GROWING fears about fraud and cyberattacks have emerged as major constraints on digital expansion among small and medium-sized enterprises (SMEs) across Latin America and the Caribbean (LAC), even as most of these businesses continue to embrace digital payments.

More than half — 51 per cent — of SMEs recently surveyed by Mastercard cited fear of fraud and cyberattacks among the biggest barriers to increasing their use of digital payments, while 48 per cent said cybersecurity concerns directly affect consumer trust.

The findings were contained in Mastercard’s 2026 SME Cybersecurity Outlook, which surveyed 2400 SME owners and senior decision-makers across 12 LAC markets. The study was conducted by the global payments company in partnership with Payments and Commerce Market Intelligence (PCMI)— a payments industry market intelligence firm.

Commenting on the findings, Ana Lucía Magliano, executive vice-president, services, Mastercard LAC said cybersecurity should no longer be treated solely as a technology concern, but as a business imperative.

“Our research shows that SMEs have largely embraced digital payments, but concerns about fraud and cyberattacks continue to hold many back from pursuing new opportunities. When security becomes a foundational piece of their evolution story, businesses are better positioned to expand, serve customers, and thrive,” she said.

Alongside the growing cybersecurity concerns, the study also found the issue increasingly influencing business decisions, with 40 per cent of respondents indicating that, in light of these concerns, they have had to slow or stop their use of digital tools or payments.

Another 42 per cent said they have had to delay the adoption More than half or 51 per cent of over 2,000 SMEs surveyed across the LAC cited fear of fraud and cyber attacks among the biggest barrier to growing their use of digital payments. Fraud, cybersecurity fears weigh on digital growth for SMEs across LAC — Mastercard study of new digital payment methods, while approximately one in three SMEs surveyed indicated that they had also postponed e-commerce expansion or entry into new markets.

These hesitations come even as digital payments have become deeply embedded in SME operations. Approximately 97 per cent of businesses surveyed said they accept digital or cashless payments, with 85 per cent describing these payment methods as important to their businesses.

Mastercard said the findings point to a growing confidence gap in the region, where access to digital payments is no longer the main challenge, but businesses becoming increasingly concerned about their ability to use digital platforms safely.

The shortfalls also having a direct impact on growth prospects, found half or just about 51 per cent of SMEs surveyed wanting stronger cyber security measures which they believe can enable them to achieve 25 per cent or more additional business growth. Additionally, 42 per cent identified increasing online and digital sales as one of their biggest opportunities over the next two years.

Despite the growing awareness of cyber risks, the study found many SMEs being inadequately prepared to respond to attacks.

While 93 per cent said they are familiar with cybersecurity, only 18 per cent described themselves as highly prepared to protect their businesses. One in five also reported that they have no cybersecurity response or recovery plan in place.

In identifying several areas where they need greater support, 46 per cent of businesses said they want fraud-prevention tools, while 44 per cent want recovery support following a cyber incident. Another 39 per cent said they need practical training and guidance, with a similar proportion seeking alerts and regular updates about threats and scams.

In response to the findings, Mastercard said it will continue investing in technology and developing products and services to help SMEs identify, prevent, and respond to cyber threats.

Through its Mastercard Trust Center, the global payments company currently offers a free cybersecurity education and resource hub for SMEs across Latin America and the Caribbean — providing research, training, assessments, tools, and practical guidance to help businesses strengthen their cyber resilience.

“Available through select local issuers and industry partners, solutions such as My Cyber Risk, powered by RiskRecon and ID Theft Protection, help businesses better understand cybersecurity exposures, strengthen cyber preparedness, and support identity protection,” Mastercard said, while noting its ongoing commitment to strengthen cybersecurity for SMEs across the region.

“This further aligns with our global commitment to connect and protect 500 million individuals and small businesses on their path towards financial health by 2030,” the company said.