Earlier today, PayPal, FNB and World Wide Worx presented the findings of a research survey that looked at how roughly 400 South African SMEs were adopting more online payment options in the wake of the pandemic, with a specific look to whether these businesses will pursue cross-border payments in future.
As we have seen over the past two years the surge in ecommerce and digital transformation has resulted in companies and businesses looking to embrace digital tools and create a larger online presence.
Perhaps unsurprisingly, one of the outcomes from the research is the fact that the majority of organisations are starting to introduce more online payment methods, as well as becoming more comfortable with their implementation.
“Nearly two thirds (64%) of businesses have introduced more online payment methods in response to the pandemic, enabling more customers to pay via the methods they want. Another 22% intend to introduce more methods,” explains Arthur Goldstuck, CEO of World Wide Worx.
According to Mark Mwongela Ngungi, PayPal Sales Development director for Africa, this speaks to the maturing of the sector and businesses’ drive to provide their customers with the payment methods they prefer.
Illustrating this maturity, the report says that close to four out of every five businesses surveyed noted that their customers are comfortable shopping online and making online payments at 79 percent.
Accepting orders through online shopping carts has also had an overall business impact on 71 percent, responding businesses indicated, which is said to show the power of automation that ecommerce platforms can provide.
Looking at the desire to move to facilitating payments outside of SA, the survey found that almost a third of the businesses have started targeting international customers since the pandemic started.
This segment still needs to mature though, with 79 percent of South African SMEs stating that they do not sell their products internationally.
“Operating internationally can be challenging for small businesses, which lack education on market opportunities outside South Africa’s borders, aren’t familiar with fulfilment methods and need to become more comfortable with global payment methods,” highlighted Ngungi.
Some of the hurdles identified at the moment include supplier issues at 38 percent and delivery to customers at 35 percent. Interestingly though connectivity, as Goldstuck mentions, was only mentioned by 4 percent of businesses.
As these hurdles are overcome, it looks like the only barriers to cross-border payments will be the will or desire of the businesses. As more local SMEs look further afield, however, we could see a surge in that metric.
[Image – CC 0 Pixabay]
