Mastercard survey: SMEs seek broader digital tools

A recent Mastercard survey of small and medium-sized enterprises found firms want expanded digital tools. The survey sampled owners and finance decision-makers across retail, hospitality, professional services and light manufacturing.

Respondents identified payment processing, cash-flow management, integrated accounting and customer analytics as top priorities for investment and support. Firms highlighted faster online and mobile payments, automated invoicing and reconciliation, and clearer cash-flow forecasting as immediate needs. Many also sought simpler digital onboarding and lending embedded in payment and accounting platforms.

Businesses reported that fragmented systems and manual processes increase administrative work and limit growth. Examples included time-consuming reconciliation between sales channels and bank accounts, limited visibility into short-term cash positions and difficulty obtaining timely working capital. Several respondents relied on a mix of bank portals, third-party accounting software and standalone point-of-sale systems that do not always sync.

Survey responses showed demand for tools to attract and retain customers. Small firms indicated interest in integrated digital marketing features, payment-linked loyalty programs and customer data dashboards that summarize purchasing patterns. Respondents said packaged solutions combining commerce, payments and customer management would reduce the need to stitch together multiple suppliers.

Security and skills were flagged as barriers to adoption. Many respondents reported that clearer security guarantees and straightforward training or support would increase their willingness to try new products. Owners noted concerns about fraud and the complexity of complying with differing payments regulations.

The report identified opportunities for banks, card networks and fintech firms to expand offerings for smaller companies. Respondents mentioned integrated payment-to-accounting workflows, faster merchant onboarding and credit products that use real-time transaction data to assess risk. Several welcomed embedded finance options that make credit and working-capital products accessible within the apps they already use.

Background information in the survey noted that small businesses increased digital activity since the pandemic, with more sales online and wider adoption of cloud-based accounting tools. Despite that shift, many firms have yet to replace legacy processes in billing, reconciliation and payroll.