Dubai: Visa, the payments company, has launched a “Where You Shop Matters’ initiative that aims to support entrepreneurs by encouraging consumers to support small businesses in the UAE.
The new initiative will help support small businesses through the Visa Small Business Hub, a merchant platform providing tools and information on how to start, run and grow small businesses. The Hub will also feature merchants who have built up their businesses to the next level.
Visa has also published the COVID-19 CEMEA Impact Tracker highlighting the recent effect the pandemic has had on consumers and small merchants in the UAE.
The findings of the report highlight increased anxiety amongst UAE merchants with 89 per cent of small businesses noticing a decrease in average consumer spending during COVID-19. As consumers stay away from all but essential retail, the impact of the pandemic on merchant revenues has been high with 83 per cent of those surveyed stating revenues have been negatively impacted.
First-timers
During the pandemic, many consumers in the UAE started shopping online for the first time, primarily for essentials. Two-thirds of UAE consumers surveyed say that COVID-19 has led to their first online grocery purchase, while 70 per cent have made their first online purchase from pharmacies. Overall, the report points to a shift to online commerce, with cash transactions being replaced by digital payments.
Shahebaz Khan, Visa’s General Manager for UAE, said: “These changes present challenges but also enormous opportunities for all merchants, including small businesses. It is vital that merchants across the globe understand the shift in consumer behavior and adapt accordingly."