Visa is uncompromisingly building one of the largest global payment networks – HNonline.sk

Eight out of ten Slovaks own a Visa payment card and see its logo every time they open their wallet and pay. In recent years, the company has seen an increase in market share in the Slovak market and it is constantly increasing. In Slovakia, Visa has the largest share within the V4 countries and the Balkans. What is the reason for such success?

Contactless payments and e-commerce are on the rise. Although we have heard this sentence frequently in recent years, everything has taken an unexpected turn since the outbreak of a global pandemic that has doubled the pace of the transition from cash to digital payments. Contactlessness and online payments gained a new meaning, and those who did not jump into the wave of online payments or delivery managed the situation only with difficulty. And this is true regardless of whether it is buyers or sellers. It turned out that Slovaks have no problem with the transition to this type of payment.

Slovakia has long been a leader in the field of contactless payments. We have mastered this technology extremely quickly and it has become a natural part of our lives. In Slovakia, contactless payments represent more than 90 percent of non-cash payments. The trend of contactless card payments is, of course, also pan-European. The increase was also helped by the fact that in 2021 up to 29 countries in Europe increased the limits of contactless payments. Visa also answered this demand.

However, Visa is also creating a global secure system in which consumers can shop securely and easily online. In some countries, Visa recorded up to a 50 percent year-on-year increase in e-commerce transactions, as was Slovakia.

However, few people are fully aware of what lies behind these types of payments so that they can run smoothly and securely. This is done by both buyers and sellers, as well as intermediary banks and especially payment card providers. The aim is for this entire chain not only to work, but also to be innovative, to advance and to bring the greatest possible comfort to all parties. This theme has multiple layers.

Expanding the possibilities of digitization

With increased interest in contactless payments from consumers, merchants have also begun to adapt to the growing trend. “Consumers have largely moved into the area of ​​contactless and e-commerce payments. And traders also have to adapt to that. ” Marcel Gajdoš, Visa’s General Director for the Czech Republic, Slovakia and Hungary, summed up the situation. According to SBA statistics, the number of online merchants with growing demand in Slovakia rose from 3,600 in 2019 to more than 5,000 in 2020, and during the first half of 2021 their number rose by almost a thousand.

Research companies have shown that digital solutions are key for small and medium-sized businesses in a post-pandemic world. Visa has already helped digitize about 16 million micro and small businesses worldwide. That’s about a third of the company’s goal of digitizing 50 million businesses set last year. “After a year and a half of experience with the pandemic, we know that small businesses that have switched to digital trade or foreign sales have managed the pandemic better,” closes Marcel Gajdoš.

Visa also responds to this demand. The partnership with it will allow new merchants to turn their mobile devices into payment terminals. As a result, merchants can accept contactless payments without the use of additional hardware, ie a POS terminal. This is a simple tap to Phone mobile application that turns your Android smartphone or tablet into an NFC-enabled terminal. Such a simplification of the payment system and a high willingness to pay with contactless technologies will also enable the development and more frequent visits to local grocery stores, bakeries or shopping in the markets. Ultimately, this is a significant support for small and medium-sized enterprises and traders.

Source: VISA

An attractive option for financial institutions

While the payment card provider may not be decisive for the average user, it is different for banks or financial institutions. High-security solutions, broad support for payment options for businesses, artificial intelligence, phones turned into terminals – all this makes Visa an increasingly attractive player. Last but not least, according to experts, the client portfolio or the degree of innovation are also taken into account.

In addition, the connection with banks can have another dimension. Slovenská sporiteľňa and Visa strengthened their long-term cooperation in the development of payment solutions by concluding an exclusive agreement on issuing payment cards. All newly issued payment cards of Slovenská sporiteľňa will be marked with the Visa logo. But that’s not all. Visa and Slovenská sporiteľňa have also decided to focus on the sustainability of solutions and ecology. Therefore, from now on, the largest Slovak bank will only issue Visa cards made from decomposable or recycled materials. In addition, they will extend their validity from three to four years. This will save material, which counts to tons – on average it is saved annually 1875 kg of plastic, ie almost 2 tons. The cooperation between the two companies is, among other things, part of Visa’s efforts to promote a low-carbon future within its network.

Visa was based on the idea that secure, fast and reliable digital payments should be available to everyone and anywhere. The brand has thus taken on its mission to connect the world with the most innovative, most reliable and most secure payment network. Becoming the biggest is a big responsibility.