Seizing the opportunity of digital payments for SMEs

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Small and medium-sized enterprises (SMEs) are key to the well-being of the economies of Latin America and the Caribbean. But they are also especially vulnerable and face a number of common challenges. From accessing capital to operate and grow their businesses to improving their efficiency and accessing new customers to increase their sales. Many SMEs have experienced a decline in sales and uncertainty about their future in recent years. Banks and Fintechs have a key role to play in supporting the stability and recovery of this segment, not only in terms of access to financing but also simply in providing them with the support they need to grow their businesses.

A Visa-commissioned study of small business owners and key decision makers in small and medium-sized businesses found that 33% considered it extremely important to manage their financial services digitally, and 53% considered it very important. Additionally, 2 in 3 considered a new approach to maintaining their business and one in three decreased their use of cas how to get spain number for whatsapp This last point is especially important for Gen Z small business owners, where 41% said they accepted less cash. In addition, different types of solutions experienced growth during and after the pandemic: 80% of SMEs began accepting payments after the pandemic, 83% use Online Banking or their bank’s mobile app, 30% of sales were completed through websites, contactless cards or mobile phones, and 80% of these SMEs communicate with their customers through social media.¹

To acquire and retain SME customers and develop their ecosystems, financial institutions and Fintechs in Latin America and the Caribbean will need to expand their offerings beyond financial management and remain accessible and flexible to meet the needs of their customers.

To do this, it is essential to take into account the needs and concerns of entrepreneurs, and thus guide the development of new solutions that aim to give SMEs access to the new opportunities that digital payment methods offer them, allowing them to pay suppliers and collect money from their clients through innovative technological solutions that provide them with security, protection, efficiency, access to cash flow and control of their business.

Financial institutions and Fintechs remain critical in helping small businesses grow through financing and through tailored products and solutions that offer a means to receive and make payments digitally, and more broadly through advice and support for their businesses.