tl;dr
The article discusses the growing acceptance of digital payments by small and medium enterprises (SMEs) in the Middle East and Africa, with over 90% of SMEs in several countries embracing digital payments. The report, published by Mastercard, highlights the benefits of digitalizing payments for SMEs...
The article discusses the growing acceptance of digital payments by small and medium enterprises (SMEs) in the Middle East and Africa, with over 90% of SMEs in several countries embracing digital payments. The report, published by Mastercard, highlights the benefits of digitalizing payments for SMEs, citing examples from Nigeria, Kenya, Egypt, and the United Arab Emirates. The article also touches on the rise of digital assets in the region and the projected growth of digital payment transactions.
Over 90% of small and medium enterprises (SMEs) in over a dozen countries across the Middle East and Africa accept digital payments and are slowly phasing cash out, a new report reveals. The third edition of the SME Confidence Index, published by global payments giant Mastercard (NASDAQ: MA), revealed that SMEs have recorded accelerated growth over the past year despite global economic shakeups, such as conflicts in Europe and the Middle East and the transfer of power in some of the largest economies.
African SMEs embrace digital payments. Across the board, SMEs have benefited massively from digitalizing payments, which has resulted in more efficient payment processes for consumers, easier reconciliation and compliance for businesses, and reduced costs. In Nigeria, 99% of SMEs accept digital payments, Mastercard found. In East Africa, Kenyan SMEs lead in digital payments with a 91% uptake. Adoption of digital payments is lower in Northern Africa, with Egyptian SMEs recording an 80% uptake.
The Middle East has also undergone a digital payments revolution, with the United Arab Emirates emerging as the regional leader. According to the Mastercard report, 91% of Emirati SMEs accept digital payments, leading to optimism about their business outlook and projections of higher revenues in 2025.
In 2024, the Middle East recorded 855 million digital payment transactions, accounting for 12% of the total global number. This figure is projected to hit three billion by 2028 as the region’s global share rises to 22%, the highest growth rate in that period. It will also place the Middle East above North America and Europe on digital payment transactions. As digital payments rise, digital assets have also recorded increased prominence in the region, with one country—Turkey—ranking 11th globally for adoption after receiving $137 billion last year. The UAE’s digital asset sector has been handed a major boost by independent enabling regulations in two of the country’s largest financial free zones: the Abu Dhabi Global Market and the Dubai International Financial Centre.