Photo: Malak El Baba, Visa Vice President and Egypt Country Manager.
A new study from Visa, the SME Megatrends report, delves into the ever-evolving financial landscape for Small and Medium Enterprises (SMEs) in Egypt. The report identifies significant opportunities for growth and innovation, particularly in the digital and financial domains, with clear insights that can be leveraged by issuing banks to unlock new revenue opportunities and gain a competitive edge.
Digital transformation is paving new avenues of growth and sales for SMEs in Egypt, with an uptick in social media and e-commerce, BNPL and POS financial and e-wallet penetration. The rapid acceleration of digitization within the region’s SME sector presents a wealth of new revenue opportunities for issuing banks who, by facilitating access to essential financial products and services, can tap into this potential, leading to an expanded customer base, increased transaction volumes, and heightened revenue prospects. By working in partnership with Visa, issuing banks can deliver bespoke financial products tailored to SMEs’ unique needs to actively promote inclusive economic growth.
Malak El Baba, Visa Vice President and Egypt Country Manager, remarked, “At Visa, we are dedicated to empowering issuing banks to tap into the vast potential of SME financial services, focusing on bridging the critical gaps that impede SME growth – an approach that involves transforming challenges into tangible opportunities. Through strategic partnerships with these banks, we aim to offer the essential resources required to develop tailored financial solutions that meet the specific needs of SMEs.”
The Visa SME Megatrends report is an indispensable tool for issuers to better understand SME needs while identifying actionable strategies to customize their offerings for this market segment. Crucially, the report reaffirms Visa’s unwavering commitment to expanding SMEs’ access to the digital economy, fostering a resilient and mutually beneficial business environment for all stakeholders.
Spotlight on Egypt’s SME landscape
Critical insights from the Egypt SME Megatrends report:
- Greater Desire for Formalized Financial Services and Access to Credit: Egyptian SMEs remain largely underserved and underbanked, with current formal financing offerings being costly and inadequate for their specific needs.
- BNPL & POS Financing Are Increasingly Being Adopted by SMEs: BNPL and POS financial solutions are making inroads as tools to boost sales and increase customer satisfaction.
- Social Media Driven Commerce is a Key Sales Channel for Informal SMEs: Social media commerce is a vital tool for informal SMEs, empowering them to grow their sales and expand their customer base.
- E-Wallets Moving from Issuing to Acceptance: The significant increase in e-wallet penetration in Egypt is transforming the way SMEs get paid and enabling more businesses to go online.
- Support Required to Build a Proprietary Online Presence & Payment Acceptance: With the e-commerce market driving SMEs to build an online footprint, they require more robust and simplified tools to enable them to compete online efficiently.
- Proliferation of Digital B2B Marketplaces: The wholesale industry is fragmented and highly informal, allowing digital B2B marketplaces to offer SMEs a convenient platform and secure payment methods to connect with a wide range of suppliers.
- SMEs Are Increasing Their Use of Digital Business Tools: Digital platforms have an opportunity to enable SMEs to drive operational efficiency, maximize profitability, and create formalized financial management.
Empowering the Ecosystem, Powering Growth
Visa recognizes the pivotal role of SMEs in driving economic growth and is committed to integrating them into the digital economy. Through its extensive network, innovative business solutions and value-added services, Visa collaborates with issuing banks to facilitate SME access to digital tools and financial services, bolstering the digital transformation of SMEs.
Visa has already digitally enabled nearly 67 million SMBs worldwide, leveraging its extensive expertise and partner network, exceeding its three-year goal of digitally enabling 50 million SMBs globally. This achievement underscores Visa’s profound expertise and the strength of its partnerships. By pinpointing ways for issuers to provide SMEs with vital financial products and services, Visa seeks to foster economic growth collaboratively. This effort not only aids SME development but also contributes to a flourishing cycle of prosperity, offering substantial benefits for the economy at large.
