South African SMEs Among Region’s Most Digitally Active, Mastercard Index Finds

By Kekeletso Nkele, small.news Assistant

(small.news) — South African small and medium-sized businesses are using digital payments more than those in other regions, according to the Mastercard SME Confidence Index, a study of businesses in Eastern Europe, the Middle East, and Africa, reports IOL.

Among South African businesses surveyed, 80% said they accept online payments, one of the highest rates in the EEMEA region. Bank transfers account for 64% of transactions, and 85% use business debit or credit cards rather than personal ones to handle expenses — a trend Mastercard sees as a sign of business experience.

Feelings about growth are mostly positive but varied. Half of South African SMEs said they feel hopeful about the next year, and 43% expect their income to increase. The remainder were either uncertain or cautious about the outlook.

Technology Seen as a Positive Force

Almost two-thirds of those surveyed — 64% — said technological improvements help their businesses, and 55% cited the increasing use of artificial intelligence and machine learning as a positive change, indicating that South African SMEs are becoming more open to new ideas.

When it comes to payments, 55% said the best chance for growth is offering easy, smooth payment options, followed closely by 51% who focused on safe, secure payment processing.

Access to Finance Remains a Priority

Almost a third of respondents — 30% — sought outside funding in the past year, and 31% said they want more credit to invest in their businesses, indicating a strong desire to grow. Besides money, South African SMEs also said training their teams, good government support, and better physical and digital security are important for the future.

What Mastercard Executives Said

Gabriel Swanepoel, Division President for Africa at Mastercard, said South African businesses have strong digital and business capabilities that put them ahead in the region, and Mastercard wants to offer safe, seamless solutions to help them continue to grow.

Onur Kursun, Executive Vice President of Commercial and New Payment Flows for EEMEA at Mastercard, said businesses in the region show strength, flexibility, and ambition, and that their growing focus on digital skills and access to money is creating new ways to grow steadily.