Lankan consumers keen to adopt digital payment solutions: Visa survey

• 51% of Sri Lankans likely to embrace new forms of payments, 68% find convenience and security of digital transactions drive adoption

 Visa, the world’s leader in digital payments technology, yesterday announced an independent study conducted in collaboration with YouGov, which measured consumer sentiment around digital payments in Sri Lanka. 

The study observed a growing inclination amongst consumers (51%) in favour of adopting newer modes of digital payments, indicating increased awareness, acceptance and adoption of digital forms of payments among Sri Lanka (WA1) consumers. 

Going cashless is more than a convenience and for many it has become a preferred choice, says Visa in Sri Lanka Country Manager Anthony Watson. 

“More and more consumers are becoming digital natives, expecting a differentiated experience oriented towards convenience and practical usability. IoT and contactless payment technology, enabling a simplified, secure and faster eCommerce experience are some of the trends defining the next wave of the future of payments. The study shows that while consumers are steadily embracing digital payments, they are also seeking secure payment forms. At Visa, we constantly innovate and evolve to provide seamless and secure digital payment options that will make a transition to a digital economy a frictionless and trusted process,” Watson said.

One of the factors that surfaced as the key drivers of this adoption is the convenience and security of the digital form factors of payments as stated by 68% of respondents. Amongst those who currently have used less cash than before, 55% state that the main reason to transit away from cash is the ease of transaction offered by digital modes of payments.

The survey was aimed at understanding the pulse of Sri Lankan consumers and their views towards the transition to a digital economy. The study indicates that amongst people for whom this adoption was tough, 53% stated that they found the merchants that they go to only accepted cash while 54% found insufficient modes of payments as a key barrier while 32% noted that they were worried about the security of their transactions.

Significantly, over half of the consumers (66%) valued security more than convenience when it came to making payments online. This is similar across the board - gender, age, household income and even education levels.

The survey also highlights a popular trend among Sri Lankans to prefer card payments to pay for special incentives such as hotel and airline tours or holiday promotions which remain popular among Sri Lankan consumers through special credit card offers.

The survey was conducted across three countries – Sri Lanka, India and Bangladesh - and also shows that millennials are more likely to use digital payments for everyday essentials like paying at bus or subway gates, shopping at supermarkets, online, department stores, fast food restaurants, taxis or cabs, etc. than earlier generations. The study also shows that the inclination towards embracing the digital route is higher amongst those from a higher income household.

“While there is a visible shift in consumer spending pattern from cash to digital modes, there is also a clear and willing adoption of this transition among consumers today. People across geographies realise the benefits of adopting digital modes of payment and are open to experimenting with newer forms of payments. While the study indicates consumer willingness to transition to digital forms of payments, it also highlights the opportunity for the industry to expand the digital acceptance footprint across Sri Lanka in keeping with evolving consumer spend patterns,” adds Watson.

The study, which sampled people in India, Bangladesh and Sri Lanka this October, was conducted by market researchers YouGov on behalf of Visa using active sampling, a method that focuses on ensuring the quality of the sample rather than the quantity of the respondents. 

The research probed over 2,000 people across the Indian subcontinent. Commissioned by Visa, the online survey was conducted independently by YouGov to find out the sentiment of consumer adoption of digital payments and user habits in the region.

Visa Inc. is the world’s leader in digital payments. Its mission is to connect the world through the most innovative, reliable and secure payment network, enabling individuals, businesses and economies to thrive. 

Its advanced global processing network, VisaNet, provides secure and reliable payments around the world and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and is a driving force behind the dream of a cashless future for everyone, everywhere.  As the world moves from analogue to digital, Visa is applying its brand, products, people, network and scale to reshape the future of commerce.