Tashkent, Uzbekistan (UzDaily.com) -- Visa, a global leader in the digital payments industry, has presented the results of a study Unlocking the Benefits of Digital Payments. The survey-based study involved 703 residents of Tashkent, Namangan and Samarkand, of which 403 are consumers and 300 are micro and small business owners who use digital payments.

- The Visa study involved 703 people and owners of micro and small businesses from the largest cities in the country, where the availability of digital payments is largely concentrated;

- 85% of those surveyed report a positive impact of digital payments on their business and life.

- 48% of micro and small business owners use digital payments for half of their transactions;

- Two-thirds of micro and small business owners are seeing revenue growth, more customers and improved business management through the use of digital payments;

In Uzbekistan, the government has systematically created the necessary conditions for the development of digital payments and the widespread introduction of innovative technologies as part of the national growth and development strategy. The result was a significant transformation of the payment and financial systems of Uzbekistan and significant changes in the lives of residents. According to the World Bank, in ten years, the number of people who have an official financial account with a bank has grown from 23% in 2011 to 44% in 2021.

Visa has been part of this transformation and now, with the support of a wide range of partners, including banks, mobile operators and fintechs, as well as governments in implementing national initiatives, laws and regulations, the company continues to actively work to develop an inclusive economy in the country. At the request of Visa, independent research firm Digitum surveyed consumers and micro and small business owners who actively use digital payments and assessed their impact on life and business. The company also sought to figure out what needs to be done now to expand the benefits of digital payments across the country.

“Uzbekistan has entered the heyday of the digital economy in a few short years thanks to the policies of the country’s leadership and partnerships. The market is actively developing, banks are introducing innovative financial technologies and solutions, and people increasingly prefer to pay by non-cash payment methods, because it is more convenient, faster and safer. We can already see how innovative digital payments are – meeting the needs of people and helping small businesses expand and thrive. Today, Uzbekistan has all the prerequisites for an even wider development of the financial market, contributing to growth and social progress, in order to become a leader in financial technologies in Central Asia,” said Kristina Dorosh, Visa Vice President, Regional Manager for Central Asia and Azerbaijan.

Key findings of the study:

The popularity of digital payments is growing. Both individuals and business owners use digital payments for half of all their transactions. According to the results, 86% of surveyed residents and 92% of small business owners use digital payments several times a week.

Payroll and government payments are driving growth in the use of digital payments. Respondents make more than half of their digital payments using payroll cards, and 14% of those surveyed actively use dedicated benefit cards.

Convenience and demand from consumers are driving the adoption of digital payments. Among the main reasons for the active use of digital payments, individuals name convenience (45%) and innovative financial technologies (38%).

While the owners of micro and small businesses note the request from customers (44%), convenience (31%) and the request from suppliers (28%).

Digital payments help small businesses grow. After implementing digital payments, 69% of small business owners report an increase in customers and 65% report an increase in revenue, averaging 30-40%.

Ubiquity and reliability are key to expanding the digital payments ecosystem. Despite the positive trends, almost half of the respondents still report problems using digital payments. Not all outlets have the possibility of making a digital payment or there are restrictions on accepting cards of different payment systems. Negative experience is also associated with service instability, power outages and technical problems in the operation of terminals, which leads to the still active use of cash.

The value of using digital payments is more than just financial. The use of digital payments has a holistic impact with practical and emotional implications. Respondents note an improvement in the quality of life: many have more time. This figure is especially noticeable among small business owners. 62% of respondents believe that thanks to the introduction of digital payments, they have increased confidence in the future. Another indicator is the feeling of freedom (58%) from time and, as a result, the appearance of energy that can be invested in other areas of business or life. These metrics showcase the benefits of digital payments, further driving their popularity.

Improving the financial literacy of the population accelerates the transformation of the payment system. 82% of business owners who have completed financial literacy courses or training find them useful. However, only 38% of respondents received such training. 42% of the residents who took part in the study are sure that learning about financial literacy will be beneficial.