South Africa’s small and medium enterprises (SMEs) are demonstrating growing digital sophistication, with widespread adoption of online payments and business financial tools, according to a new study by Mastercard.
Findings from the Mastercard SME Confidence Index reveal that 80% of South African SMEs now accept online payments. This is one of the highest rates across Eastern Europe, the Middle East and Africa (EEMEA). Bank transfers on the other hand account for 64% of transaction volumes.
Nearly half of SMEs expressed optimism about the year ahead and 43% expecting revenue growth despite ongoing economic pressures.
Over half (55%) of businesses see the biggest growth opportunity in offering simple, seamless payment methods, while 51% are focused on strengthening cybersecurity and payment safety.
“South African businesses are operating with a level of digital and commercial maturity that positions them strongly within the region,” said Gabriel Swanepoel, division president for Africa at Mastercard. “They have embraced online payments, they manage their finances through dedicated business tools and they are clear about where their next opportunities lie.”
Despite inflationary pressures and a challenging economic environment, SMEs in South Africa are showing resilience. Nearly two-thirds (64%) of respondents cited technological progress as a positive force for their business, while 55% pointed to the growing use of artificial intelligence and machine learning as an emerging opportunity.
“Entrepreneurial businesses across the region continue to demonstrate resilience, adaptability and ambition,” said Onur Kursun, executive vice president for Commercial and New Payment Flows at Mastercard. “Their increasing focus on digital capabilities and access to finance is opening new pathways for sustainable growth.”
A significant 85% of businesses use dedicated business debit or credit cards to manage expenses, rather than relying on personal cards. This practice improves financial visibility and control, and positions businesses to access more advanced financial tools as they scale.
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