Cyber Risks Have Stalled Small Business Digital Growth
Security fears forced 40 percent of SMEs to delay digital tool adoption despite recognizing high growth potential.
Updated on Oct. 8, 2026 in Cybersecurity
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Mastercard released the 2026 SME Cybersecurity Outlook, revealing that cyber threats have become a primary bottleneck for business expansion. The survey found that while 97 percent of small-to-medium enterprises in Latin America and the Caribbean accept digital payments, security concerns are actively preventing firms from scaling.
Why it matters
Nearly half of business owners believe that robust fraud defenses could unlock at least 25 percent additional growth. The findings highlight a critical disconnect between the high adoption of digital payment tools and the lack of comprehensive security infrastructure among regional firms.
While 93 percent of SMEs report familiarity with cybersecurity principles, 20 percent of firms lack any formal response or recovery plan. This data is based on a survey of 2,400 decision-makers across 12 markets.
The players
Mastercard
A global payments technology company that facilitates digital transactions and provides cybersecurity risk-assessment tools.
Payments and Commerce Market Intelligence
A research firm that partnered with Mastercard to analyze digital payment adoption and security trends.
The details
The study, conducted in partnership with Payments and Commerce Market Intelligence, indicates that security anxiety impacts every stage of the digital transition. Firms are postponing both e-commerce integration and entry into new markets because of these risks. Mastercard provides risk-assessment tools and resources through the Mastercard Trust Center to assist businesses in building these missing recovery frameworks.
Timeline
Q2 2026: Mastercard conducted the cybersecurity outlook survey.
Next two years: SMEs identify digital sales expansion as a primary opportunity.
The Tech Race
This development follows a pattern set by the 2018 General Data Protection Regulation (GDPR), where increasing security requirements force firms to weigh the cost of compliance against market expansion. Smaller enterprises remain locked in a race to secure their infrastructure as they attempt to catch up to the digital-first benchmarks set by larger, global competitors.
Small business owners can access free risk-assessment tools through the Mastercard Trust Center to address their lack of formal recovery plans. Businesses that successfully bridge this security gap may position themselves to capture the 25 percent growth potential identified in the report.
The takeaway
The gap between digital payment adoption and cyber preparedness remains the largest hurdle for business growth in the region. Watch for future industry adoption rates of risk-assessment tools to see if firms close the 20 percent gap in recovery planning.
Further reading
Explore deeper insights on emerging threats and defense strategies in our Cybersecurity section.
Source note: This article includes information reported by Jamaica Gleaner.
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