New Paysafe study reveals that despite the impact of COVID-19, businesses are still innovating to maintain plans for future growth
Three quarters (75%) of UK businesses are experiencing a negative impact on their business due to COVID-19 and even in the long term, the number that say the pandemic will have a negative effect on them (45%) outweighs those that believe it will have a positive impact on their business (31%). That’s according to new research out from specialist payments platform Paysafe as part of its ‘Lost in Transaction’ report series, in which 1,100 small to medium sized businesses (SMBs) globally were asked about the effects of COVID-19 on their business.
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However, despite the negative forecasting, overall more businesses remain optimistic about opportunities as a result of changes to their business model following the pandemic. 30% of businesses have seen an increase in profit margin (versus 26% which saw a decrease), 36% have seen an uptick in customers (versus 27% which saw a decline), and just over a quarter (26%) believe they are better positioned to enter new geographical markets, as opposed to 20% which say they aren’t.
Businesses have had no choice but to welcome change with over a third (36%) suggesting that COVID-19 has increased their ability to innovate. Around 84% of organisations have had to alter their operations to appeal to a broader target market with adapting digital strategies forming a core part of this. Of the businesses that made changes, 78% specifically diversified their payment offerings and as a direct result, 66% saw an increase in sales.
The importance of a seamless online checkout has been reinforced with the introduction of new consumer payment preferences. Some 37% of online brands have already integrated at least one new payment method into the checkout whereas 55% plan to introduce at least one more in the near future. With an increase in the variety of different payment methods used by consumers since the outbreak of COVID-19 — 37% of businesses have noticed an increase in the percentage of consumers using digital wallets and 20% have observed customers using crypto more often — over half of businesses (57%) now view their payment offerings as a priority.
As with all shifts, consumers are also thinking differently about how they make payments and what they use them for. Over a quarter of businesses surveyed (32%) think consumers are using new methods to track their spending more accurately, while 27% believe consumers are re-evaluating the role technology plays in their lives. As people are becoming more familiar with digital payments, according to businesses almost a third (29%) of consumers are valuing a more seamless experience online.
Paulette Rowe, CEO, Integrated and E-commerce Solutions, Paysafe Group, comments: “The shift to online has forced retailers to take a fresh look at the checkout experience and assess whether it is user friendly as well as secure. Though many SMBs believe the future is less than positive, there is still hope, as we have seen that some of the simplest innovations can spark growth. Now that customers are more willing to use different payment methods there is an opportunity to innovate at the checkout. Creating a seamless digital experience will help eCommerce services appeal to all generations and give businesses that all-important competitive edge.”
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