South African e-commerce platform BoxCommerce has partnered with Mastercard to introduce a prepaid card system aimed at helping small and medium-sized enterprises access their earnings instantly, addressing persistent cash flow constraints that continue to limit the growth of informal and formal businesses across the country.
The partnership, announced on January 19, enables merchants operating on BoxCommerce’s platform to receive payments through virtual and physical prepaid Mastercard cards, allowing them to reinvest revenues without waiting for delayed settlements from traditional banking systems.
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For many small businesses, payment delays remain a structural obstacle. Entrepreneurs often wait days or weeks to access digital sales proceeds, limiting their ability to replenish stock, pay suppliers, or meet operational expenses. The new system is designed to shorten that cycle, converting digital transactions into immediately usable funds.
Craig McLeod, chief executive of BoxCommerce, said the company is seeking to move beyond its traditional role as an online retail enabler by embedding financial tools into its platform.
“Our focus is on giving entrepreneurs practical systems that allow them to grow sustainably,” he said. “Faster access to earnings means businesses can respond to demand, manage cash flow, and reinvest with greater confidence.”
According to Mastercard, small and medium-sized enterprises form the backbone of South Africa’s economy. The company estimates that SMEs account for 91 per cent of formal businesses, provide around 60 per cent of employment, and contribute roughly a third of gross domestic product. Yet many remain underbanked, with limited access to affordable credit, digital payment tools, and working capital.
Delayed payouts and high transaction costs are among the most common challenges. For township retailers, online resellers, and informal traders expanding into digital markets, liquidity constraints often determine whether a business survives seasonal downturns or supply shocks.
The prepaid card model seeks to bypass some of these bottlenecks. By linking sales revenues directly to a reloadable card, entrepreneurs can pay suppliers, purchase inventory, and manage operating costs without relying on overdrafts or short-term loans.
The initiative reflects broader shifts in Africa’s financial services sector, where digital platforms are increasingly integrating payments, credit, and data services into commercial ecosystems.
Africa’s fintech industry has expanded rapidly over the past decade, driven by mobile money adoption, rising smartphone use, and demand for low-cost digital finance. Makreo Research estimates that the sector grew at a compound annual rate of nearly 38 per cent between 2021 and 2025. Despite a global slowdown in venture capital funding, African fintech startups raised about $857 million in 2024, according to the Global Finance and Technology Network.
Much of this growth has been fuelled by partnerships between local platforms and global payment providers.
In Kenya, Safaricom’s M-Pesa collaborated with PayPal to enable cross-platform transfers and international payments. MTN’s MoMo service has partnered with Mastercard to issue virtual prepaid cards and expand cross-border transactions. These alliances have helped bridge gaps between domestic digital wallets and international payment systems.
The BoxCommerce-Mastercard partnership follows a similar logic: combining local market knowledge with global infrastructure to scale financial access.
Mete Guney, executive vice president for market development in Eastern Europe, the Middle East and Africa at Mastercard, said SMEs remain central to economic stability and job creation.
“Embedding secure payment solutions into platforms used by entrepreneurs helps them digitise with confidence,” he said. “It also strengthens local value chains and supports inclusive growth.”
However, analysts caution that digital payments alone cannot resolve deeper structural constraints facing small businesses.
Access to affordable credit remains limited, particularly for informal traders and micro-enterprises without formal financial records. Energy shortages, logistics costs, and weak infrastructure continue to affect operating margins. In addition, data privacy and platform dependency are emerging concerns as more commercial activity shifts online.
“There is a risk of SMEs becoming locked into proprietary ecosystems without sufficient bargaining power,” said one Johannesburg-based digital finance researcher. “The long-term sustainability of these models depends on transparency, interoperability, and fair pricing.”
From a sustainability perspective, digital finance is increasingly seen as part of broader resilience-building efforts. Faster payments can help businesses adapt to climate-related disruptions, manage supply volatility, and diversify markets. In flood-prone or drought-affected regions, liquidity can determine whether enterprises recover quickly or collapse.
BoxCommerce’s move also reflects a wider trend among African technology firms to reposition themselves as integrated service providers rather than single-function platforms. E-commerce, payments, logistics, and data analytics are converging into bundled systems aimed at retaining users and deepening revenue streams.
For South Africa, where unemployment remains high and informal enterprise is a critical source of livelihoods, the success of such initiatives carries broader economic implications.
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