83% of Egyptian SMEs say digital payments are key to business growth

Egyptian small and medium-sized enterprises (SMEs) are accelerating their adoption of digital technologies, modern payment solutions, and workforce development initiatives to strengthen competitiveness and drive long-term growth, according to the fourth edition of the Mastercard SME Confidence Index.

The multi-market study, which examines SME sentiment, priorities, and growth expectations across Eastern Europe, the Middle East, and Africa (EEMEA), highlights the growing role of digitalization in shaping the region’s small business landscape.

The report found that 83% of surveyed Egyptian SMEs consider digital and online payments essential to faster, more effective business growth, underscoring the rising demand for modernization and greater operational efficiency.

Simple, seamless payment experiences are also emerging as a strategic priority. Three-quarters (75%) of respondents said easy-to-use payment methods are an important driver of business growth, reflecting the increasing value of frictionless transactions in a rapidly evolving digital economy.

“SMEs continue to be a driving force behind innovation and economic growth. Across the region, these businesses are embracing digital tools, enhancing customer experiences, and investing in workforce development to strengthen their competitiveness,” said Onur Kursun, Executive Vice President, Commercial and New Payment Flows, EEMEA, Mastercard.

Adam Jones, Division President, West Arabia at Mastercard, said Egyptian SMEs’ focus on secure and efficient payment experiences reflects a long-term approach to growth, supported by advanced technologies and tailored financial solutions.

Despite accelerating digital adoption, Egyptian SMEs continue to grapple with inflationary pressures and currency volatility. Even so, 40% of surveyed businesses remain optimistic about their prospects over the next 12 months, reflecting cautious confidence despite ongoing economic uncertainty.

To navigate these challenges, many SMEs are investing in digital transformation and customer-centric strategies to improve efficiency and resilience. Mastercard said it supports businesses through solutions such as Mastercard Easy Savings and expense management tools that help reduce costs, improve spending visibility, and free up resources for growth.

The findings also point to a gradual shift toward omnichannel business models that combine physical and digital sales channels. While cash still accounts for 74% of transactions, nearly two-thirds (64%) of Egyptian SMEs now operate across both online and offline channels, reflecting changing consumer behavior and growing demand for integrated shopping experiences.

Alongside technology adoption, workforce development is becoming an increasingly important priority. More than half of respondents identified access to training and development (58%) and employee upskilling (55%) as key drivers of future business growth.

The report suggests entrepreneurs increasingly view sustainable growth as dependent on both digital investment and workforce capability. Mastercard said its SME Personas Framework helps financial institutions tailor products and services to businesses at different stages of growth, from freelancers to FMCG distributors managing complex supply chains.