Over 90% of SMEs (small and medium -sized companies) in over a dozen countries in the Middle East and Africa accept digital payments and are Slowly phasing out paymentsA new report reveals.
The third edition of SME Confidence Index, published by Global Payments Giant Mastercard (Nasdaq: MA), revealed that small and medium -sized companies have registered faster growth over the past year despite global economic shaking, such as conflicts in Europe and the Middle East and the transfer of power in some of the largest economies.
African small and medium -sized companies include digital payments
All over the line has small and medium -sized companies benefited massively by Digitization paymentsWhich has resulted in more efficient payment processes for consumers, simpler reconciliation and compliance for companies and reduced costs.
“SMEs are the backbone of economies, run innovation, employment and resilience. When digital transformation accelerates, small and medium -sized companies lock new opportunities through digital payments and financial inclusion, ”commented Dimitrios dose, Mastercard President of Eastern Europe, the Middle East and Africa.
In Nigeria, 99% of small and medium -sized companies accept digital payments, Mastercard Funs.
“Nigerian small and medium -sized companies show remarkable adaptability and foresight by utilizing digital payment solutions to drive financial transformation,” commented Mark Elliott, the company’s president of Africa.
For Nigeria, digital payments have been a lifeline for its 230 million inhabitants as a cash deficiency brought one of Africa’s largest economies on the knees. Nigerian’s starvation for cash, which dominated daily payments, the Nigerians turned to digital platforms to pay for essentials. Surprisingly, Era’s uptake was barely affected when the Nigerians continued to reject Africa’s first and only Central Bank digital currency (CBDC). A new pronounced stablecoin that Launched This year hope to go better.
In eastern Africa, Kenyan small and medium -sized companies lead in digital payments with 91% uptake.
“When small and medium -sized companies in Kenya continue to include digital transformation, access to secure payments, financial services and strategic partnerships is still the key to their success,” Elliott abandoned.
Kenya’s adoption of mobile money is among the highest global and has been the basis for the country’s Digital payment revolution. In recent years, Kenyans have increasingly adopted digital payments, especially for cross -border transfers, as an alternative to the costly traditional channels. An International Monetary Fund (IMF) report earlier this year Funs that Kenyans have implemented millions of dollars in Stablecoins to pay for imports from Asian countries.
The adoption of digital payments is lower in northern Africa, with Egyptian small and medium -sized companies that register an 80% uptake.
“When Egypt’s small and medium -sized companies continue to develop, it will be central to their success,” to adopt digital payments and innovative financial solutions, ” commented Adam Jones, MasterCard President of Western Arabia.
The Middle East’s digital payment revolution
The Middle East has also undergone a digital payment revolution, where the United Arab Emirates appears as regional leaders. According to the Mastercard report, 91% of Emirati and medium -sized companies accept digital payments, which leads to optimism about their business prospects and forecasts of higher revenues in 2025.
“When the United Arab Emirates promotes its vision for a thriving digital economy, small and medium -sized companies play a crucial role in driving innovation and growth. Their confidence in the future reflects not only their resilience but also the effects of an ecosystem designed to support their success, ” commented Mastercards East Arabia President, JK Khalil.
MasterCard’s results are adapted to a previous report from Singaporean Fintech Consultancy Leantech, which found that almost two in three inhabitants in the Middle East prefer to pay with one Digital wallet. Credit cards were a remote second of only 17%. Only 3% of respondents chose cash, which adapts to other finds about the dying use of banknotes.
By 2024, the Middle East registered 855 million digital payment transactions and accounted for 12% of the total global number. This figure is projected Meeting three billion in 2028 when the region’s global proportion rises to 22%, the highest growth rate during that period. It will also place the Middle East above North America and Europe on digital payment transactions.
As digital payments increase, digital assets have also registered increased appearance in the region, with a country – Turkey-Ranking 11th globally for adoption after receiving $ 137 billion last year.
While Turkey led in the total volume, the United Arab Emirates registered the highest growth in the assumption, increased by positive rules. UAE’s digital asset sector has been given a large upswing of independent enabling regulations In two of the country’s largest financial free zones: Abu Dhabi Global Market and Dubai International Financial Center.
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