PayPal Announces "PayPal Survey on E-commerce Utilization by Small and Medium-sized Enterprises 2026"

PayPal (PayPal Pte. Ltd., Headquarters: Singapore, Tokyo Branch General Manager: Michihiko Yoden, hereinafter "PayPal"), a global leader in commerce platforms, has announced the results of the "PayPal Survey on E-commerce Utilization by Small and Medium-sized Enterprises 2026".

This survey was conducted online in April 2026, targeting decision-makers (n=310 individuals/companies) at the manager level or above in small and medium-sized enterprises (SMEs) (employees: 4-299) nationwide that are engaged in e-commerce (hereinafter, EC). The objective was to clarify the current situation and future outlook of SMEs, as well as the realities of EC.

Amidst significant impacts on SME management from changes in the external environment, such as a weak yen, rising prices, labor shortages, and global instability, the survey revealed that many companies are pursuing "adaptation" rather than "contraction" through measures like price revisions, strengthened hiring, and new customer acquisition. On the other hand, structural challenges such as "recognizing the necessity but not being able to fully execute" were highlighted in growth areas like EC operations, cross-border EC expansion, and AI utilization. Furthermore, in EC payments, over half of the companies experienced some form of payment trouble in the past year, while a certain number of companies felt an increase in sales and purchase rates by expanding payment methods, indicating that the development of a secure and safe payment infrastructure affects customer experience and sales opportunities.

SMEs Adapting to Changes in the External Environment, Moving Towards "Adaptation" Rather Than "Contraction"

The survey on the actual situation of SMEs engaged in EC confirmed once again that factors such as rising prices, a weak yen, and labor shortages are significantly impacting business operations. Specifically, 49.0% of companies responded that they are affected by rising prices. Additionally, 51.3% of companies are affected by increased procurement prices and costs due to the weak yen, and 34.5% are affected by increased procurement costs due to the US tariff increase. Among internal factors affected in the past year, "labor shortage" was the most cited at 38.4%.

In response to these environmental changes, many companies are undertaking initiatives for adaptation. In fact, half (50.3%) of the companies have implemented "sales price increases," and many are also engaged in future-oriented measures such as "new customer acquisition" (41.0%), "wage increases" (31.6%), and "strengthened hiring" (31.3%).

EC is Optimized Amidst Diverse Options, While Challenges for Growth Coexist

Regarding EC operational methods, 29.4% of companies operate on their own websites, while 46.1% operate on EC malls.

While operating on their own websites offers the advantage of high flexibility, challenges such as "costs are too high" (31.3%), "lack of in-house personnel for operations" (28.9%), and "concerns about customer acquisition" (28.1%) were raised. These challenges are likely influenced by the business environment surrounding SMEs, including rising prices, increased costs, and labor shortages. It is suggested that to expand EC operations using their own websites, it is important to develop operational structures and strengthen customer acquisition strategies alongside addressing these management challenges. The average proportion of EC sales to total sales is 26.7%, with one-quarter of all companies having EC sales accounting for over 50% of their total sales. To further grow EC sales in the future, optimizing operations based on the characteristics of each channel and strengthening customer acquisition and touchpoints are considered important.

Regarding "cross-border EC," which involves selling products and services across national borders within EC, 18.4% of companies are currently implementing it, and 28.1% plan to do so within the next year, indicating that approximately 50% of all companies have a positive stance.

Furthermore, for companies engaged in cross-border EC, overseas sales account for about 20% of their total EC sales. In undertaking cross-border EC initiatives, various measures are being pursued to address overseas markets, such as "AI utilization" (38.6%), "implementation of global payment systems" (31.6%), and "addressing language issues" (29.8%) (※1).

(※1) Based on companies already engaged in cross-border EC.

Over Half Experience Payment Troubles; Payments Shift from "Function" to "Trusted Infrastructure"

This survey revealed that over half of SMEs engaged in EC (55.2%) have experienced some form of online payment trouble in the past year. The main types of trouble included "errors or double billing during payment," "cancellations after payment," "returns and refunds," "increased payment costs," and "fraudulent use." While EC usage is expanding, operational burdens and risk management in the payment domain remain significant challenges for SMEs.

Moreover, "availability of secure and reliable payment methods" (34.5%) was most frequently cited as an important factor for customers to purchase with confidence on EC sites. This indicates that "the ability to pay with peace of mind" is a crucial decision-making criterion for online purchases, alongside price and delivery. Companies also prioritize "security and safety features" in EC payments, with "acquisition of security certification" (26.5%), "clear fee structure" (25.5%), and "personal information protection" (21.3%) being highly valued.

