Digital Payments and Innovation Driving SME Growth in Nigeria – Mastercard SME Confidence Index
Small and medium enterprises (SMEs) in Nigeria are accelerating their growth through digital payments, innovation, and strategic partnerships, according to the third edition of the Mastercard SME Confidence Index. With 99% of Nigerian SMEs now embracing digital transactions, businesses are leveraging cashless solutions to enhance efficiency, improve customer experience, and build financial resilience.
The Digital Shift: A Catalyst for SME Expansion
As Nigeria’s economy continues its digital transformation, SMEs are prioritizing secure and seamless payment solutions to maintain competitiveness. Entrepreneurs highlight benefits such as simplified payment processing, improved supplier transactions, and reduced dependence on cash handling. Looking forward, 73% of SMEs plan to expand digital payment capabilities, while 70% are focused on delivering frictionless, user-friendly payment experiences to strengthen customer engagement.
Strategic Growth Priorities: Cybersecurity, Financial Access, and Partnerships
While SMEs anticipate stable or increased revenue, they recognize cybersecurity, inflation, and financial access as critical factors shaping their growth trajectory. Strengthening digital security has become a top priority as businesses deepen their reliance on online transactions.
Access to financing remains a pressing need, with 47% of SMEs seeking funding for expansion and 27% requiring capital for day-to-day operations. Recognizing these challenges, business owners emphasize the importance of private sector partnerships, government initiatives, and international collaborations in fostering long-term resilience.
Resilience Amid Economic Challenges
Despite inflation (77%) and rising costs of goods and services (75%) posing hurdles, an impressive 78% of SMEs expect to achieve the same or higher revenue in 2024 compared to the previous year. Entrepreneurs see private sector collaborations (56%), government support (47%), and global partnerships (41%) as key drivers of business sustainability.
Mastercard’s Role in Empowering SMEs
Mastercard is actively supporting Nigerian SMEs through cutting-edge technology, financial inclusion initiatives, and strategic collaborations. In July 2023, the company partnered with Alerzo, a B2B e-commerce platform, to digitize SMEs in the fast-moving consumer goods (FMCG) sector, making digital payments more accessible.
Through its Product Express platform, Mastercard is enabling fintech companies to launch card programs quickly, improving market accessibility. Additionally, its startup engagement program, Start Path, is providing fintech firms like Duplo and Mono with operational support, commercial opportunities, and strategic investment.
To further drive digital transformation, Mastercard has introduced innovative payment solutions such as Tap on Phone, QR Pay by Link, and Payment Link, enhancing financial inclusion across Nigeria. By collaborating with governments, financial institutions, and private sector partners, Mastercard is reinforcing SME resilience, supporting their journey toward sustainable growth in an evolving business landscape.
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