Stripe research shows businesses invest in growth despite tough economic climate
- Report offers insights on how Thai businesses can expand and leverage global opportunities
- New research shows sixty-five percent of businesses are confident about their growth in 2023, even as 80% are bearish on the economy
- Many are using payment tools to increase revenue while also automating financial tasks to control costs
BANGKOK, Thailand, 24 May, 2023 – A new report from Stripe, a financial infrastructure platform for businesses, finds that businesses have more confidence in their own growth than in the health of the broader economy. The report offers insights on how Thai businesses can expand and leverage global opportunities to meet future challenges during 2023 and beyond.
The report is based on a survey of 2,500 business leaders from nine countries. It found that sixty-five percent of businesses are confident about their growth in 2023, even as 80% are bearish on the economy. Businesses ranked inflation as their top concern, and 72% reported higher operating costs than a year ago. Against this backdrop, the report found that the majority of businesses have gone on the offensive by experimenting with new products and revenue streams. Many are turning to payment tools to grow their revenue while also looking to automate financial tasks to rein in spending.
“You cannot save your way out of a crisis. In past slowdowns, businesses that succeeded made bold bets while cutting down on waste. That’s not easy to pull off when money is tight—but the internet means many more businesses can use that playbook this time around,” said Tee Chayakul, Country Director, Stripe Thailand.
Thai businesses can take stock and apply key findings of the report to grow revenue online, including:
Online payments are an underutilized lever for revenue growth
Nearly two-thirds of businesses agreed that online payments have created new ways to make money, and 71% agree that their customers’ expectations for the smoothness of the checkout experience are rising. As a result, many businesses are prioritizing payment tools that help grow sales.
However, many other businesses are leaving money on the table by not taking full advantage of innovations in payments technology. Prior Stripe research revealed that three-quarters of customers are more likely to complete a purchase when one-click checkout is offered, while half of all businesses in the 2023 Insights Report said they haven’t fully explored online payments to increase sales.
It’s a good time for Thai businesses to hedge their bets
Over 60% of businesses are taking advantage of the current slowdown to experiment with new ways to grow their revenue online. Many are using tools that open up new sources of revenue without significant upfront investment. Some of the new revenue stream models being pursued by businesses include enabling loyalty programs, unified commerce experiences, and subscriptions for recurring revenues. Fashion brand Zara’s recent partnership with Stripe on its Zara Pre-Owned marketplace powered by Stripe Connect highlights an innovative way to grow revenue with sustainability in mind.
Businesses are looking to cut operating expenses, not capital expenditures, as they maintain plans for growth
Two-thirds of businesses said they intend to respond to inflation by reducing costs. At the same time, businesses are being selective about where they cut. Fewer than 20% of respondents plan to cut spending on core products or services, and only one-third are prioritizing hiring freezes. Instead, businesses are slashing operating expenses: 51% percent are prioritizing negotiating better rates with vendors, and 70% plan to cut the number of software providers they use.
Many see this decision as a strategic move. When asked to name the top reason they are consolidating software providers, businesses were as likely to cite faster access to data as they were to name cutting costs.
“My team has to account for millions of transactions tied to card payments, bank transfers, invoices, and more,” said Jonathan Gan, head of revenue accounting at Slack. “With tools like Stripe that free up time for big-picture work and strategy, we’re more easily able to automate and accelerate financial reporting at Slack.”
Read the entire Stripe 2023 Insights Report on https://stripe.com/lp/stripe-insights-2023
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