Shapeshifters of growth
South Africa’s nearly 3 million small and medium enterprises (SMEs) are responsible for more than 60 per cent of the country’s employment and roughly 34 per cent of gross domestic product, according to industry estimates.
These are not abstract economic indicators. Behind them are spaza shop owners in Soweto, hairdressers in Durban, fresh produce sellers in Limpopo – people whose daily trade keeps families fed and communities running.
Yet, the gap between what these businesses contribute and what they receive in return remains stark.
The IFC 2024 data estimates a $5.7-trillion global credit gap for micro, small and medium enterprises (MSMEs), a figure that swells to $8-trillion when informal businesses are included.
In emerging markets, 70 per cent of MSMEs lack adequate financing. For South Africa with its high unemployment rates, this is more than a funding shortfall.
It is a structural break on the very businesses best positioned to absorb workers and create livelihoods.
At Mastercard, we believe that one of the most transformative levers for SME growth is acceptance and enabling access to tailored products.
The ability for merchants to receive digital payments simply and securely.
When a business can accept a card, a phone tap or a QR code, it does more than complete a transaction. It can help a business enter the formal economy over time.
It builds a verifiable financial history. It becomes visible to lenders, suppliers and new customers.
Bundled acceptance and tailored issuing solutions can serve as a bridge between informality and opportunity.
Why bundled solutions change everything
Consider the numbers. Mastercard has tripled its global acceptance locations to more than 150 million – in-store and online.
Across Africa specifically, Mastercard grew its acceptance network by 45 per cent in 2025, a milestone that brings millions more consumers and small businesses into the continent’s fast-expanding digital economy.
South Africa has a highly banked population, yet everyday transactions, particularly in the informal sector, remain largely cash-based.
That is beginning to change, and the shift is already visible in South Africa.
Findings from Mastercard’s SME Confidence Index show that, according to respondents surveyed, 90 per cent of South African SMEs report adopting digital payments.
Businesses recognise seamless supplier payments (89 per cent), more efficient multichannel transactions (87 per cent), and quicker access to revenue (72 per cent) as the most significant advantages of digital payments.
The direction is clear. Businesses are ready to embrace a digital Africa. Digital acceptance does more than replace cash at the till.
It enables SMEs to track and manage their expenses, build verifiable transaction histories and encourage card spend, all of which reduce cash dependence and accelerate the formalisation of the informal economy.
However, acceptance cannot remain the preserve of large retailers with dedicated point-of-sale terminals alone.
This is where solutions that meet businesses halfway are critical. Mastercard’s Tap on Phone technology – now live in over 115 markets – is enabling small merchants to turn any smartphone into a payment terminal.
Paired with real-time SME account and card issuance, physical or virtual, it allows merchants to accept payments and manage their business finances in one step.
A merchant that can accept a card, pay suppliers digitally and separate personal from business expenses is building a financial track record, and with it, a path to accessing capital in the medium to long term.
For a street vendor in Johannesburg or a tour operator in Cape Town, this is the difference between being part of the digital economy and being left outside it.
From transactions to trust
Growth built on digital payments only works if people trust the system.
This is where Mastercard’s investment in security infrastructure becomes critical.
Mastercard’s tokenisation service, MDES, now powers 30 per cent of all Mastercard transactions globally, processing one billion tokenised transactions weekly.
However, tokenisation extends well beyond securing acceptance at the point of sale.
It underpins the virtual cards and tokenised credentials that allow SMEs to make supplier payments securely online, and powers digital wallets like Apple Pay and Samsung Pay that consumers increasingly expect merchants to accept.
Combined with artificial intelligence-driven fraud detection, this layered security means digital payments are not just convenient; they are widely regarded as a secure way to transact.
For SMEs, where a single fraud incident can be devastating, this level of protection directly influences whether a business owner chooses to go digital or stays with cash.
Click to Pay, Mastercard’s streamlined online checkout experience, is live in numerous markets and supported by a wide range of payment enablers.
By bringing tokenisation and payment passkeys together, it makes the online buying experience as seamless as tapping in-store, opening up e-commerce to small businesses that previously found it too complex or too risky.
Beyond payments, building ecosystems that work
Acceptance is only the starting point. Sustainable growth requires more.
SMEs need access to working capital, financial management tools and connections to broader markets.
This is where the real work of economic inclusion happens. And, it demands collaboration across sectors.
This is also where bundled acceptance and issuing solutions unlock real value.
When a merchant who accepts digital payments is also issued an SME card with integrated spend management and access to working capital, the entire financial life cycle of that business comes into view.
Acceptance generates revenue. Issuing enables that revenue to be managed and reinvested.
Together, they create the financial visibility that opens the door to credit.
Mastercard offers a broad suite of bundled payment solutions designed to help SMEs manage expenses, control card spend and streamline operations, tailored to the diverse needs of businesses, from start-ups to scaling enterprises.
Mastercard’s collaboration with African fintech SAVA, through its SME enablement programme Mastercard Strive, empowers Africa’s small businesses through financial management technology designed for the realities of operating in emerging markets, where a robust bookkeeping tool can be as valuable as a line of credit.
Our collaboration with BoxCommerce to launch a Mastercard-powered prepaid card provides SMEs with fast, secure and direct access to their earnings.
Available in virtual and physical form and fully integrated into the BoxCommerce merchant dashboard, the cards allow payouts to be received in near real-time, helping SMEs manage cash flow more effectively and reinvest earnings directly into inventory and operations, without relying on traditional banking systems.
Mastercard Move enables financial institutions to provide fast, secure cross-border payments through mobile platforms at lower costs and with greater transparency.
For a South African SME importing goods from Kenya or exporting crafts to Europe, this ability to send and receive international payments without prohibitive fees is the key difference between a local operation and a global one.
Redefining what success looks like
For too long, the narrative around African SMEs has centred on survival. Resilience is celebrated, but it should not be the ceiling.
The question is no longer whether small businesses can endure. It is whether the systems around them are built to support and help them thrive in the digital era.
Africa’s projected $1.5-trillion digital payments market by 2030 is estimated to represent an enormous opportunity, but that figure only becomes real when spaza shops, small vendors and township cafes can all participate in this economy equally.
Over time, when acceptance becomes more universal, it can widen tax bases, support employment formalisation and help reduce economic exclusion.
Mastercard’s role in this evolution is intentional. Empowering SMEs is a strategic priority, not only to sustain businesses, but also to enable them to grow with purpose.
That commitment is reflected in Mastercard’s goal to connect and protect 500 million people and small businesses on their pathways to financial health by 2030.
By enabling access to the right tools, technology and financial solutions, SMEs are better positioned to move beyond resilience and towards meaningful impact. The future will be shaped by those who build it.
For South Africa, that means three million small businesses – and the ecosystems that choose to back them.
Click here to learn more about the Mastercard SME Confidence Index.
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