South Africa’s small and medium-sized enterprises (SMEs) are demonstrating increasing digital sophistication in the way they do business.
Online payment acceptance among South African businesses surveyed is among the highest in the Eastern Europe, Middle East and Africa (EEMEA) region at 80%, while most already use dedicated business cards to manage their spending.
According to the Mastercard study, despite navigating an evolving economy, half of South African SMEs remain optimistic about the year ahead, with 43% expecting revenue growth.
The Mastercard SME Confidence Index is a multi-market study that captures the sentiment, priorities and growth outlook of SMEs across the EEMEA region, including South Africa.
South African SMEs that took part in the survey demonstrate a strong digital foundation. Alongside high levels of online payment acceptance (80%), bank transfers are well established and account for the majority (64%) of transaction volumes.
Businesses see the greatest potential for growth in offering simple, seamless and user-friendly payment methods (55%), followed closely by ensuring safe and cyber-resilient payment processing (51%), reflecting a clear focus on both convenience and trust.
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“South African businesses are operating with a level of digital and commercial maturity that positions them strongly within the region. They have embraced online payments, manage their finances [using] dedicated business tools, and they are clear about where their next opportunities lie.
“Our role is to keep working alongside them, providing the secure and seamless solutions that help them turn that sophistication into sustained growth,” says Gabriel Swanepoel, the division president for Africa at Mastercard.
This blend of digital strength and forward-looking thinking is opening up new opportunities for South African businesses as they plan their next phase of expansion.
“Entrepreneurial businesses across the region continue to demonstrate resilience, adaptability and ambition.
“As they navigate change, their increasing focus on digital capabilities and access to finance is opening new pathways for sustainable growth, helping them compete more effectively in an increasingly connected marketplace,” says Onur Kursun, executive vice president of commercial and new payment flows of EEMEA at MasterCard.
Resilience in a changing economy
South African SMEs continue to navigate a demanding economic environment with characteristic resilience.
While inflation has weighed on many businesses over the past year, entrepreneurs are drawing confidence from the progress emerging around them.
Almost two-thirds (64%) of survey participants identified technological advancement as a positive influence on their businesses, while 55% pointed to the growing adoption of artificial intelligence and machine learning, suggesting growing openness to innovation.
A foundation of commercial maturity
One of the key strengths highlighted by the study is the commercial maturity of South African SMEs.
The vast majority (85%) use a business debit or credit card to manage their expenses rather than relying on personal cards, providing greater visibility and control over their finances.
This disciplined approach places businesses in a strong position to take advantage of more sophisticated financial tools and credit solutions as they grow and scale.
Investing in growth and capability
As they look ahead, South African SMEs are focusing on the building blocks of long-term growth.
Beyond seamless and secure payments, they identify training and upskilling their teams as key areas of focus, alongside effective regulatory support and stronger physical and digital security.
Nearly a third (30%) sought external funding in the past year, and 31% are actively seeking additional credit to invest in their businesses, showing a clear appetite to grow.
As South African SMEs build on their digital strengths and commercial discipline, the Mastercard SME Confidence Index highlights both their resilience and their readiness to capitalise on new opportunities.
By combining digital innovation and capability building, Mastercard remains committed to supporting SMEs as they scale and contribute to a more inclusive and dynamic digital economy.
Brought to you by Mastercard.
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