Belgrade, December 9, 2021 – Contactless payments have had a lasting impact on global trade and consumer behavior, giving them the opportunity to shop safely and securely during a coronavirus pandemic. Nearly half of consumers (44 percent)[1], according to a Visa global study, said they would no longer shop at stores that require contact with a cashier or payment device when making a payment. This data shows the challenge for domestic businesses, since according to a new Visa’s survey, "Digital commerce - a click away"[2], half of them (50 percent) use only the traditional POS terminal for card payments, which requires entering a PIN code.
However, seven out of ten micro, small and medium enterprises (70 percent) in Serbia are open to new technologies and ready to accept contactless payments via a mobile application, according to research.
Almost all surveyed respondents from medium businesses (98%), as well as 80% of them from small and 67% from micro enterprises said that such application could make the payment acceptance process easier for their firm. Most respondents see the benefits of using this app in comparison to handling cash, citing convenience (59%), safety in terms of Covid-19 (46%) and mobility (44%) or the possibility to accept payments everywhere their smartphone is as its key advantages. This survey also showed that cash only is mostly used in micro companies, while both cash and card acceptance rises with the companies’ size.
„Readiness of the SME sector to expand usage of traditional POS terminals with smartphones, is a strong indication of their need for more practical mobile acquiring solutions. Tap To Phone technology will give businesses a low cost, convenient and secure way to accept contactless payments and stay competitive in the new normal economy. We are already seeing the positive effects of this technology across the CEMEA region and we are very keen on helping further digital transformation of businesses in Serbia”, said Vladimir Djordjevic, General Manager at Visa, SEE.
When it comes to using a personal or company’s mobile phone, only 16 percent of them has willingness to use personal phones for this type of payment acceptance.
When thinking about how their clients could benefit from this method in comparison to cash payments, companies believe it is convenience (53%), trendiness (50%), safety in terms of Covid-19 (43%), using an innovative/modern way to pay (42%) and speed (25%). On the other hand, many are still skeptical about several things: additional costs and the fact that this is still a new technology about which they, but also their customers, are not much familiar with.
"Digital commerce - a click away" was conducted as a regional perception study among micro, small and medium businesses in Serbia, Montenegro, North Macedonia, Bosnia and Herzegovina and Albania. Serbian SMEs have shown the highest level of interest in technology that transforms mobile phones into POS terminals and makes them eligible to accept contactless payments (70%), second ranked are businesses from Montenegro (58%), followed by North Macedonians (53%), Albanians (48%), and businesses from Bosnia and Herzegovina (24%).
To support the SMEs sector, Visa, in cooperation with Raiffeisen Bank, launched the very first Tap to Phone solution (TTP) in Serbia, last week. Bank’s application based on Tap to Phone Visa’s technology transforms Android smartphones supporting NFC into terminals accepting contactless payment. As the great advantage, this technology does not require the retailer to purchase additional hardware and thanks to the extremely secure EMV standard and encryption technology, it is as safe to use as a traditional payment terminal.
Visa's Tap to Phone technology is already live in more than 35 global markets lighting up 35.000 smart devices for contactless payments, with the number of sellers using Visa Tap to Phone has grown by 1800% over the past year in CEMEA region (Central Europe, Africa and Middle East).
[1] Visa Back to Business Study, 2021, 5th edition
[2] In May 2021, Visa conducted a perception study called "Digital commerce - a click away". among 200 micro, small and medium enterprises in Serbia, Montenegro, Bosnia and Herzegovina, Northern Macedonia and Albania. The study was conducted to examine their relationship to non-traditional types of payments.