Mastercard Targets Asia’s SME Payment Complexity
Asia Pacific SMEs are rapidly adopting digital tools, new payment methods and artificial intelligence. But the proliferation of platforms and payment options is creating a new problem.
Small and medium-sized enterprises across Asia Pacific are becoming increasingly digital, but managing the growing number of tools, accounts and payment methods is emerging as a significant operational challenge, according to Mastercard.
The payments group’s inaugural Dreamonomics Report found that Asia Pacific SMEs use an average of five business tools, while 94 percent are interested in adopting at least one additional tool.
At the same time, businesses use an average of four different payment methods for their expenses. Electronic bank transfers are used by 59 percent of respondents, instant payments by 55 percent, debit cards by 52 percent and credit cards by 47 percent.
The growing number of options may provide flexibility, but Mastercard argues that it also creates additional complexity around cash flow management and reconciliation.
Demand for Integration
Three in four SMEs in the region – 74 percent – said integrated business tools are critical.
«Businesses don’t think in terms of payment rails or funding sources. They think about paying suppliers, managing cash flow and keeping operations moving,» said Anouska Ladds, executive vice president, Commercial & New Payment Flows, Asia Pacific at Mastercard.
India appears particularly receptive to new payment solutions. Some 63 percent of Indian SMEs surveyed expressed interest in real-time payments, compared with 51 percent across the region.
Another 39 percent are interested in a business card combining credit and debit functionality with additional controls.
Mastercard Starts in India
Against this backdrop, Mastercard and City Union Bank are piloting Mastercard One Credential in India.
The proposition allows multiple eligible payment relationships to be linked to a primary card. Transactions can then be routed according to predefined preferences, including transaction size or merchant category.
For SMEs, Mastercard says the system can make it easier to separate personal and business expenses while providing greater flexibility over how individual payments are funded.
India is the first Asia Pacific market mentioned by Mastercard for the SME rollout.
Cybersecurity Gap
The survey also points to a significant gap between SMEs’ concerns about cyber risks and their actual investment in protection.
Some 70 percent of Asia Pacific SMEs consider protecting their businesses against cyber threats a high priority. However, just 39 percent currently use cybersecurity tools.
Artificial intelligence is meanwhile becoming increasingly relevant. Almost three-quarters of SMEs surveyed said they were excited about AI’s potential, while 47 percent identified AI-powered fraud and security protection as the capability they would most like to receive from a financial provider.
The findings are based on a 2026 survey of more than 6,000 SMEs across 18 countries. The Asia Pacific sample comprised more than 1,000 businesses in Australia, China, India and Indonesia.
