The recession is driving more entrepreneurs online. According to online payments processor Realex, the amount of payments it processed in June was up €60m to €540m on the previous month.
The company said that a total of 110 new businesses signed up for its services during June, up 38pc on previous months.
Every year Realex processes, on average, €6bn worth of payments for Irish businesses.
CEO Colm Lyon (pictured), who started Realex in 2000 after a career with Ulster Bank, said in the current climate it is very clear that the internet is a vital channel for Irish businesses, and one that is continuing to grow in importance, month on month.
“Recessions can often be the catalyst for entrepreneurs to start their own business. In many respects, it’s the ideal time to start a business. What we have witnessed last month is really encouraging, 110 new businesses seized the opportunity and signed up with Realex Payments to start selling online.”
He said that more and more consumers are bargain-hunting online, and as a direct result online retailing is the most popular choice for budding entrepreneurs.
“Realex Payments has witnessed a substantial increase in the number of e-retailers signing up to our service, and of the 110 clients who signed up, 25pc are e-retailers operating in the online marketplace.”
The clients signed by Realex this month are selling various items online, including jewellery, IT supplies, alarm systems and party supplies.
“Selling online is a very cost-effective way to start a business; little capital investment is needed, you just need invest in a website,” Lyon explained.
He said that Realex introduced a specific SME rate of €29 a month to encourage businesses to start selling online.
In June, Realex Payments processed over €540m worth of payments, an increase of over €60m on the figures for May.
“What these highly impressive figures show is that both new businesses selling online for the first time and existing businesses are benefiting from increase online market growth and reach,” Lyon said.
By John Kennedy
Pictured: Colm Lyon, CEO of Realex Payments