65% of Oman retailers see increase in revenue and customer traffic since accepting digital payments: Visa study


Visa’s Value of Acceptance study also reveals 54% of Oman merchants surveyed say accepting cards and mobile payments essential investment for business growth

Seventy-eight percent (78%) of digital payments accepting merchants would recommend digital payments to cash-only merchants

Muscat: Visa (NYSE:V), a world leader in digital payments, has unveiled the results of an independent study titled ‘Value of Acceptance’, which explores merchants’ attitudes towards digital payments and the impact of digital commerce on small businesses and retailers in Oman.  According to the study, 65% of Oman retailers merchants claimed increased revenue and higher customer footfall from accepting digital payments.

The survey gathered insights from two groups of Oman-based merchants – those who have accepted digital payments for 1-4 years, and retailers who exclusively deal in cash transactions. The top five store types represented in the survey sample include quick service restaurants, mobile shops, cafes, beauty salons/barber shops, and fashion/shoe stores with sizes including nano (2 or less employees), micro (3-10 employees) and small (11-49 employees) businesses. According to the study, digital payments, and cash together account for over 95% of payments accepted among surveyed digital payment-accepting small businesses, with an equal proportion coming from both payment methods.

Digital Payments: Business Growth Driver

The findings from Visa’s study show digital payment acceptance is an important driver in the growth of small businesses, with 54% of digital payment-accepting merchants claiming acceptance of payment through card and mobile wallets is an essential investment that significantly contributes to their business growth.   Seventy-eight percent (78%) of digital payments-accepting merchants would even recommend digital payments to cash-only merchants.

Challenges with Cash Only Acceptance

While cash is associated with convenience, wide acceptance and easy refunds, more than 20% of cash-only merchants have lost a transaction because the customer was not carrying cash.  Beyond acceptance, managing cash also presents accounting challenges according to almost one-third (28%) of cash-only merchants (as well as 38% of merchants that accept digital payments).

As a result, 41% of cash-only merchants surveyed may or will invest soon in digital payment technology so they can begin to offer consumers a better payment experience.  Forty percent (40%) of these merchants expect increased footfall and revenue after they start accepting digital payments.

Manish Gautam, Visa’s Country Manager for Oman, said: “As Oman forges ahead with its digital commerce agenda, our ‘Value of Acceptance’ study underscores the transformative power of digital payments for Oman’s retail sector. There remains significant opportunity in Oman for digital commerce and we will continue to work with our local partners to support the government’s cashless agenda for the benefit of small businesses and the wider economy.”

Gautam added: “Beyond the benefits of security, speed, and convenience, digital payments also provide invaluable data insights. With more consumers turning to digital payments, merchants can use data to tailor client communication with relevant offers, implement loyalty programs, and enhance the overall customer experience. This is vital information that can increase business profitability and efficiency.”

Merchant Expectations of Digital Payment Provider

Merchants that already accept digital payments expect a range of value-added services from their digital payments provider to enhance their payment infrastructure and offerings for customers.  The most frequently cited include: (i) more secure (74%), convenient (66%), and efficient (66%) B2B payments; and (ii) access to data for identifying and targeting customer groups (66%). Additionally, multi-currency processing (30%), mobile payment acceptance (like Visa’s Tap to Phone) (27%), and fraud detection and prevention (17%) were revealed as areas where payment providers can further add value to local businesses.

About the Study

Visa commissioned 4SiGHT Research & Analytics to explore the impact of digital payments on small retailers and gauge of their level of openness to digital payment options among those currently accepting cash-only payments. 4SiGHT interviewed 250 nano, micro, and small retailers in December 2023 out of which 41% accepted cash payments only and 59% accepted cash and digital payments. The retailers surveyed were based in Muscat and Nizwa. The face-to-face interviews took approximately 15 minutes and included a mix of nationalities and genders, representative of Oman.

About Visa Inc.

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at About Visa, visamiddleeast.com/blog and @Visamiddleeast.

more recommended stories

Terms of Use:

  • This website Arabian Daily is an individual’s property, not used for any commercial or sales purposes. What you see here are one’s random thoughts in action. I, by no means, endorse any product or party through this, unless stated explicitly.
  • All work you will find here is copyrighted unless stated otherwise. No part of this work can be reproduced in any way with the exception of a) if you share our work, it should link back to this website; b) if you quote any part of our work, it should be properly credited to us with a link to this website.
  • All images used on this website have been taken from open source image websites on the Internet. If any of them are copyrighted to you and you want us to take them down or add credits, please feel free to contact us here, or by using the contact form on this page.
  • The views expressed on Arabian Daily are solely ours. They do not represent any party or any particular school of thought. This website does not promote racism in any form.
  • Privacy Policy:
    This website will respect the readers’ and the writer’s privacy. We do not sell any of their personal or contact information to another company. We do not put your information on spam lists. Also, and more importantly, we are not responsible for the privacy practices of any of our advertisers or website commenters.
  • Reserve Rights: We reserve the right to change the focus on this website, to shut it down, sell it or to change the terms of use at our own discretion.