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 received 300 responses from South African SMEs.
The latest findings reveal that 90% of surveyed SMEs in South Africa have adopted digital payments, highlighting the increasing shift towards contactless transactions as a means to enhance efficiency, security and business credibility, says Mastercard.
It notes that 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.
“Small and medium enterprises are the backbone of economies, driving innovation, employment and resilience,” says Dimitrios Dosis, president of 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.”
Says Mark Elliott, division president of Africa at Mastercard: “As South Africa’s SMEs continue to adapt to a rapidly-evolving economy, digital payments, sustainability and cyber security are becoming key priorities for growth.”
The financial services firm points out that as South Africa’s economy continues to digitalise, SMEs are increasingly recognising the benefits of digital transactions in enhancing business efficiency.
It adds that many business owners emphasise the simplicity of payment management, smoother supplier transactions and quicker access to revenue as key advantages of adopting digital payments.
Looking ahead, Mastercard says 79% of SMEs aim to expand their digital payment capabilities across multiple channels, while 62% prioritise sustainability initiatives and 60% focus on enhancing cyber security to strengthen their businesses.
As confidence in growth remains steady, it notes, 74% of South African SMEs anticipate maintaining or increasing their revenue this year compared to last year.
The study also reveals that 58% of surveyed 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 environmental, social and governance performance (88%) as the top areas where they require support to drive long-term success.
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