Encouraging digital merchant payment acceptance: Emerging insights from around the world

In Tashkent, Uzbekistan’s capital and largest city, Olesya and Azamat are busy running their respective businesses. Olesya is an entrepreneur who runs a small handmade soap shop in one of Tashkent’s indoor markets. Azamat is a skilled woodworker who creates handmade décor and furniture items, which he sells in his shop and at local craft fairs. While soap and wood may not have much in common, Olesya and Azamat do: they are both artisans, small business owners, and recent adopters of MayaSoft’s MARTA mobile point-of-sale (POS) solution for merchant payments.

In partnership with Mastercard Strive, MayaSoft’s MARTA POS solution operates on any NFC-enabled smartphone and can accept payments in areas of poor connectivity through a text-based transfer method. It also offers merchants faster settlement options, reducing the time merchants need to wait for POS payment proceeds to clear, helping business owners improve cash flow and keep their businesses running smoothly. By providing affordable and accessible digital payment solutions, this partnership is accelerating the digital transformation of small businesses as Uzbekistan moves toward a cashless economy.

When small businesses adopt and accept digital payment solutions, they can boost their efficiency and drive growth in both sales and profits. For example, our partner Accion found that when small business owners used digital payment solutions, 75% reported that saving time was the most important benefit they realised. The Better than Cash Alliance (BTCA) found that merchants who adopt digital payments see a 54% increase in their monthly sales revenue. Researchers in Mexico and Nigeria observed similar results.

Insights on encouraging digital payment acceptance

Across the globe, Mastercard Strive is collaborating with innovative partners and researchers to better understand what works — and what holds small retailers back — when it comes to digital merchant payments. In Mexico, a research project supported by the Mastercard Center for Inclusive Growth tested interventions designed to address the frictions that hinder the adoption of merchant payments. In Samoa, our partner SkyEye recently shared some reflections on their MauaPOS Android solution. Through partnerships and external research efforts, we are beginning to uncover several important insights into promoting digital payment acceptance by small merchants:

• A ‘human touch’ is key to successful merchant acquisition and onboarding of digital payment acceptance solutions: In Mexico, research showed that just two in-person visits offering onboarding support boosted POS adoption among small retailers by 21 percentage points. Researchers also found that nearly 52% of participating retailers encountered a major hurdle during onboarding — one that would likely have halted adoption without direct, in-person support. In Uzbekistan, MayaSoft has observed that human interaction has led to the biggest conversion rates between merchants who trial and adopt the MARTA solution, with agents supporting the POS onboarding and training leading the charge. Similarly, Accion found that human touch remains necessary for micro- and small enterprises due to concerns about misuse and identity theft associated with digital financial services.
• Incentives can encourage merchants to adopt digital payments, and in some cases, lead to stronger business outcomes: Some evidence suggests that incentive frameworks can bring value to merchants by nudging them into habitual digital payment usage. Incentives can include cashback offers, fee discounts, loyalty programs, or other product offers. However, the impact is likely market-specific and case-by-case. For example, waiving commission fees for POS devices in Mexico had no incremental effect on retailer adoption (although it did drive further increases in small business sales and profits). Overall, incentive programs need to be transparent and deliver rewards promptly to drive successful merchant adoption.
• Enhance the value and relevance of digital payment acceptance solutions for small businesses: According to CGAP, most small businesses do not perceive a pressing need to change their payment systems, as they view cash as a cheaper and more convenient payment method that meets their needs. For digital payment products to be a compelling alternative to cash, they must offer equal convenience plus added benefits. Bundled solutions can enhance value, as merchants often don’t see the benefit of standalone acceptance products. For example, by bundling merchant payments with loans, Kopo Kopo achieved a 42% increase in payment volumes in Kenya for merchants who utilized loans. Our partners report that small retailers highly value POS features such as enhanced security, inventory management, and reporting and analytics.
• Empower small businesses to act as digital payments champions: Digital acceptance solutions function within a two-sided market, where success depends equally on strong customer demand for digital payments and merchant adoption. In Mexico, one group of retailers received eight one-hour in-person visits focused on helping them market the benefits of digital payments to their customers. This led to a 13-point increase in adoption rates, and even a year later, retailers continued to receive more digital payments each month. MayaSoft found that word-of-mouth acquisition from existing MARTA users was an efficient way to convert their fellow small businesses to adopting the solution. Similarly, BTCA found that word-of-mouth recommendations from trusted peers and respected authority figures are more likely to influence merchant payment adoption than advertising alone. In India, one study identified peer influence as a significant factor in microbusinesses’ intention to adopt digital payments.

Back in Tashkent, Olesya and Azamat are seeing greater efficiencies in their businesses since using the MARTA mobile POS. With Olesya’s smartphone always charged, she no longer faces service interruptions. She’s also able to attend seasonal fairs and pop-up events with no setup burden, which has proven critical in helping her expand her customer reach. Azamat has experienced faster settlement of POS proceeds, and since MARTA accepts all card types, they no longer need to juggle multiple terminals or apps to process payments.

Thanks to our partners and the broader small business ecosystem, we know that small business owners are willing to embrace digital merchant payments when the solutions offered are relevant, reliable, and supported by trusted human connections. From enhancing the value of POS solutions to the role of peer influence, a range of strategies can help overcome the barriers that prevent merchants from adopting digital solutions. Together, these approaches can help accelerate merchant adoption, unlocking business growth and resilience, and greater financial inclusion. By streamlining payment processes and reducing operational hassles, these solutions allow business owners to focus on what they do best — running and growing their businesses.