Payment methods introduced on EC sites are primarily traditional ones such as "credit cards" (66.1%) and "bank transfers" (52.6%). Additionally, about 40% of companies do not use payment service providers that can "consolidate" the contracting, introduction, and sales management of multiple payment methods. Amidst this, approximately 30% of companies that expanded their payment methods experienced "an increase in sales and purchase rates" (※2), suggesting that the development of the payment environment can also impact sales opportunities.

(※2) Based on companies that expanded their payment methods.

These results indicate that payment systems are not merely payment functions but play a role as "trusted infrastructure" that builds trust with customers and supports the maximization of purchasing opportunities. In particular, supporting diverse payment methods and establishing a secure and safe payment environment are considered important for both increased sales and improved customer experience.

AI Utilization Polarizing; Challenges Lie in Personalization and Internal Processes

With labor shortages and increasing operational burdens becoming management issues, many SMEs are beginning to utilize AI for operational efficiency. This survey found that approximately 70% of companies have already introduced AI, with ChatGPT (47.6%), Gemini (33.5%), and Copilot (22.2%) being the top utilized tools. AI is also being used primarily for daily tasks involving text, such as drafting emails, proposals, and meeting minutes.

On the other hand, 87.1% of companies that have introduced AI also reported experiencing some form of challenge in its introduction and utilization. Specifically, "operations are becoming personalized" (20.8%), "business process reorganization is necessary before AI introduction" (19.8%), and "cost burden" (18.8%) were cited as top issues, suggesting that not only the introduction of tools but also the review of business processes and organizational structures are required.

In contrast, for companies that have not introduced AI, the main reasons cited were "lack of time for consideration due to labor shortage" (16.7%) and "cost burden" (14.8%). Furthermore, 45.4% of companies responded "no particular barriers," indicating that a certain number of companies do not have a sufficient understanding of the necessity of AI introduction or a clear image of its practical application.

Under these circumstances, while 48.7% of companies plan to start or further expand their AI utilization, 24.8% plan to reduce or not introduce it, showing a trend of polarization between companies actively using AI and those where introduction and utilization are not progressing.

Measures to Take for Future Growth

This survey confirmed that while many SMEs are pursuing growth initiatives even amidst a challenging business environment, execution challenges remain in areas such as EC operations and AI utilization. A particularly notable finding was that over half of companies engaged in EC experienced payment troubles, yet "secure and reliable payment methods" were cited as the most important factor for customers to purchase with confidence. The survey results suggest that payments are not just a means of payment but have become a crucial management foundation that supports customer trust and influences sales opportunities.

To capture future growth opportunities, it is important for SMEs to gradually adopt digital tools in a way that suits their own companies. For example, in EC, expanding sales channels while reducing operational burden, along with establishing a payment environment where customers can purchase with peace of mind, can lead to increased sales opportunities. For overseas sales as well, it is important to tackle initiatives such as AI utilization and the introduction of global payment systems in a phased manner according to the company's resources and business scale.

Regarding this situation, Michihiko Yoden, General Manager of PayPal's Japan business, stated:

"SMEs continue to devise ways to move forward, such as price revisions and utilizing new sales channels, even in a challenging environment. Moving forward, it will be important to advance digital adoption in a way that suits each company, even with limited resources, and to expand touchpoints with new customers. Especially in EC and cross-border sales, as the importance of expanding sales channels increases, establishing a secure and safe payment environment that supports customer trust is also indispensable. PayPal, in addition to payment services that support smooth transactions with domestic and international customers, supports the creation of an environment where businesses can confidently challenge new markets and customer segments through advanced fraud prevention technology and buyer/seller protection programs. We aim to continue contributing to the realization of a safer and easier-to-use commerce experience as a partner supporting the growth of Japanese SMEs."

PayPal's Initiatives for Secure Payments

This survey revealed that over half of companies experienced online payment troubles in the payment domain, and "secure and reliable payment methods" were most valued as a factor for customers to purchase with confidence. As EC and cross-border sales expand, establishing a payment environment where both customers and businesses can transact with peace of mind, in addition to sales channel and customer acquisition strategies, is considered an important management issue.

As a pioneer in online payments, PayPal has independently established industry-leading fraud prevention models since its inception. All transactions are monitored 24 hours a day, 365 days a year, and mechanisms are in place to ensure transaction safety, such as restricting accounts when suspicious activity is detected, to minimize user losses. Furthermore, it complies with PCI DSS, an international industry standard for securely handling credit card information, and supports secure and rapid login without the need to remember passwords by supporting passkeys for account login.

Additionally, PayPal offers a "Buyer Protection" program to users, which guarantees the purchase amount under applicable conditions if the ordered item is not received or arrives significantly different from its description. On the seller side, it provides "Seller Protection," which protects eligible transactions under certain conditions in cases of disputes such as chargebacks or payment cancellations due to fraudulent activity, thereby mitigating the economic impact on the business. These programs support the realization of a transaction environment where both businesses and consumers can use with confidence.