Visa (V) Continues to Aid SMBs, Unveils Promotional Programs
Visa Inc. V is introducing a set of programs and abundant resources in order to help recover small and micro business (SMB).
In the world of business, SMBs represent one of the worst-hit categories by the COVID-19 breakout. These small-scale units are looking for options to offset the business losses and 60% of those is already taking necessary steps into that direction.
With no certainty of the COVID -19 medication or vaccination anytime soon, there seems no time line for the pandemic to get cured. Despite the continued uncertainty on this front, 68% of the global SMBs is looking forward to the winter holiday season as an opportunity to recoup some of the business losses. Visa is handholding around 50 million SMBs by digitally enabling them to service their customers as a large chunk of shopping shifted to online.
The trend of digital payments is here to stay even after the ongoing pandemic subsides. This can be gauged from the favorable sentiment building around the digital platforms and with growing customer satisfaction. Small business firms are willing to invest in the technology required to advance their payment systems while proprietors consider digital channels to be the new normal for their businesses going forward.
The AlixPartners consumer survey found that 45% Americans plan to do the majority of their holiday shopping online compared with 30% last year. Thus to prepare for this holiday sales season, more than a quarter (26%) of SMBs are digitizing parts of their business and Visa is providing the necessary assistance.
Visa realizes that the global economy won’t bounce back until small businesses are revived and is therefore continuously aiding SMBs to ease their COVID-19 induced difficulties. The company enables digital payments at more than 61 million merchant locations around the world and it its priority is to help micro and small businesses thrive at every step since SMBs form its huge customer base.
In June, Visa announced a new online resource for small businesses, Visa Small Business Hub, to help entrepreneurs build stronger customer relationships and expand their businesses. Also in the same month, Visa committed to digitally enable 50 million micro and small businesses worldwide in the wake of the coronavirus pandemic and economic crisis. In April, the Visa Foundation announced a commitment of two programs totaling $210 million to support small and micro businesses for addressing an urgent need from local communities following the spread of COVID-19.
Another player in the same space, American Express Co. (AXP) , is a huge patron of small businesses and has been promoting these entities since the past 10 years with its movement of Small Business Saturday, which was created on Nov 27, 2010. The campaign was launched to help small-time business units gain additional exposure and change the way consumers shop within their own community during the holiday season.
Since then, the backing of small businesses by American Express Co. AXP has seen a steady rise. Recently, American Express committed $200 million to small and micro businesses.
Visa currently carries a Zacks Rank #3 (Hold). Year to date, the stock has gained 5.1% compared with its industry ’s growth of 1.7%.
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