Just pay easily and quickly at the bakery nearby or for the flowers for Mother’s Day: digital payment for small businesses to pay in shops via card, smartphone or smartwatch makes that possible, and even losing coins or banknotes are a matter of the past. Digitalization offers many opportunities for small and medium businesses (SMBs). In order to persist and to be competitive, flexible adjustment and digital transformation is crucial.
This is also due to the fact that customers are increasingly not only informing themselves about products online but are also using smartphones to search for physical stores or to make contactless payments (e.g., via payment apps such as Apple Pay or Google Wallet). Even though events such as the COVID-19 pandemic have significantly advanced digitalization among SMBs, there is still room for improvement: SMBs are still far behind large companies when it comes to digitalization. According to the study “DESI 2022” by the European Commission, in 2021, only 55% of small and medium-sized businesses reached at least a basic level in the adoption of digital technologies.
More than half of EU-citizens prefer digital payment
Across Europe, SMBs make up the majority of all businesses and therefore, are very important for the European economy. How important, the European Union (EU) has also determined: The EU wants to provide SMBs with greater support in three areas – including sustainable and digital transformation. Digital payment for small businesses are one but important part of this. Let’s take a look back: At the height of the COVID-19 pandemic, the ability to make and accept contactless payments was often even a matter of business survival.
Studies showing what impact the pandemic had on the demand and growth of cashless payments: For example, the study “SPACE 2022” by the European Central Bank says, that contactless card payments at the POS (Point of Sale) increased considerably in three years – from 41% of all card payments in 2019 to 62% in 2022. Also 55% of Euro area consumers expressed a preference for cards and when paying in a shop. No matter if you are using your smartphone, smartwatch or the classic debit or credit card, digital payment services have now arrived in our society and will continue to be an important part in the future.
Meet your business need with less time and more speed
Offering digital payment is not alone a plus to fulfill your customers’ needs, such as comfort, speed, or even hygiene thanks to contactless digital payment for small businesses. It also makes your business more interesting for a broader group of potential customers. Furthermore, it is much faster. All your customers must do is quickly hold their card or smartphone up to the reader. On the smartphone there is an app where debit or credit cards are stored and protected by pin, face ID or fingerprint. So, your customers no longer have to spend a lot of time looking for cash.
Speaking of cash: It's a relief for you, too. Because you no longer have to keep so much small change on hand or spend a long time at the checkout in the evening, after closing time. Digital payment solutions also save your business a lot of time. In addition, you have the advantage that with the offer of cashless payment you do not have to take into account other currencies, for example, should tourists be among your customers. Another point is that neither your customers nor you must wait unnecessarily long in lines at the bank.
Eastern European banks promote the digitalization of SMBs
The progress of digitalization is already evident in Europe. For example, the study by the European Central Bank shows, that in the Euro area already in 81% of financial transactions in 2022 it was possible to pay with non-cash instruments. If we take a closer look at certain Central and Eastern European countries, we can see that here, too, the potential of digital payment solutions have been recognized. In addition to the goal of the EU, banks in Slovakia, Ukraine, and Hungary for example have also promoted digital payment for small businesses and thus also the digitalization of SMBs. These times are an ideal chance to transform!
The experts from Telekom Business Europe are supporting you with innovative small business it solutions – whether it is for small, medium, or large businesses. In Croatia for example, we have created a way to offer digital payment for small businesses with “Premium fiscal cash register”. Even in other countries we closely work together with people responsible to digitalize. Whether it is digital payment, online marketing for small businesses, building an online presence with the help of a distinctive website or e-commerce – we extend a helping hand for your success.