“Tap to pay is a game changer and definitely here to stay” says Visa

Given the convenience of contactless payments, Sri Lankans now simply tap their cards to pay while checking out at a retail store, without the hassles of carrying cash, making the shopping experience even more convenient and rewarding, says Visa Country Manager Sri Lanka and Maldives Avanthi Colombage. In this interview, she notes that contactless payments are the future of digital payments, as they offer a seamless and satisfying consumer experience. Following are excerpts:

Q: With the bustling festive season underway, how are the consumer shopping and behaviour trends looking from Visa’s vantage point, both online and offline?

The festive season is a time of celebration, gift-giving, and spending for many consumers around the world and for Sri Lankans. This season is looking positive with many consumers out and about again, for possibly one of the brightest holiday seasons in the past few years. There is a visible increase in footfalls at shopping malls and retail stores, as people gear up for the festivities. 

One of the key trends we are observing this season is the shift in consumer behaviour – in terms of how they pay for retail purchases – move towards contactless. Given the convenience of contactless payments, Sri Lankans now simply tap their cards to pay while checking out at a retail store, without the hassles of carrying cash, making the shopping experience even more convenient and rewarding. Another trend that we expect to see this season is the rise in ecommerce, as more consumers opt to shop online to avoid crowds and enjoy the convenience of home delivery. With internet users in the country increasing from 30% in 2018 to 51%1, we expect a rise in ecommerce as on the back of higher awareness and adoption of online payments. To add to the season’s festivities, Visa is also running a “Bill Wipe Out” campaign at the Colombo City Centre (CCC) in partnership with Yes FM, which will choose 33 customers to have their bills fully reimbursed, if they make purchases using Visa debit cards at the CCC (T&Cs apply). 

Q: What is Visa doing to make every day cashless purchases a simple and smooth experience for shoppers? Do you think the tendency to tap and pay is here to stay?

 Visa has been deeply committed to Sri Lanka’s payments ecosystem and its growth for over 35 years. With our network of banks, merchants and fintech partners, we help consumers pay digitally, simply and securely every day. As Sri Lankans start to use their cards more, we are also working with businesses and small merchants, more so outside the main urban cities, to ensure they can accept a variety of payments – be it cards, contactless payments, QR payments or online/ecommerce payments, to ensure all consumers have access to sellers who accept safe, secure and convenient forms of digital payments. In tandem, our advanced risk capabilities are ensuring an updated, safe and secure environment for cashless transactions in this dynamic commerce environment. 

We believe tap to pay is a game changer and definitely here to stay. Once consumers experience its convenience, especially in stores with long queues or when they’ve fumbled for change in cash before, they understand that this is faster and safer than cash. We continue to engage with retail partners and banks on increasing awareness of the benefits of contactless payments to create a smooth consumer experience in-store. In numerous countries where contactless payments are entrenched, we have seen tapping becomes a habit and where one cannot tap to pay seamlessly, the consumer experience is less than perfect. We believe that contactless payments are the future of digital payments, as they offer a seamless and satisfying consumer experience.

Q: Tourist numbers are looking up; we are seeing more holiday makers coming to Sri Lanka as the year ends. What more can be done to make Sri Lanka a preferred/repeat destination for travellers, particularly in terms of digital payments?

 Sri Lanka is a diverse and attractive destination for tourists from around the world, offering a range of natural and cultural attractions. The country has witnessed a remarkable recovery in tourism with an unprecedented surge in foreign tourist arrivals, a 153% increase last month, after a 159.8% jump in October, signalling a robust start to the peak tourism season and in response to the favourable conditions in the country. With visas now free of charge for countries like India, China, Russia and others, we expect a further boost to tourism.2 

Given that international travellers are digitally savvy and used to seamless, convenient cashless payments using cards and smartphones, it is crucial to ensure these facilities are available at tourist destinations across Sri Lanka. Visa is working with our network of partners to ensure cashless payment facilities are available at tourist attractions and cultural sites, which will not only allow for accepting contactless payments with ease and confidence, but formalise the collection of these payments. Further we understand that the development of digital payment infrastructure would undoubtedly contribute towards greater tourist traffic, repeat visitors and a superior experience.

Q: At this time, we also see more foreign cards being used across the country. How does Visa actively work with partners to ensure cards are accepted at more small merchants, retail stores, etc.?

Today’s savvy traveller looks for experiential travel beyond hotspots, seeking connections with the local community and culture and ‘authentic’ experiences, away from common tourist attractions. So while segments like travel, hospitality and tourist hotspots are up the curve, we are now helping smaller merchants, in and outside urban areas, accept Visa cards, including foreign issued Visa cards. Visa is committed to expanding its card acceptance network and enabling more small merchants and retail stores to accept foreign-issued Visa cards. By working with banks and other players, Visa leverages its innovative products and services, such as Visa Ready, Visa Direct and Visa Contactless, to offer fast, secure and convenient payment solutions to merchants and customers alike. The market is growing and we are creating opportunities for merchants to ride the tourism wave, accept cashless payments and grow their businesses.

Q: What measures does Visa take so consumers can pay more confidently using cards or digital payments?

The Digital Commerce market in Sri Lanka is projected to grow by 19.08% (2023-2027) resulting in a market volume of $ 7.60 billion in 20273. As a global trusted leader in digital payments, there are multiple areas Visa is focused on to ensure the growth of this Digital Commerce ecosystem is secure. 

1.Visa has established and maintains globally validated safety protocols such as EMVCo standards. 

2.We continuously work with banking partners to ensure risk and fraud prevention measures are taken and that ecosystem security is up-to-date. 

3.Of course, we also continue to engage with the regulator on best practices for consumer and business payments, both domestic and cross-border. 

4.We are also invested in running multiple initiatives to educate end consumers on how to ensure they effect secure digital payments via their Visa cards. We currently have a multimedia campaign ‘Just Debit It’ across TV, digital and OOH to encourage Sri Lankans to use their Visa Debit cards confidently as they pay for their everyday purchases.

Q: Of late, we can see Visa campaigns on using debit cards. Why the focus on enhancing usage of debit cards for transactions?

Post pandemic we have noted that debit cards have become one of the most familiar forms of paying for Sri Lankans and during the festive season, visiting ATMs may be difficult and carrying cash may not always be safe. Consumers equipped with debit cards can, instead simply tap or dip the card to pay at the merchant. This is also useful for consumers who are not yet using credit instruments for a variety of reasons. We believe our campaigns will encourage more cardholders to use their debit cards, make quicker/safer purchases and make the best of the festive season.

Q: One thought you would like to leave our readers with, as they get into the holiday mood?

 With the exciting festivities lined up for all types of celebrations, keeping a tab on one’s statements and ensuring optimum use of digital payment modes will be great for consumers looking for safe, secure and simple digital transactions this season. We wish all Sri Lankans a happy Christmas and prosperous New Year. 

Footnotes:

1https://archives1.dailynews.lk/2023/02/06/business/296729/internet-users-increase-30-51

2https://www.ft.lk/top-story/Setback-for-visa-free-tourism-push/26-754550

3https://www.statista.com/outlook/dmo/fintech/digital-payments/digital-commerce/sri-lanka