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The Future of Commerce for SME's presented by Visa
By bira

Digital transformation of SME’s: The future of commerce

The insights provided in this paper are for small and medium-size enterprises1 (SMEs) in the United Kingdom (UK), with a focus on helping businesses grow and improve the customer experience through promotion of technology and digital commerce. We hope you enjoy reading it!

Fuelled by smart technologies, mobile devices, and 24/7 connectivity, the way consumers browse, shop and pay has been moving toward digital means: UK consumers will spend £106.46 billion ($141.93 billion) online in 2019 (+10.9% vs 2018). This will make up 22.3% of all retail spend, a proportion that will reach 27.9% in 2023. In 2019 mobile commerce will grow 16.7%, passing £50 billion ($66.66 billion) for the first time. In 2020, mobile commerce sales will account for more than half of all retail ecommerce sales, growing 15.3% to total £58.89 billion ($78.51 billion). Smartphone commerce already accounts for the majority share of mobile commerce, and that share is expected to increase from 58.9% in 2019 to 71.2% by 2023.

In response to these evolving consumer preferences, commerce itself is undergoing a profound transformation, with businesses looking more at digital solutions to improve sales, acquire new customers, and reduce costs. This presents opportunities for SMEs, the 5.7 million firms which make up the vast majority of enterprise in the UK3. According to a new 2019 Visa-commissioned Maru/Matchbox survey4 (“the survey”) only half (54%) of SMEs sell their products and services online, with 27% of their sales coming from the online channels.
As SMEs are the focus of this research, it’s worth taking a moment to understand the size and scale they represent. SMEs are an undisputed engine of the nation’s economy. According to the UK Parliament Business, Energy and Industrial Strategy Committee5, SMEs make up 99.9% of all private sector businesses in the UK and employ 16.3 million people, or 60% of the UK’s private-sector workers.

Download the full report and guide to the Digital Transformation of SME’s, presented by VISA to discover insights into ‘Enabling Consumer Discover and Marketing in the Digital Age, Enhancing the Customer Experience, The Impact of Digital Payments and other digital transformation tips for small retail businesses.
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