Visa has introduced new mobile payment capabilities designed to transform smartphones into versatile payment terminals for small businesses, a move aimed at supporting merchants in emerging markets, including Qatar’s rapidly expanding contactless retail sector.

The global rollout, announced on June 30, targets micro-sellers and small to medium-sized businesses (SMBs), enabling them to accept payments and distribute funds via their mobile devices without the need for additional hardware. The initiative aligns with Qatar’s leading position in contactless payments, where nearly 90% of transactions are contactless, according to Visa.

Visa’s updated service under Visa Accept allows sellers to turn their smartphones into card terminals, facilitating tap-to-pay or payment-by-link transactions through Visa debit or prepaid cards. Payments are processed in near real time, helping merchants manage cash flow more effectively. The service is already operational in over 25 countries, including partnerships with banks such as HNB in Sri Lanka, Banco Agromercantil de Guatemala, and SACOMBANK and VPBank in Vietnam. Additional launches with institutions like Co-op Bank in Kenya and several Ghanaian banks are imminent, with the company projecting millions of merchants will adopt the technology by 2027.

Fadi Moukaddem, senior vice president and Group country manager for the UAE, Kuwait, and Qatar at Visa, highlighted the urgency for small businesses to offer digital payment options. “Today, if you are a small shop in Souq Waqif and you don’t have access to digital payment, you might lose business because some people don’t use cash anymore,” he said in an interview timed with the Visa Payments Forum. Moukaddem stressed that in Qatar, the product itself is rarely the barrier to sales, but rather the availability of convenient payment options.

Visa’s senior vice president for Commercial and Money Movement Solutions in Central and Eastern Europe, the Middle East, and Africa, Shahebaz Khan, emphasized the importance of seamless payment experiences for customer retention. He articulated a vision where a single smartphone could meet all payment acceptance needs, provide business insights, and help merchants focus on customer experience rather than payment logistics.

In addition to accepting payments, Visa Direct allows small business owners to use mobile phones to make real-time payouts to employees, contractors, or drivers, as well as issue refunds or incentives. This platform supports cross-border money movement to eligible cards, bank accounts, or digital wallets, facilitating operational efficiency for SMBs.

Visa’s Global Small and Medium Business Macro Trends Report underscores the relevance of digital financial tools, showing that 99% of small businesses surveyed use at least one such tool, with 85% acknowledging positive business impact. However, the report also highlights ongoing challenges, noting that 20% of SMBs experience regular cash flow gaps, and nearly 28% have encountered difficulties in accessing credit or borrowing in the past year.

Banks increasingly view payment acceptance as a revenue driver, which can improve small businesses' access to credit, according to Moukaddem. This trend forms a key part of Visa’s strategy to harness mobile technology to empower small merchants, especially in markets where smartphone usage is widespread but traditional payment terminals are less accessible.