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1 in 5 Irish SMEs fear that their future viability is at risk

Written by Robert McHugh, on 5th Aug 2020. Posted in General

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Approximately 1 in 5 (18%) of Irish small to medium enterprises (SMEs) believe that their future viability is at risk due to the commercial impact of COVID-19, according to new research commissioned by Visa.

The “Visa Back to Business” study assesses the dramatic shift to digital commerce in response to the pandemic, driven largely by changing consumer expectations for a safe and contactless payment moment.

The study reveals fundamental shifts in Ireland’s retail landscape post lockdown with almost 7 out of 10 (68%) shoppers admitting to using cash less, preferring digital payment methods. 

The research shows that contactless payments have surged in popularity, with more Irish shoppers (70%) using contactless more often in light of COVID-19 compared to any other market surveyed. The research also found that over half (57%) of Irish shoppers would be likely to switch stores so they can tap to pay for goods and services. 

Consumers also embraced online shopping with the research finding that during lockdown, 28% of shoppers bought groceries or household items online for the first time.

Many small businesses have been quick to adapt to these trends with 31% of Irish SMEs revealing that they are accepting less cash or have stopped accepting cash altogether.

Approximately a quarter (24%) of SMEs surveyed sold products or services online for the first time as a result of COVID-19, with 17% now offering home delivery to customers as companies adopted new practices to maintain business.

Furthermore, the report shows Irish SMEs have seen a wave of support from the public with 70% of companies surveyed highlighting that their local community had rallied behind their business.

Commenting on the research findings, Ireland Country Manager at Visa, Philip Konopik said, "In the face of the extraordinary challenges caused by COVID-19, many Irish SMEs have shown entrepreneurial spirit, finding new ways to keep serving consumers. Nevertheless, as the economy re-opens, many will need our help to recover and operate in a new economic environment. That’s why Visa is working with partners to offer small firms across Ireland the tools, advice and expertise so they can adapt their business for the new retail landscape and take advantage of ecommerce and digital payments."

Source: www.businessworld.ie

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