Less than a third of small businesses are ready to handle the holiday surge in online sales, according to research carried out by Visa Ireland.

With 21% of Irish consumers planning to do most of their shopping online this Christmas due to Covid-19, more than 28% of SMEs are unprepared for the shift in buying patterns and only 12% of small businesses are planning to digitise their business to meet demand.

According to Visa, the Christmas trading period represents the largest sales opportunity for 33% of Irish SMEs. Online shopping is likely to represent a higher percentage of sales compared to previous years, with 40% of Visa card holders who didn’t shop online before the pandemic, now doing so. 

“This means that small businesses face losing out on valuable sales if they do not have an online offering,” said the card company.

Country manager Philip Konopik (pictured) said: “Christmas is a key trading period for businesses in Ireland. While creating an online offering has never been easier, small businesses also need to consider the regulatory requirements they need to trade successfully online and in-store. 

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“Businesses have the power to decide how smooth the checkout experience is for their customers and to ensure that legitimate payments can be approved. By offering them the tools and resources needed, we can empower them to maximise sales and rebuild for long-term recovery.”

One factor deterring SMEs from providing online outlets is the EU’s Payment Service Directive, due to come into force from 31 December, which will require online traders to have payment technologies in place that meet the requirements of Strong Customer Authentication.

The latter requires banks to check that payments are being made by the correct cardholder, and not a fraudster, by asking them for a method of identification such as a fingerprint or a four-digit one-time passcode sent to a smartphone or mobile device. 

“Businesses that aren’t prepared for the regulation may find that banks will decline customer payments,” said Konopik. “By adding these features SMEs can help make payments more secure and ensure their customers can still make online purchases quickly and easily.”

The company has a guide to preparing for strong customer authentication here, and also provides a Digital Business Kit for users of its services, which provides guidance on setting up a digital presence, in addition to tips on SCA. These resources explain SCA and what small businesses can do to make paying and being paid easier and more secure, the company says.