Small and Mid-Sized Merchants’ Top Technology Adoption Barriers Revealed: MasterCard Study
South African small and mid-sized merchants cite cost (34 percent), data security concerns (23 percent) and lack of knowhow (21 percent) as the greatest barriers to technology adoption, according to the new MasterCard Merchant Scope study.
The study investigates how small and mid-sized merchants from the retail, services, restaurant and hospitality industries use technology, what barriers reduce their likelihood of technology adoption, and the business challenges they expect technology to ease.
“When the technology that can help a small to mid-sized merchant grow is too expensive, or if data security concerns outweigh the benefits of new technology adoption, it becomes difficult for them to plan for growth or compete against larger merchants,” says Mark Hearne, Head of Business Development, MasterCard, South Africa.
The study found that while over two-thirds (72 percent) of surveyed merchants have an online presence, only one in five (20 percent) offers their customers the option to buy their products and services from an e-commerce website. Of the four merchant categories, hospitality merchants had the highest e-commerce presence at 45 percent, followed by retailers at 20 percent. Just nine percent of service merchants and six percent of retaurants have an e-commerce presence.
Hearne says that in the current retail environment, the consumer shopping experience starts long before entering a store, usually with research conducted online. This gives merchants the ability to make their goods or services available for purchase online too, and not just in-store.
“As tech-savvy consumers take advantage of emerging technologies like mobile devices or computers to access the internet to research their intended purchase, find great deals, or more frequently to purchase their products, businesses of all sizes should create an ‘always on,’ omni-channel presence to attract new and repeat customers,” he says.
Further findings reveal that sixty-two percent of payments are made electronically (debit, credit, via a mobile/smart device or EFT). Cash has taken a back seat with just 34 percent of the payments made this way. Cheque payments have all but disappeared from the merchant payment landscape, with only four percent of payments currently made this way.
“This is clear evidence that South Africa is moving towards achieving MasterCard’s vision of a cashless society. Less cash in the system benefits both merchants and their customers, and it significantly reduces the costs and risks of doing business as accepting and handling cash is expensive and unsafe,” says Hearne.
For more detailed findings, visit the interactive Merchant Scope website and research report titled, “Merchant Scope: Small to Mid-Sized Merchants Seek Competitive Technology in Omni-Channel World”.Visitors to the website can also create customised reports that show how businesses of a particular industry, market, or size responded to the survey questions, and get tailored insights for the segment that matters most to them.
Picture sourced from www.criticsandbuilders.typepad.com
Four people, including a woman, escaped unhurt after...
On Sunday, the whole of South Africa cheered...
Having initially focused on the budget motoring section...
I have spent four days recently at the International Boys' School Coalition Conference in Cape Town...
DebtSafe advises consumers to save on monthly expenses. The company, specialising in Debt Review, recently released its results of a survey about spending and saving habits of consumers in South Africa.
Male sexual enhancement pills are considered to be one of the most counterfeited drugs in the world and according to the latest statistics, South Africans are among the biggest consumers of black market aphrodisiacs.
The hospitality industry has often suffered criticism for being slow on the technology uptake...
Democratic Alliance (DA) Shadow Minister of Environmental Affairs, Thomas Hadebe, has said that party will launch an investigation with the Green Scorpions into the flowing of raw sewage water into the Swartkops River, which has amounted to “192 mega litres” since a pipe burst 15 weeks ago.
An application by various media houses to have Parliament show uninterrupted proceedings of events taking place in the Chamber, has been rejected by the Western Cape High Court.
- Port Elizabeth police seek public's assistance in locating rape suspect
- Angry taxi drivers block off NMMU Missionvale Campus entrance over shuttle service
- The Great Moscow Circus Big Top Goes Up at The Boardwalk!!
- Two alleged gangsters arrested just after shooting dead Bethelsdorp man
- Replacing Pravin Gordhan, or his deputy, would carry a heavy cost