Over 80pc of surveyed small- and medium-sized Enterprises (SMEs) have started accepting digital payments in the last two years, according to a new Visa report titled, ‘Value of Acceptance: Understanding the Digital Payment Landscape in Ethiopia’. Citing increased convenience, the report indicates reduced fraud risk and improved efficiency as factors in the uptake. A substantial 66pc of these SMEs believe that investing in digital payment technologies will support future business growth. The study, conducted by 4Sight Research & Analytics, is based on face-to-face interviews with 259 SME owners or managers. The report adds that the momentum is expected to continue, with 92pc of SMEs using digital payments reporting satisfactory support from the government and major institutions, as well as quicker payment processing. This satisfaction is encouraging 64pc of SMEs to consider investing in additional payment technologies. While 59pc of SMEs are neutral about fraud risks, 64pc plan to invest in payment technologies, signalling a market ready for digital economic growth. Digital payments would boost revenue through a wider customer base, enhance customer satisfaction, and reduce operational risks. It is projected that the transition to a digital economy can generate one to two percent annual GDP growth, with a one percent increase in card usage potentially generating an average 67 billion dollars annual increase in goods and services consumption across 70 countries and territories.
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