Small and medium enterprises (SMEs) in South Africa are accelerating their digital transformation and seeking new growth opportunities through digital payments and strategic private sector collaborations while sustainability is priority.
This is according to the third edition of the Mastercard SME Confidence Index, which reveals that 90% of South African SMEs have adopted digital payments. This highlights the increasing shift towards contactless transactions as a means to enhance efficiency, security, and business credibility.
Businesses see seamless supplier payments (89%), more efficient multi-channel transactions (87%), and quicker access to revenue (72%) as the most significant advantages of digital payments.
“SMEs are the backbone of economies, driving innovation, employment, and resilience,” says Dimitrios Dosis, president: Eastern Europe, Middle East and Africa at Mastercard. “As digital transformation accelerates, SMEs are unlocking new opportunities through digital payments and financial inclusion.
“Their ability to adapt and grow in a rapidly evolving business landscape reflects the strength of an ecosystem that prioritises access to finance, digital enablement, and sustainable growth.”
Mark Elliott, division president: Africa at Mastercard, comments: “As South Africa’s SMEs continue to adapt to a rapidly evolving economy, digital payments, sustainability, and cybersecurity are becoming key priorities for growth.”
As South Africa’s economy continues to digitalise, SMEs are increasingly recognizing the benefits of digital transactions in enhancing business efficiency. Many business owners emphasize the simplicity of payment management, smoother supplier transactions, and quicker access to revenue as key advantages of adopting digital payments.
Looking ahead, 79% of SMEs aim to expand their digital payment capabilities across multiple channels, while 62% prioritize sustainability initiatives and 60% focus on enhancing cybersecurity to strengthen their businesses. As confidence in growth remains steady, 74% of South African SMEs anticipate maintaining or increasing their revenue this year compared to last year.
The study also reveals that 58% of SMEs in South Africa are looking ahead with growth in mind, with one in three planning to secure credit to support expansion. As businesses scale, 55% identify increasing their sustainability footprint as a key operational priority for the year.
SMEs in South Africa identify team management and upskilling (92%), effective regulatory support (90%), and implementing sustainable practices and enhancing ESG performance (88%) as the top areas where they require support to drive long-term success.