High costs are a barrier for 34% of small and medium-sized South African merchants when it comes to adopting technology, according to a MasterCard study.

The electronic payment company's 'Merchant Scope' study has examined how small and mid-sized merchants from the retail, services, restaurant and hospitality industries use and adopt technology.

Apart from focusing on technology costs, the study has also revealed that 23% of the merchants listed data security as a second major concern, while 21% said a lack of knowhow would reduce their likelihood of adopting technology.

"When the technology that can help a small to mid-sized merchant grow is too expensive, or if data security concerns outweigh the benefits of new technology adoption, it becomes difficult for them to plan for growth or compete against larger merchants," explained Mark Hearne, head of business development at MasterCard, South Africa.

Further findings in the study reveal that of the four merchant categories, hospitality merchants had the highest e-commerce presence at 45%.

Retailers had the second highest e-commerce presence at 20%. Meanwhile, just 9% of service merchants and 6% of restaurants have an e-commerce presence, the study revealed.

Hearne adds, "As tech-savvy consumers take advantage of emerging technologies like mobile devices or computers to access the internet to research their intended purchase, find great deals, or more frequently to purchase their products, businesses of all sizes should create an 'always on,' omni-channel presence to attract new and repeat customers."