The Asia-Pacific region’s SMEs are embracing digital tools, new payment methods and AI to grow their businesses. But as they adopt more technology, many are also looking for simpler, more connected ways to manage their operations, according to Mastercard.
This is based on a 2026 survey of 6,615 SMEs across 18 countries, including over 1,000 respondents across Australia, China, India and Indonesia.
Findings show that 74% of Asia Pacific SMEs are optimistic about the future of their business and 61% frequently experiment with new ideas. Yet, 69% prioritize predictability and stability, closely tracking the global figure of 68%.
For many SMEs, growth is no longer bound by access to technology. The challenge is making an expanding mix of tools, payment methods and financial relationships work together in ways that support better and not just faster decisions.
“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, Mastercard EVP in APAC.
“Every business decision today has a financial dimension. SMEs need payment experiences that fit how they actually operate, giving them the flexibility to stay in control of their working capital, pivot faster to change and adapt to new trends and their customers’ needs,” said Ladds.
APAC SMEs already use five business tools on average, with 94% interested in adopting at least one business tool they do not currently use, compared with 89% globally.
As technology adoption grows, so does the need to manage it more effectively. Three in four SMEs (74%) say integrated tools are critical – they are eager to adopt digital tools but need them to support day-to-day decision-making.
The complexity challenge extends to payments. SMEs use four payment methods on average for business expenses, including electronic bank transfers (59%), instant payments (55%), debit cards (52%), credit cards (47%).
While payment choice gives SMEs flexibility, managing multiple accounts and funding sources creates operational friction and lag in reconciliation. The result can be blind spots in cash flow, more time trapped in administration and compromise on the customer experience and growth.
India shows how quickly SME expectations are evolving — 63% are interested in real-time payments, compared with 51% regionally; 45% are open to flexible digital payment solutions; and 39% are interested in a combined credit/debit business card with controls.
To help address these needs, Mastercard and City Union Bank (CUB) are piloting in India an initiative that brings eligible consumer and commercial payment relationships together under a single credential.
The project allows multiple eligible payment relationships to be linked to a primary card, with transactions routed based on preset preferences such as transaction amount and merchant category.
For SMEs, this can help separate personal and business expenses while giving greater flexibility over how payments are funded.
SMEs increasingly view security as a business capability rather than a standalone technology investment. Seven in 10 (70%) APAC SMEs say protecting their business from cyber threats is a high priority, yet only 39% currently use cybersecurity tools.
AI is also moving into day-to-day business operations. Nearly three in four (74%) SMEs are excited about its potential, and fraud and security protection is the AI-powered capability they most want from a financial provider (47%).
As digital operations expand, businesses are looking for protection to be embedded into the financial tools they already use, rather than managed separately.
