Creators as Small Businesses Recognized by Visa at Web Summit

At the highly attended Web Summit in Lisbon, Portugal this past week, creators were recognized for their significant role in the growth of the digital economy. Multinational payment card services company Visa made a major announcement, celebrating the impact of creators and expanding its collaboration with musician and filmmaker Pharrell Williams.

“It’s incredibly rewarding to see the world finally recognizing creators as the driving force behind the digital economy,” said Jonathan Kolozsvary , Global Head of Small Business at Visa . “We are proud to help creators grow their businesses – whether it’s helping creators access funding with a small working capital solution, or helping creators get paid in real-time to their debit card.”

Creators produce and share content, products, or services primarily through digital platforms. They leverage technology to promote their content creation, particularly the internet and social media, to reach audiences, build communities, and often monetize their work.

The Fields Where Creators Have Key Roles

Content Creators produce videos, blogs, podcasts, and other media content such as YouTubers, TikTok influencers, streamers (on social platforms like Twitch), and bloggers. Their content entertains, educates, or informs audiences, monetizing their activities via digital advertising, sponsorships, merchandise sales, or fan subscriptions.

Digital Artists and designers produce graphic design, digital art, animations, and other visual assets that are distributed and consumed online. They sell their works as digital downloads or as NFTs (non-fungible tokens), or work as freelancers for brands or agencies.

Software and app developers design and build digital tools, apps, or software. They monetize their work through app sales, subscriptions, or offering software as a service (SaaS).

Musicians and audio creators create music, sound effects, or podcasts, distributing their work via streaming services, social media, and platforms like SoundCloud, Spotify, or Apple Music.

E-commerce sellers are entrepreneurs who sell products through online marketplaces or their own websites, sometimes they create their own goods or curate them for niche markets.

Visa touts its services that help these creators get paid fast. More than two-thirds of creators struggle with slow payouts that hinder their growth(1), according to a Visa survey of creators.

This challenge is being addressed through partnerships with social media networks and marketplaces to help creators get real-time(2)?payments to their eligible debit cards.

Key Characteristics of Creators in the Digital Economy

• Monetization: Many creators earn income directly from their work by utilizing platforms that enable tipping, subscriptions, direct sales, ad revenue, or partnerships.
• Platform Dependence: Creators typically rely on digital platforms like YouTube, Instagram, Patreon, Etsy, or Twitch to distribute their content and grow their audiences.
• Community Engagement: Successful creators often cultivate a community of followers, which can help them grow their influence and increase their earning potential. They use social media platforms and other channels to engage with fans and customers.
• Entrepreneurial: Many creators run their work as businesses, handling aspects of marketing, branding, and product development themselves or through collaborations with sponsors, agencies, or other businesses.

Visa Teams Up with Pharrell

Furthering its public promotion of creators in the business community, Visa announced it is expanding its partnership with entrepreneur and philanthropist Pharrell Williams.?Williams is a GRAMMY? Award-winning, Academy Award?-nominated musician and filmmaker.

A brand advocate and star of Visa’s 2024 brand film, “Prodigies,” Visa and Pharrell are partnering on two of his philanthropic ventures,?Black Ambition?and?YELLOW. YELLOW is a non-profit founded by Pharrell that helps youth through education. Visa will provide financial tools, digital inclusion tools, and resources to its students to improve financial literacy.

“As a creator, artist and philanthropist, I’m passionate about helping others pursue their dreams,” said Williams. “This collaboration enables us to propel students and Black and Hispanic-owned small businesses forward, instilling a spirit of relentless improvement and inspiring them to strive for excellence daily.”

VISA’s Multiple Commitments Supporting Creators

These new commitments join Visa’s other initiatives supporting the creator community such as ‘GetP@id’, Visa’s social series where influencers teach mentees how to turn their passions into money, and Visa’s inaugural Creator Summit. The latter is a two-day event hosted in Tokyo later this month with industry leaders like Amplify and emerging influencers.

Visa experts will assist aspiring and growing influencers on the next steps in their small business digital journey, including the best way to pay and be paid, countering the inconsistent cash flow they face. The company also offers business reporting, payment controls, digital payment management platforms, and financial education and business skills training for small and micro businesses.

Visa recognizes creators and the creator economy as “a powerful force in the global economy” and furthers its commitment to help them thrive as the digital economy continues its ongoing growth and evolution.

(1) Marketplaces Survey (March 2020). Commissioned by Visa and conducted by Raconteur among 750 marketplace sellers, 224 of which were digital creators.

(2)?Actual fund availability depends on receiving financial institution and region