A seismic customer shift, wherever and however you operate
In Italy, Magda and Alessandro Ciccioni built their business, Castello di Castellengo, on the abandoned vineyards of upper Piedmont. Unfortunately, when the pandemic hit, customers no longer could visit the winery. The solution? A digital transformation to take their products directly to their customer instead.
“For us, the pandemic meant the fear of losing all our sales for a year,” says Magda. “People no longer came to buy our products, and the restaurants - our regular customers - were all closed. But with the help of Vidra, one of Visa’s eCommerce partners, we were able to launch our eCommerce offering in a very short period of time. Now we reach more people than ever before, and it’s much easier to organise visits to the castle and cellar, too.”
Business owners like the Ciccioni’s, who successfully integrate face-to-face and digital methods of shopping have 90% higher customer retention rates than those that don’t1. And while it may have been a pandemic that prompted Magda and Alessandro’s move, the world is now a different place for payments and consumer choice. They, like many other small business owners, won’t be going back to their old ways.
Commerce is undergoing a revolution, as online sales continue to grow and smartphone ownership reaches near total coverage (more than 26% of retail sales took place online in the UK in July 20222, and 94% of the UK population will own a smartphone by 20253).
This shopping transformation has also opened up a wide range of payment options to consumers. By the end of 2022, more than half of all purchases in the UK will be made using contactless payments4. What’s more, almost two-thirds of all money spent, and half the transactions, take place without a physical card present. Contactless digital wallet payments grew by more than 63% in Europe in 2020, to account for 7.2% of point of sale payments5, and this is expected to reach 14% by 20246
So, even those businesses that are known for more traditional payment methods, such as manufacturing, legal services and accounting, and even window cleaning, are all rewriting their digital futures.
The foundations of the European economy
Businesses like Castello di Castellengo are more than just touching stories. Their successes are crucial to the European economy, which is built on small and medium-sized enterprises (SMEs). These SMEs are a vital component of the private sector, making up 99% of all businesses in the EU, employing around 100 million people and accounting for more than half of Europe’s GDP7.
So, when small businesses succeed, everyone in the region benefits.
Diminishing obstacles and lowering barriers to entry
While online commerce has moved quickly, online fraud hasn’t been far behind. But the financial community is working hard to stay ahead. In 2021, Visa prevented $25 billion worth of unauthorised payments globally8 and has invested close to €9 billion in the past five years in cybersecurity and fraud prevention. And it’s working, with card-not-present fraud rates currently around 0.1% of transactions9, some of the lowest for any payment type.
You can read more here about some of the innovations that are helping European small businesses grow their revenue securely and with confidence through new forms of digital payments.
Stay current with the latest payments insights from Visa Navigate Europe - subscribe today.
Case studies, comparisons, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa Inc. neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.
All brand names, logos and/or trademarks are the property of their respective owners, are used for identification purposes only, and do not necessarily imply product endorsement or affiliation with Visa.
1 V12 Data (2021) 25 Omnichannel Statistics Every Marketer Should Know https://v12data.com/blog/25-amazing-omnichannel-statistics-every-marketer-should-know/
2 Office for National Statistics (2022) Retail sales, Great Britain: July 2022 https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/july2022
3 Statista (2021) Forecast of the smartphone penetration in the United Kingdom https://www.statista.com/forecasts/1147023/smartphone-penetration-forecast-in-the-united-kingdom
4 The Accountancy Cloud (2021) The Biggest Digital Payment Trends 2022 https://theaccountancycloud.com/resources/blogs/digital-payment-trends-2022
5 Bdaily (2021) E-Wallet Use Soars in Europe https://bdaily.co.uk/articles/2021/10/25/e-wallet-use-soars-in-europe
6 Bdaily (2021) E-Wallet Use Soars in Europe https://bdaily.co.uk/articles/2021/10/25/e-wallet-use-soars-in-europe
7 European Commission, Internal Market, Industry, Entrepreneurship and SMEs (https://single-market-economy.ec.europa.eu/smes_en
8 https://usa.visa.com/about-visa/newsroom/press-releases.releaseId.16421.html#:~:text=Visa%20Prevents%20Approximately%20%2425%20Billion%20in%20Fraud%20Using,Advanced%20Authorization%20helps%20drive%20commerce%20and%20consumer%20confidence
9 Visa Fraud Data 2021
Share Feedback