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10 million Asia-Pacific small businesses to participate in Visa’s Global Programme to spur recovery through digital commerce
Visa is introducing a range of programmes and solutions to help small- and medium-sized enterprises (SMEs) drive efficiency and sales by accepting and making payments digitally to meet increased demand for cashless payments – both online and in-store. Visa also formed the Visa Economic Empowerment Institute (VEEI) focused on economic and societal issues, including pandemic challenges SMEs face and closing racial and gender opportunity gaps.
The 10 million pledge is part of a global programme that will see Visa supporting 50 million small businesses worldwide. Small businesses will play a vital role in helping communities recover – they account for more than half of global employment and are among the most affected by the pandemic. In the Asia-Pacific, SMEs account for more than 90 per cent of businesses and employ 50 per cent of the workforce.
In addition to the economic impacts, COVID-19 is accelerating the use of digital commerce experiences, from people seeking new ways to pay that do not involve touching a terminal to a boom in e-commerce, as stay-home orders result in shopping online instead of in-store. In the Asia-Pacific, 41 per cent of consumers made five or more e-commerce transactions in the past three months. Three-quarters of consumers in the region have said they will keep using digital payments instead of going back to cash, even after the global pandemic has subsided.
“Commerce across the eAsia-Pacific is shifting further into digital in the wake of COVID-19, from more people ordering essentials online to people looking for secure, touchless ways to pay in person,” said Chris Clark, regional president, Asia-Pacific, Visa. “Visa’s role as a payments network means we can help SMEs adapt to these new ways of managing and growing their business, ensuring that these crucial players can recover.”
In Vietnam, to encourage consumers and small merchants to adopt digital payments in an easier and more convenient way, Visa has signed an MoU with NextPay to promote digital payment solutions via the Mobile Point-of-Sale (mPOS) with a goal of expanding to a community of 300,000 merchants by 2023. In the “Cashless Day” initiative by the State Bank of Vietnam, Visa in partnering with NextPay, has provided 100 free mPOS terminals for the first 100 merchants to register for the programme, as well as a 50 per cent discount on mPOS terminals and one-year free use of NextShop – a business management software – for others who sign up. Small merchants registering for a three-year service package of the software were also offered a 70 per cent discount. The programme received positive support from many small merchants and businesses.
|Resources to help small businesses accept and make digital payments, build an online presence|
Dang Tuyet Dung, Visa country manager for Vietnam and Laos, said, “At Visa, we are committed to advocating Visa’s global initiative to promote and strengthen the position of small businesses. By supporting local SMEs, which account for 98 per cent of all enterprises in Vietnam and contribute approximately 40 per cent of GDP, we are proud to be part of the worldwide effort to mitigate the impact of COVID-19, and spur continued economic growth at a time when communities need it most.”
To help small businesses, Visa is focusing initially on four strategic areas to promote digital commerce and economic growth, with plans to continue to create products and services as the needs of entrepreneurs change over time. These areas include:
Today’s announcement follows a global commitment from the Visa Foundation announced in April, to provide $210 million in COVID-19 relief funding to address the longer-term needs of the small and micro business community over the next five years.
As the trusted engine of commerce, Visa is committed to using its global network to help the world adapt, rebuild, and get everyone back to business.
|SMEs, which account for 98 per cent of all enterprises in Vietnam, wil have a chance to receive Visa support|