring a secure foundation for your company.
4. Embrace inclusivity: Don’t limit customers to card-only payments. Including cash widens your customer base and prevents potential profitability issues. Embrace inclusivity, catering to customers of all age groups.
5. Effective communication: When introducing changes, effective communication is key. Inform consumers about potential risks and benefits, paving the way for a smoother transition without revenue loss.

In the journey towards a digital-first economy, businesses must adapt wisely. The digital shift is real, and every business needs to find its path in this evolving landscape.