Market Overview

Small Business in the Digital Era: New Report Helps Businesses Reach the Connected Consumer

  • Created in collaboration with America's Small Business Development
    Center, National Federation of Independent Businesses, National
    Restaurant Association, U.S. Hispanic Chamber of Commerce and 16
    digital leaders
  • New report shares key insights- SMBs estimate cash transactions
    cost businesses 57 percent more than digital transactions- and
    actionable tips on how business owners can quickly digitize and avoid
    common pitfalls

Visa (NYSE:V) and a consortium of key industry organizations today
announced Digital
Transformation of SMBs: The Future of Commerce
, a first-of-its-kind
look at the opportunities and challenges small and medium size business
(SMBs) owners face in an increasingly digital world. The report provides
a snapshot of how SMBs can capture revenue opportunities and move to
more technology-focused processes. Developed with leading SMB advocates,
the report also offers actionable tips for technology and digital
upgrades that business owners can easily implement to grow their

This press release features multimedia. View the full release here:

Digital Transformation of SMBs: The Future of Commerce (Graphic: Business Wire)

Digital Transformation of SMBs: The Future of Commerce (Graphic: Business Wire)

"For small and medium size business owners, the perceived cost, time and
tech-proficiency required for building a digital presence can feel like
an insurmountable obstacle. But it doesn't have to be," said Jack
Forestell, chief product officer, Visa Inc. "Through this report, we
hope to help SMBs navigate the complexities of today's technology-first

Digital Payments Improves Profitability

One immediate opportunity for SMBs to go digital is by digitizing
checkout and other business processes.

  • Based on survey responses, Visa estimates that the SMBs' average cost
    of processing digital payments, inclusive of direct expenses and labor
    costs, is 57 percent less than that of non-digital payments.
  • Further, 65 percent of SMBs agree customers spend more when they use
    cards versus cash.
  • 78 percent of consumers surveyed rank a digital payment method, such
    as paying with a card or mobile device, as their number one preferred
    payment option.

Digital Presence for SMBs

According to the report, consumer purchasing behavior is driven in part
by websites and online experiences.

  • More than half of consumers (51 percent) wish they could shop
    exclusively online. This has big implications for SMBs, given only 46
    percent of SMBs surveyed have an online presence, such as through a
    business website or online marketplace.
  • Today, 38 percent of consumers' retail purchases are made online, but
    that number is expected to grow, as 61 percent of consumers plan to
    increase their online purchases in the next 5 years.
  • As online purchases continue to increase, it could exacerbate a
    widening gap, given only 15 percent of SMBs' sales are conducted
    through digital channels.

Offers & Loyalty

Only one in five SMBs surveyed offer a loyalty program, yet rewards
drive consumer preference and digital programs can offer instant value
and gratification.

  • 78 percent of consumers are more likely to choose a business that
    offers a loyalty program over one that does not and 65 percent of
    consumers surveyed said they examine loyalty programs prior to
    shopping at a store, visiting a restaurant, or trying out a service.
  • 90 percent of consumers prefer a digitally based loyalty program
    compared to a paper-based stamp or punch card.
  • Nearly 80 percent of businesses say loyalty programs have a positive
    impact on average ticket size, repeat customers and revenue.

"More than 80 percent of consumers surveyed say digital related benefits
are motivating factors to shop at a business, yet our research shows
SMBs are currently under utilizing these preferred digital channels,"
continued Forestell. "This new report offers actionable ways for SMBs to
bridge the gap between consumer expectations and current offerings,
resulting in untapped profit and growth in this digital revolution."

About the Digital Transformation of SMBs

The Digital Transformation of SMBs report is an independent study
commissioned by Visa in collaboration with a consortium of trade
associations, technology providers, banks and researchers to help bridge
the gap between consumer expectations and current SMB offerings.

Consortium includes: America's Small Business Development Center,
National Federation of Independent Businesses, National Restaurant
Association, U.S. Hispanic Chamber of Commerce, ESI ThoughtLab,, Bank of America Merchant Services, BB&T, Capital One,
Clearent, Elavon, iPayment, Maru/Matchbox, Pivotal Payments, Priority
Payment, Square, TSYS, U.S. Bank, Wells Fargo and WorldPay.

To download the Digital Transformation of SMBs: The Future of Commerce
report and learn how to begin growing your business, visit


Maru/Matchbox, a global consumer intelligence firm, surveyed 425
businesses that represent business payment decision makers and nearly
2,500 consumers in 2018 to form the Maru/Matchbox 2018 Small Business
and Consumer Surveys. ESI ThoughtLab, a leading economics consultancy
firm, collaborated with Visa to develop equations that enable the cost
analysis to realize the impact of digital versus non-digital payments.

About Visa

Visa Inc. (NYSE:V) is the world's leader in digital payments. Our
mission is to connect the world through the most innovative, reliable
and secure payment network - enabling individuals, businesses and
economies to thrive. Our advanced global processing network, VisaNet,
provides secure and reliable payments around the world, and is capable
of handling more than 65,000 transaction messages a second. The
company's relentless focus on innovation is a catalyst for the rapid
growth of connected commerce on any device, and a driving force behind
the dream of a cashless future for everyone, everywhere. As the world
moves from analog to digital, Visa is applying our brand, products,
people, network and scale to reshape the future of commerce. For more
information, visit
and @VisaNews.

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