Visa Redefines Small Business as Millions of Global Creators Gain Access to Capital and Financial Tools | PYMNTS.com

The next generation of small businesses just might be the current generation of micro-businesses. They’re the creators. The 200 million plus community that populates sites like OnlyFans, Patreon, YouTube and Amplify with talent and skills from musicianship to fashion advice to stand-up comedy. And like any other business, these creators need to pay and get paid.

With that in mind, Visa on Tuesday (Nov. 12) announced that it will officially begin classifying creators as small businesses within its network.  The designation lets creators pay, get paid and get access to working capital easily with any of the financial tools, resources and products Visa makes available to small businesses worldwide.

“When you think of the demographic change and the way the business is changing and the preponderance of online channels and digital channels for business, this is the group that will become small and mid-sized corporates,” Darren Parslow, global head, Visa Commercial Solutions, told Karen Webster in an exclusive conversation recently. “Revamping and pivoting our focus on them to treat them as such, I think is a great first step.”

As Parslow told Webster, Visa is looking to make it easier to access the digital economy for this customer segment. With its full suite of payment services designed to help creators and all small businesses pay and get paid — from Visa Business credit and debit cards, business reporting, payment controls and digital payment management platforms, to financial education and business skills training, including Practical Business Skills globally — he believes innovating now will be a stepping stone to building strong relationships with the creator community. Changing the designation not only gives this community access to financial tools, it also means redefining what it means to be a small business in the connected economy.

Parslow said that definition means that Visa looks at creators as individuals or sellers who are developing and monetizing content for digital platforms, either on a full or part-time basis. It is an extremely diverse group, some of whom are full-time content creators with huge followings and some of whom are hobbyists testing the waters to see if revenue can develop, which as Parslow noted, can take a long time.

“Creators are small businesses by definition,” he said. “However, they are treated primarily as individuals. But if you change that focus … and pivot to them around being business owners, they have needs for specialized financial tools. They need cash flow management tools. They need to get paid. And slow payments hinders their ability to manage their business in a sustainable way.

“Many of them have found a way to monetize their idea or their viral videos or their products online. But managing a business and managing that cash flow is something that, when you treat them like an individual, you find they’re underserved.”

Visa has formed partnerships with major platforms in Europe, North America and Asia, and these partnerships have driven growth — 20% month over month — in just six months, according to Parslow. This growth highlights the strong demand among creators for quick, flexible access to funds and working capital.

Visa is also rolling out several initiatives tailored to help creators thrive as small businesses. One initiative is Visa’s “Get Paid” social video series, which matches aspiring creators with established mentors in fashion, food and music. Over several weeks, these mentors share insights into building successful careers and businesses.

Later this month, Visa will hold its first Creator Summit in Tokyo, a two-day event where Visa experts and platforms like TikTok and Amplify will work with influencers, discussing ways for creators to scale their business, manage cash flow, and streamline payment processes.

“But more importantly we are opening our full suite of products through our core clients.” Parslow said. “Whether that’s small business credit, small business debit, small business prepaid, whether it’s digital platforms, it’s digital reporting, payment controls, financial education and just in general business skills training, we’re extending the practical business skills that we manage globally.”