Seamless cross-border payments a gateway to economic growth
A recent Mastercard report says a number of SMEs have implemented digital solutions and gained business out of the country
Data from Mastercard’s 2022 Borderless Payments Report has revealed two in five (42%) small and medium-sized businesses (SMEs) in SA are earning more money than before the pandemic.
Online business and international sales are key drivers, with three-quarters (77%) recording above-global-average growth in online sales, while 76% are planning to do more business internationally in the future.
The research, which covered over 3,000 small businesses from around the world, highlighted that 75% of SMEs had to make changes to their business model to survive the pandemic — 79% in SA — while 75% of those in SA believe it has changed how they will do business forever.
The pandemic has accelerated digital transformation to tap into cross-border opportunities, with more than half (51%) saying they now do more business internationally.
Almost seven in ten (68%) respondents credit cross-border payments with enabling their business to grow. This makes it clear that cross-border payments will be a key focus for business growth in SA, and its economic recovery.
Fifty-eight percent said they are now making and receiving more cross-border payments than they were before the pandemic.
More than two-thirds (69%) say the pandemic has allowed them to source more competitive quotes from suppliers across borders and 46% say using international suppliers reduces risk.
Cross-border payment systems must become faster, cheaper and more secureStephen Grainger, executive vice president, Mastercard
“The unprecedented disruption introduced by the pandemic has realigned SA and global economics, with many SMEs looking towards prospects in new markets. With small businesses in SA and across the world growing their international customer and supplier networks at pace, especially online, it’s crucial that financial institutions have the right cross-border solutions in place to support them.
“Cross-border payment systems must become faster, cheaper and more secure. Through a single point of access, Mastercard cross-border services allows businesses to send and receive money safely and with the certainty they crave,” says Mastercard executive vice-president Stephen Grainger.
Through partnerships with financial institutions around the world, Mastercard is empowering businesses to address these issues and improve cross-border payments for enterprises and individuals.
Mastercard cross-border services allow people and businesses to send and receive money securely, and with upfront visibility of timing and fees to provide people and businesses with more confidence and predictability.
The full Mastercard Borderless Payments Report 2022 is available here.
This article was paid for by Mastercard.