The fourth edition of the Mastercard SME Confidence Index found that 83 percent of surveyed Egyptian SMEs view digital and online payments as essential for accelerating business growth, reflecting a growing push toward digitization despite a challenging macroeconomic environment.
The survey, which tracks the sentiment, priorities, and growth outlook of SMEs across Eastern Europe, the Middle East, and Africa (EEMEA), also found that 75 percent of respondents consider simple, seamless and user-friendly payment methods a key driver of business expansion, highlighting the growing importance of frictionless customer experiences.
Despite this digital momentum, confidence remains subdued. Only 40 percent of Egyptian SMEs said they are optimistic about business prospects over the next 12 months, as companies continue to navigate inflationary pressures and the lingering impact of currency depreciation.
Rather than scaling back, however, many businesses are investing in digitization and customer-focused solutions to improve operational efficiency and support long-term growth, according to the report.
Cash remains the dominant payment method, accounting for 74 percent of transactions. Nevertheless, the survey points to a gradual shift toward digital commerce, with 64 percent of SMEs now operating through both physical and online sales channels in response to changing consumer behaviour and rising digital purchasing.
The report also highlights a growing focus on human capital. Around 58 percent of respondents identified access to training and development programmes as a key factor for future growth, while 55 percent said employee upskilling would be critical to improving competitiveness, suggesting that businesses increasingly view investment in skills alongside technology as essential for sustainable expansion.
"SMEs continue to be a driving force behind innovation and economic growth," said Onur Kursun, executive vice president for Commercial and New Payment Flows at Mastercard's EEMEA division. He said businesses across the region are increasingly adopting digital tools, improving customer experiences, and investing in workforce development to strengthen their competitiveness.
Adam Jones, division president for West Arabia at Mastercard, said Egyptian SMEs are increasingly prioritizing secure, seamless payment experiences and connected business models as they adapt to a more digital economy.
The company said it continues to support SMEs through digital payment technologies, cybersecurity services, mentoring programmes, and data-driven business solutions. It also highlighted its SME Personas Framework, which helps financial institutions tailor financial products to different business segments, alongside services such as Mastercard Easy Savings and expense management solutions designed to help businesses reduce operating costs and improve cash flow management.
SMEs and MSMEs are now a central pillar of Egypt’s private sector, representing the overwhelming majority of firms and a large share of GDP and employment.
Egypt has built a dedicated SME policy architecture during the past decade, with the Micro, Small and Medium Enterprises Development Agency (MSMEDA) as the lead institution for SME and entrepreneurship support.
MSMEDA’s mandate is backed by MSME Law No. 152/2020, which unified the definition of MSMEs and introduced tax and non‑tax incentives to encourage formalization, growth, and integration into the financial system.
Under Egypt Vision 2030, developing SMEs and entrepreneurship is explicitly framed as a driver of inclusive and sustainable growth, productivity, and regional development. Current strategic priorities highlighted in OECD and national documents include easing regulatory burdens, improving access to finance (including fintech and digital tools), supporting innovative and export‑oriented SMEs, and strengthening business advisory and monitoring systems.
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