According to br-cn.com reports on August 13, visa, an internationally renowned credit card company, and “American Market Intelligence” (AMI) released a joint survey data show that the proportion of small and medium-sized enterprises in Brazil digital applications is very low, only 10% of the companies surveyed accept online payments, with most payments for online sales made by wire transfers and debit CARDS.
The data collection was conducted from July to August 2018, according to the report. According to the survey, only one-third of small and medium-sized enterprises in Brazil use social networks or applications when communicating directly with customers or providing related products and services.
On average, these companies typically use two different social networks for business, with WhatsApp and Facebook being the most popular.
Although 88 percent of these companies have digital banking services for their corporate accounts, many are still unaware of the convenience and possibility of expanding their digital services, the report said.
The survey found that respondents were more accustomed to using current account remittances (87%) and debit cards to pay (72%) when making transactions, while credit card interest-free instalments (55%) were used to making large payments or emergency charges, in addition to financing transactions (37%).
According to the analysis, 10% of the surveyed enterprises will use personal commercial financial products to conduct transactions with their suppliers. When conducting sales, 50% of SMEs accept credit CARDS, 62% pay through POS terminals, and 93% prefer cash payment or checks.
Between 2007 and 2017, the number of entrepreneurs aged 18 to 64 in Brazil more than tripled from 14.6 million to 49.3 million, according to the global entrepreneurship monitor.
E-commerce in Brazil is expected to grow even 15 percent in 2018, as the electronic payment business expands further in the Brazilian market, bringing more convenience to consumers and more transformation opportunities for retailers.
Seventy-eight percent of Brazilian consumers say they find it very convenient to use e-commerce for payment, even reaching the global average.
Small and medium-sized businesses in Brazil still have many opportunities to digitize their businesses. For example, the use of business credit CARDS can make it easier to do business, such as improving cost control, optimizing cash flow management and extending payment terms, the report said. At the same time, digitization also helps e-commerce SMEs to achieve a broader sales market and a more diverse variety of goods.
A recent survey of Brazilian consumers by Kantar Worldpanel, a leading market research firm, found that most young Brazilians use mobile devices to pay for things. Sixty-four percent of young people use apps regularly or sometimes, and 57 percent use mobile browsers.
Young Brazilians’ enthusiasm for new technologies is driving the development of payment methods and increasing demand for their availability and reliability.