How Digital Payments Can Help Armenian SMBs Attract More, Happier Customers
25.10.2024 | 12:11 Home / News / Visa Voice /
All over the world, small and medium-sized businesses (SMBs) are the backbone of local economies. Representing approximately 90% of global businesses and over 50% of worldwide employment1, they are the crucial drivers of economic growth. Emerging economies like Armenia2 can contribute up to 40% of the national GDP.
Visa views supporting SMBs as the foremost priority and digital payment solutions as a means to do so. In one global study, Visa found that 73% of small business owners said new forms of digital payments are fundamental to their growth3. Responding to this demand, in 2020, Visa undertook a mission to digitally enable 50 million SMBs in three years and far surpassed the goal, empowering 67 million SMBs by the end of 2023.
As consumers increasingly seek the convenience of digital payments, small businesses are catching up to the benefits.
Here are three main reasons small businesses are turning to cashless.
1. Attract more customers
41% of consumers surveyed globally said they have abandoned a purchase in a physical store because digital payments weren’t accepted4. In Armenia, the cashless market is also growing rapidly: in 2023, non-cash payments and Internet transactions for the first time, both in quantity and in volume, began to exceed cash transactions5.
2. Provide a more seamless experience
People are impatient and tap to pay is fast. Rather than having to insert or swipe a card, customers can simply hold their contactless payment-enabled card or device over the payment terminal. This can shave time off transactions both in terms of transaction time and by cutting down on time spent waiting in line. A smoother customer experience makes for happier customers.
3. Amp up security
When a customer swipes a card with a magnetic strip, their information can be stolen with a skimming device. But when customers tap to pay, a one-time, transaction-specific code is generated. This code and the customer’s account number get transmitted—but not other crucial information, like their name, billing address, or verification code.
Because of this, even if someone were to get their hands on your payment information, they couldn’t make a transaction without the card or a device, which can have even more added security, like Face ID. All of this together helps reduce counterfeit fraud in contactless payments.
Going global
In Armenia, Visa’s global commitment to empowering local small enterprises remains unwavering. This year, Visa kicked off the global She’s Next initiative in the country to provide female entrepreneurs with skills, education, funding, and inspiration to start or expand their businesses. Visa also entered into a partnership with the European Bank for Reconstruction and Development (EBRD) to empower SMBs, promote economic and financial inclusion, and digitalize public services, including GovTech and public transit.
Visa’s support for women-led SMBs is further amplified through the She’s Next digital community platform, developed in partnership with Emerging Europe. This platform connects businesswomen from across the globe, fostering networking opportunities, sharing experiences, and promoting international business expansion.
Visa is also driving Armenia’s digital transformation, supporting sustainable and inclusive economic growth. By accelerating the adoption of cashless payments, Visa enables both consumers and businesses to enjoy the convenience, security, and efficiency of a digital economy.
Throughout 2024, Visa has actively engaged in various events and discussions to promote Armenia’s digital transformation agenda and support the country’s cashless future. Visa has participated in the Silicon Mountains Tech Summit and the Doing Digital Forum, as well as collaborated with the Information Systems Agency to host the event 'Driving Government Digitalization in Armenia: Visa’s Collaborative Approach.' Visa also participated in the World Congress on Innovations and Technology 2024/DigiTec.
1https://www.worldbank.org/en/topic/smefinance
2https://www.worldbank.org/en/topic/smefinance
3https://usa.visa.com/dam/VCOM/blogs/visa-back-to-business-study-2022-outlook-jan22.pdf
4https://usa.visa.com/dam/VCOM/blogs/visa-back-to-business-study-2022-outlook-jan22.pdf
5https://finport.am/full_news.php?id=49961&lang=3
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Visa views supporting SMBs as the foremost priority and digital payment solutions as a means to do so. In one global study, Visa found that 73% of small business owners said new forms of digital payments are fundamental to their growth3. Responding to this demand, in 2020, Visa undertook a mission to digitally enable 50 million SMBs in three years and far surpassed the goal, empowering 67 million SMBs by the end of 2023.
As consumers increasingly seek the convenience of digital payments, small businesses are catching up to the benefits.
Here are three main reasons small businesses are turning to cashless.
1. Attract more customers
41% of consumers surveyed globally said they have abandoned a purchase in a physical store because digital payments weren’t accepted4. In Armenia, the cashless market is also growing rapidly: in 2023, non-cash payments and Internet transactions for the first time, both in quantity and in volume, began to exceed cash transactions5.
2. Provide a more seamless experience
People are impatient and tap to pay is fast. Rather than having to insert or swipe a card, customers can simply hold their contactless payment-enabled card or device over the payment terminal. This can shave time off transactions both in terms of transaction time and by cutting down on time spent waiting in line. A smoother customer experience makes for happier customers.
3. Amp up security
When a customer swipes a card with a magnetic strip, their information can be stolen with a skimming device. But when customers tap to pay, a one-time, transaction-specific code is generated. This code and the customer’s account number get transmitted—but not other crucial information, like their name, billing address, or verification code.
Because of this, even if someone were to get their hands on your payment information, they couldn’t make a transaction without the card or a device, which can have even more added security, like Face ID. All of this together helps reduce counterfeit fraud in contactless payments.
Going global
In Armenia, Visa’s global commitment to empowering local small enterprises remains unwavering. This year, Visa kicked off the global She’s Next initiative in the country to provide female entrepreneurs with skills, education, funding, and inspiration to start or expand their businesses. Visa also entered into a partnership with the European Bank for Reconstruction and Development (EBRD) to empower SMBs, promote economic and financial inclusion, and digitalize public services, including GovTech and public transit.
Visa’s support for women-led SMBs is further amplified through the She’s Next digital community platform, developed in partnership with Emerging Europe. This platform connects businesswomen from across the globe, fostering networking opportunities, sharing experiences, and promoting international business expansion.
Visa is also driving Armenia’s digital transformation, supporting sustainable and inclusive economic growth. By accelerating the adoption of cashless payments, Visa enables both consumers and businesses to enjoy the convenience, security, and efficiency of a digital economy.
Throughout 2024, Visa has actively engaged in various events and discussions to promote Armenia’s digital transformation agenda and support the country’s cashless future. Visa has participated in the Silicon Mountains Tech Summit and the Doing Digital Forum, as well as collaborated with the Information Systems Agency to host the event 'Driving Government Digitalization in Armenia: Visa’s Collaborative Approach.' Visa also participated in the World Congress on Innovations and Technology 2024/DigiTec.
1https://www.worldbank.org/en/topic/smefinance
2https://www.worldbank.org/en/topic/smefinance
3https://usa.visa.com/dam/VCOM/blogs/visa-back-to-business-study-2022-outlook-jan22.pdf
4https://usa.visa.com/dam/VCOM/blogs/visa-back-to-business-study-2022-outlook-jan22.pdf
5https://finport.am/full_news.php?id=49961&lang=3
