Image credit: Get Entrepreneurial
A PAYPAL survey of 210 small and medium-sized enterprises (SMEs) with an online presence showed a quarter of them reporting a positive experience during the Covid-19 pandemic, while a further 18 per cent of them said they had not been impacted.
In a press release on Monday (Jan 10), PayPal said the pandemic has led to more SMEs pivoting from their traditional business models to move online, with some of them expanding their reach overseas, aided by global payment systems.
Fifty-seven per cent cited a greater reliance on digital payment methods; 48 per cent had more online purchasing; and 39 per cent reported a greater preference on shipment options. These were the top 3 shifts in consumer behaviour since the start of Covid-19, the survey pointed out.
Rakesh Krishnamuti, director of enterprise sales in South-east Asia at PayPal, said that despite significant challenges posed by Covid-19 restrictions, SMEs showed their resilience by adapting and strengthening their online proposition.
"They have been getting online, leveraging social media in promoting and selling their products, and capturing new customers in other markets through cross-border commerce," he said.
Of those surveyed, 53 per cent are using social media as a selling channel, while 42 per cent felt that social media is the best way to grow a business.
"A popular way for SMEs to scale their business during the pandemic is through social media, which was harnessed both as a marketing medium as well as a direct sales channel," said PayPal.
The report also found that Singaporean merchants are leveraging global e-commerce growth, with 81 per cent of the survey participants already engaged or planning to pursue cross-border trade.
PayPal said: "Technology has made it easier than ever for businesses to embrace cross-border trade by adopting global payment systems, developing an owned website, or partnering with third-party platforms to help facilitate cross-border selling."
Of those polled, 78 per cent indicated an interest to invest in more payment options to enhance user experience. With more SMEs investing in online growth, digital payments continue to play an important role in building trust and converting new customers, noted PayPal.
"Digital payment platforms remain a critical part of the online customer journey and the more seamless it becomes for shoppers, the better chance SMEs have of growing their businesses both locally and internationally," said Krishnamuti.
Source: https://www.businesstimes.com.sg/sme/more-smes-pivot-to-digital-during-pandemic-paypal-survey