Here are the week’s main news stories in the world of small business and e-payments:
E-payment technology market value to treble between 2017 and 2026
The global electronic payment system market reached $256 billion in 2017 and is forecast to hit a valuation of more than $793 billion by the end of 2026, according to a research report by Future Market Insights. The software platforms segment of the market is anticipated to grow at a CAGR of 13.8 per cent between 2017 and 2026, to reach a valuation of more than $563 billion by the end of 2026. In the payment modes category, the credit cards segment is anticipated to grow at a significant rate due to higher global adoption, and is estimated to pass $270 billion by the end of the period.
UK small businesses plan ahead despite Brexit uncertainty
Two-thirds (68 per cent) of small business owners have plans to grow their business over the next three months, with 59 per cent of those who fear they will struggle to survive in an uncertain year working on positive plans to turn their business around, according to new research from Hitachi Capital Business Finance. The findings come at a time when the proportion of UK small businesses predicting growth has hit a five-year low (down from 39 per cent to 34 per cent). Nonetheless, despite prolonged Brexit uncertainty, the new Hitachi data reveals a tenacity and determination among the UK small business community.
Vietnam mobile payment market expected to hit $70.9 billion by 2025
The mobile payment market in Vietnam is projected to reach $70.9 billion by 2025, growing at a CAGR of 18.2 per cent from 2018 to 2025, according to a report by Allied Market Research. Near Field Communication (NFC) payments are expected to grow at the highest CAGR due to investments that have been made in digital infrastructure and e-payment services. Major drivers included changes in customer preference from cash to digital payments, a surge in need for immediate transactions in Vietnam, increased penetration of the internet and smartphones and the growth of e-commerce.
eBay reports UK small business surge
eBay has seen a huge surge in UK sellers signing up to its online marketplace over the past year, with almost 37,000 new sellers joining in 2018, the biggest year of growth since 2015. eBay’s Small Business Barometer reveals that the power to choose working hours (33 per cent) and make their own decisions (30 per cent) are the top motivations for UK entrepreneurs. The future feels bright for start-ups who are using eBay with 43 per cent of UK small businesses positive about their growth prospects in 2019, compared to just 22 per cent who are pessimistic. In addition, 62 per cent of UK small business owners plan to increase their investments in 2019. Digital retail is likely to play a key role with 22 per cent of small business owners expecting most of their growth to come from online sales in the coming year.
Mastercard partners with social enterprise
Nairobi and US-based social enterprise Angaza has partnered with Mastercard to expand payments options for its customers who acquire solar energy-powered equipment on credit but who are largely financially excluded. Angaza enables distributors to sell solar home systems, water pumps and clean cookstoves to low-income off-grid clients. The deal will see customers of the social enterprise platform make digital payments using QR code technology, adding to already existing mobile money and cash options. The global launch follows Mastercard’s first successful pay-as-you-go API in Uganda last year.
New mobile wallet added to SE Asia payment network
Malaysia's Axiata Group has signed up to Singtel's plans for a cross-border electronic payment network. Axiata Digital's Boost Malaysia wallet will join the VIA alliance, which telco Singtel launched last October alongside its Thai associate telco AIS and digital bank Kasikornbank to support simple electronic payments across Southeast Asia. The new partnership adds Boost's 3.7 million customers and 66,000 merchant outlets to VIA, which now accepts payments made between the Singtel Dash e-wallet and AIS Global Pay. This is Dash's first foray into a non-associate market, although Singtel had previously said it planned to roll out VIA across regional associates in Thailand, India, the Philippines and Indonesia.