Now that wallets are digital, cards are tapped and phones are waved, purchases and transactions have never been easier – creating ever more opportunities for people to turn their passion into a business.
According to the UK Payment Markets Summary 2021, cash was used for less than a fifth (17%) of all payments in 2020, while contactless cards represented 27% of all payments.
The trend towards digital payments is set to continue as people adopt mobile payment apps. Global Business Outlook predicts that by 2023, 72% of UK adults will use their phones and watches to make payments. Meanwhile, the UK’s e-commerce market, already the world’s third largest, is forecast to grow by a quarter by 2025 to more than £260bn, according to a report released by financial technology firm FIS.
If entrepreneurs want to benefit from this boom in mobile payments and make their business passion a success, it’s essential they offer customers a variety of trusted transaction methods across multiple channels – whether it be via digital wallets, secure mobile terminals, stored account details, rapid checkouts or Click to Pay. “A diversity of buying options for customers can mean a more diverse client-base,” says Martin McTague, national chair of the Federation of Small Businesses, which carries advice and support about transactions on its website.
One person who has seized these new opportunities is Anita Lo, 28, who has turned her passion for old things into a thriving business. “Growing up, I always enjoyed browsing antique shops and collecting curios,” she says. “During lockdown I decided to pursue my hobby and set up the vintage clothing and antiques store, Clara’s Box.” The majority of sales come from online buyers, but Lo also trades from antiques fairs, meaning she has to provide payment options.
“I need to be flexible because I trade a lot online and my customers come from all over the world,” she says. “I realised it was important not to restrict myself to one platform and to make it easy for people to use their own preferred method.”
Research indicates that customers increasingly expect transactions to be frictionless and will stop shopping with businesses that slow them down. Customer experience is now a unique selling point, which means companies are focused on offering a streamlined payment experience across all channels.
“Technological developments mean we can find, buy and pay at the touch of a button,” says Zoe Bayliss Wong, who sits on the advisory board of everywoman, a female business network. “The next generation of shoppers expects convenience and easy access as standard.”
The huge 69% abandonment rate for online shopping carts is partly blamed on complex checkout and clunky payment processes that confuse customers. Once those customers are gone from that site, the danger is, they may never return.
Business and marketing consultant Angie Taffs has extensive experience when it comes to moving businesses online and taking payments. “Everything has to be completely streamlined now,” she says. “The process has to be quick, or … you’ll lose the customer.”
Lo describes the payments process as a learning curve. After initially launching her website with just one payment option during the first lockdown in 2020, she has since broadened her appeal to provide several.
“I sense people trust digital payments if they see you’re using the leading brands. It’s easy and secure, and they have a record of the transaction. I want as few barriers to buying as possible,” she says. “When I buy stock, I have the same attitude. It can be very time consuming making vintage materials sales-ready – that’s what I want to concentrate on.”
Optimising payment systems can also increase profitability by reducing costs and making it easier to manage operations. Digital records can help entrepreneurs better manage their stock and save money, for instance, by buying in bulk at the right time. Small shops can track their sales and use the information to improve inventory management. The checkout stage also provides the opportunity to offer customers added value, such as consumer credits, loyalty points, or other forms of engagements. For hospitality outlets, there’s no more cashing up and discovering an unbalanced till.
Digital payments can also boost casual trade, and with contactless limits in the UK now set at £100 that can be significant, especially for small businesses that sell their products at markets using mobile point-of-sale terminals.
“I work with a lady who sells makeup and skincare ranges,” says Taffs. “Now she uses a card reader, she finds customers are happy to make larger purchases.”
Small businesses rarely have it easy, but by ensuring they can accept payments in as many ways as possible, they multiply their chance of success.
When more of us play, all of us win
Competition is at its best when everyone truly has the chance to take part. That’s why Visa is a proud sponsor of UEFA Women’s EURO 2022. And Visa’s support goes beyond the pitch. Visa has committed to digitally enabling 8 million small businesses in Europe by the end of 2023, providing technology and tools to help turn small ideas into big businesses, wherever they are. To find out more about how Visa is championing access and inclusion visit: visa.co.uk/wUEFA2022
