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, according to the third edition of the Mastercard SME Confidence Index.
The latest findings reveal that 90% of 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. 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. 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 prioritizes access to finance, digital enablement, and sustainable growth,” said Dimitrios Dosis, president Eastern Europe, Middle East and Africa, Mastercard.
“As South Africa’s SMEs continue to adapt to a rapidly evolving economy, digital payments, sustainability, and cybersecurity are becoming key priorities for growth. At Mastercard, we are dedicated to providing businesses with the tools, insights, and secure payment solutions they need to scale, improve efficiency, and build resilience. Through strategic partnerships and financial education initiatives, we aim to support SMEs in navigating challenges and seizing new opportunities in the digital economy,” said Mark Elliott, division president, Africa, Mastercard
Digital payments at the core of SME expansion
As South Africa’s economy continues to digitalize, 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.
SMEs plan growth with ESG measures
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.
In December 2024, Mastercard announced a strategic partnership with SME South Africa, the leading business resource platform for the country. The partnership saw a free workshop aimed at educating SME owners to leverage digital solutions, enhance business resilience and manage a team while fostering their growth and creativity – directly addressing support areas for SMEs.
Mastercard’s commitment to SMEs in South Africa
Last year, Mastercard signed an agreement MTN Group Fintech, aimed to link millions of individuals and small businesses in Africa with digital tools for secure mobile payments, thus enhancing access to the advantages of a digital economy. The company also signed with Johannesburg-based fintech company SAVA to support SMEs through innovative payments technology and infrastructure.
The Mastercard SME Confidence Index serves as a key benchmark for understanding the evolving landscape of small businesses in South Africa. By working closely with fintech partners, banks, and government agencies, Mastercard continues to provide tailored payment solutions, access to financing, and business education programs that empower SMEs to navigate challenges and seize new opportunities.
From driving digital payments adoption and expanding access to credit to fostering financial inclusion and upskilling entrepreneurs, Mastercard remains dedicated to strengthening South Africa’s SME ecosystem and supporting businesses as they adapt to an increasingly digital economy.
