Small and medium-sized enterprises (SMEs) in South Africa are demonstrating increasing digital maturity in their operations. According to a Mastercard study, the share of online payment acceptance among respondents reaches 80%, which is one of the highest figures in the EEMEA region. Furthermore, most businesses participating in the study use corporate cards instead of personal ones for expense management.
The Mastercard study indicates that despite economic changes, half of South African SMEs are optimistic about the coming year, with 43% expecting an increase in revenue.
Mastercard SME Confidence Index
The SME Confidence Index is a multi-market study that reflects the sentiment, priorities, and growth forecasts of SMEs in Eastern Europe, the Middle East, and Africa, including South Africa. South African SMEs participating in the survey possess a strong digital foundation. In addition to a high level of online payment acceptance (80%), bank transfers are well-developed, accounting for the majority (64%) of transaction volume. Businesses see the greatest growth potential in providing simple, seamless, and convenient payment methods (55%), which is closely linked to ensuring secure and cyber-protected payment processing (51%), indicating an emphasis on both convenience and trust.
Gabriel Swanepoel, President of Mastercard's Africa division, noted: 'South African business operates at a level of digital and commercial maturity that puts them in a strong position in the region. They have adopted online payments, manage their finances using specialized tools, and clearly understand where their next opportunities lie. Our role is to continue working with them, providing safe and seamless solutions that help them turn this sophistication into sustainable growth.'
This combination of digital strength and foresight opens up new prospects for South African businesses as they plan their next stage of development.
Onur Kursun, Executive Vice President of Mastercard for Commercial Flows and New Payments in EEMEA, stated: 'Entrepreneurial businesses across the region continue to demonstrate resilience, adaptability, and ambition. By overcoming changes, their growing focus on digital capabilities and access to financing opens new avenues for sustainable growth, helping them compete more effectively in an increasingly connected market.'
Resilience in a Changing Economy
South African SMEs are coping with challenging economic conditions, showing characteristic resilience. Although inflation has pressured many businesses over the past year, entrepreneurs draw confidence from observed progress. Nearly two-thirds (64%) of survey participants cite technological progress as a positive influence on their business, and 55% mention the growing application of artificial intelligence and machine learning, indicating increasing readiness for innovation.
Foundation of Commercial Maturity
One of the key strengths noted in the study is commercial maturity. The vast majority of SMEs (85%) use a corporate debit or credit card to cover expenses, rather than a personal one, which provides them with better financial transparency and control. This established discipline strongly strengthens the position of South African businesses to utilize more complex financial instruments and credit solutions as they scale.
Investing in Growth and Opportunities
When planning for the future, South African SMEs are focusing on the fundamentals of long-term growth. In addition to seamless and secure payments, they identify employee training and upskilling as a key priority, alongside effective regulatory support and strengthening physical and digital security. Nearly a third (30%) sought external financing in the last year, and 31% are looking for additional credit to invest in their business, highlighting a clear appetite for growth.
As South African SMEs rely on their digital advantages and commercial discipline, the Mastercard SME Confidence Index highlights both their resilience and their readiness to seize new opportunities. By combining digital innovation and capacity building, Mastercard continues to support SMEs in scaling and fostering a more inclusive and dynamic digital economy.