Nigerian SMEs expect increased revenue from digital payments, innovations

Nigerian small and medium enterprises (SMEs) expect digital payments and innovation to increase their revenue. This is as more SMEs leverage digital payments and innovation to expand their reach and strengthen business operations.

According to the third edition of the Mastercard SME Confidence Index, 99 percent of SMEs in Nigeria now accept digital payments and businesses are capitalising on cashless transactions to enhance efficiency, improve customer experience, and build financial resilience.

This digital shift is enabling SMEs to grow in an evolving business environment, with many prioritising secure payment solutions and financial inclusion initiatives. “Small and medium enterprises are the backbone of economies, driving innovation, employment, and resilience.

“As digital transformation accelerates, SMEs are unlocking new opportunities through digital payments and financial inclusion,” said Dimitrios Dosis, president of Eastern Europe, Middle East and Africa, Mastercard.

He noted that the ability of these businesses to adapt and grow reflects the strength of an ecosystem that prioritises access to finance, digital enablement, and sustainable growth. Mastercard highlighted that as Nigeria’s economy embraces digitalisation, SMEs are recognising the advantages of cashless transactions in driving business efficiency.

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Many business owners highlight ease of managing payments, seamless supplier transactions, and reduced reliance on cash handling as key benefits. Looking ahead, SMEs are focused on expanding their digital payment capabilities and ensuring seamless customer experiences to sustain their competitive edge.

According to projections, 73 percent of SMEs plan to further expand their digital payment capabilities across various channels, and 70 percent are focused on providing seamless, user-friendly payment experiences to customers to drive business improvement.

SMEs are also acknowledging and focusing on cybersecurity, inflation and financial access as areas influencing business growth.

“Many SMEs also emphasise the need for broader financial access, with business owners identifying private sector partnerships, government-led initiatives, and international collaborations as key enablers for long-term success.

This highlights the growing role of collaboration in driving SME resilience and supporting businesses as they navigate an evolving financial landscape,” Mastercard stated.

Access to credit is also a priority for over three-quarters of SMEs, with 47 percent aiming to secure financing to grow their businesses and 27 percent seeking capital to maintain daily operations.

Despite challenges of inflation and rising costs of goods and services, a significant 78 percent expect to achieve the same or higher revenue this year compared to last, signalling resilience and adaptability.

“Nigerian SMEs are demonstrating remarkable adaptability and foresight by leveraging digital payment solutions to drive economic transformation. Their positive revenue outlook highlights a commitment to harnessing technology for sustainable growth,” said Mark Elliott, division president, Africa, Mastercard.