Digital payments emerge as top growth driver for Bahraini SMEs, study shows

By Puja Sharma

Mastercard Survey: 96% of Bahraini SMEs believe that digital payments are critical for growth

• Nearly half of Bahraini SMEs operate across both physical and online channels, highlighting a strong foundation for omnichannel agility
• Accepting digital payments across multiple channels is seen as the highest growth opportunity by 56% of entrepreneurs
• Improving physical and digital security is ranked as a vital area of support needed for 47% of SMEs as they focus on business continuity

A significant 96% of Bahraini small and medium-sized enterprises (SMEs) affirm that digital and online payments are critical for their future growth, according to a Mastercard survey.

The Mastercard SME Confidence Index is a multi-market study that captures the sentiment, priorities and growth outlook of small and medium-sized enterprises (SMEs) across Eastern Europe, Middle East and Africa (EEMEA). The 2026 edition of the Index included a sentiment pulse survey specifically designed to capture how SMEs in Bahrain are navigating the immediate operational and macroeconomic challenges arising from the regional conflict.

As the region navigates macroeconomic challenges stemming from recent conflict, this pre-established focus on digital transformation, cybersecurity, and omnichannel expansion is expected to play a crucial role in helping local businesses adapt, maintain operations, and build resilience.

“Entrepreneurial businesses across the region continue to demonstrate incredible resilience and adaptability in the face of recent macroeconomic conditions. Their growing focus on digital capabilities and financial access serves as a vital buffer against short-term headwinds, opening up new pathways for sustainable growth and enabling them to compete more effectively in an increasingly connected and dynamic marketplace,” said Onur Kursun, executive vice president, Commercial & New Payment Flows, Eastern Europe, Middle East and Africa, Mastercard.

“The survey shows that, long before recent regional headwinds, Bahraini SMEs were already charting a course towards a resilient, digital-first future. Our focus in the Kingdom is to match this incredible entrepreneurial ambition with action. Through strong local collaborations, we are delivering the secure, seamless payment tools that empower Bahraini businesses to scale and actively contribute to Economic Vision 2030,” said Adam Jones, division president, West Arabia, Mastercard.

An established drive for digital commerce

The recent research revealed a strong consensus on the value of the digital economy. Crucially, the data showed that a robust infrastructure was already being built: at the time of the survey, 81% of SMEs accepted mobile payments, and 63% accepted online payments.

As regional economies face new pressures, this existing digital capability acts as a crucial lifeline, allowing businesses to transact efficiently and access a wider customer base despite local market disruptions.

A clear path to grow and adapt

When asked to identify the highest potential areas for business growth, SMEs pointed to accepting digital payments across multiple channels (56%) and providing seamless, user-friendly payment methods (43%).

Additionally, nearly half (48%) of the SMEs surveyed were already operating through a combination of physical and online channels. Moving forward, this desire to build a robust omnichannel strategy will likely prove essential for businesses needing to pivot their operations and maintain sales channels during periods of volatility.

Securing the future and building resilience

The Mastercard survey also underscored a strong desire among businesses to protect their operations. Maintaining and growing the business was identified as a top concern for 30% of SMEs. To support this objective, 47% of respondents noted that improving physical and digital security was a vital area where they felt support was needed.

This proactive focus on building a secure operational environment is highly pertinent today, as businesses seek to foster customer trust and safeguard against instability.

A focus on enablement

To fully realise their goals, the research indicated that SMEs felt they needed broader ecosystem enablement. (54%) expressed the need for effective regulatory support from the government, while 48% pointed to the importance of supporting, managing or upskilling their teams.

The survey also found that a significant portion of SMEs (57%) still relied on personal cards for business expenses. Closing this “formalisation gap” with commercial financial products is expected to be a key factor in helping entrepreneurs manage cash flow and build the credit profiles necessary to weather economic uncertainty.

Supporting local business

Mastercard has been actively working on initiatives and collaborations to build an enabling ecosystem for SMEs that addresses the core needs highlighted by local entrepreneurs.

As businesses across Bahrain continue to invest in growth, innovation and digital capabilities, the Mastercard survey highlights their proactive readiness to navigate current challenges and contribute to the Kingdom’s continued economic development and digital transformation.