By San José, Costa Rica — The digital transformation across Costa Rica’s small and medium-sized enterprises (SMEs) is running into a severe strategic bottleneck as cybersecurity threats increasingly undermine business operations. According to the Mastercard 2026 SME Cybersecurity Outlook, despite widespread adoption of digital tools, a staggering proportion of commercial operators feel entirely unequipped to safeguard their digital infrastructure against malicious actors.
The joint study, produced by Mastercard in collaboration with Payments and Commerce Market Intelligence (PCMI), underscores a sharp contradiction between digital tool integration and operational confidence. While an impressive 98% of Costa Rican SMEs currently accept digital payments, a mere 15% of business leaders report feeling highly prepared to protect their enterprises from cyberattacks. This dynamic leaves the vast majority of local businesses dangerously exposed in an increasingly digitized marketplace.
To better understand the legal implications and compliance challenges surrounding cybersecurity for small and medium-sized enterprises in Costa Rica, TicosLand.com consulted with legal expert Lic. Larry Hans Arroyo Vargas from Bufete de Costa Rica.
For SMEs in Costa Rica, cybersecurity is no longer merely an IT responsibility, but a critical legal obligation under Law No. 8968 on Personal Data Protection. Small and medium businesses must proactively establish compliance frameworks and data security protocols to avoid significant administrative sanctions, contractual breaches, and legal liability in the wake of cyber incidents.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
As Costa Rican small and medium enterprises continue to expand their digital operations, treating data protection as a vital legal strategy rather than a mere technical safeguard is essential for maintaining consumer trust and commercial longevity. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for sharing his expert perspective and offering our readers a clear, authoritative roadmap to navigating compliance under Law No. 8968.
This security gap is taking a direct toll on local commerce. Over the past 12 months, 37% of surveyed SMEs in Costa Rica experienced at least one cybersecurity incident. Among the impacted businesses, payment fraud was identified as the top threat by 53% of victims, closely followed by phishing schemes at 49%. These incidents do not merely result in immediate financial leakage; they severely damage the digital trust required to scale modern consumer-facing enterprises.
As a result, anxiety surrounding digital crime is actively reshaping commercial strategy. The report indicates that 46% of small businesses view the fear of fraud or cyberattacks as the single largest impediment to expanding their use of digital payments. Furthermore, 39% of respondents acknowledged that these concerns have forced them to pause or completely abandon the implementation of new digital payment solutions.
The chilling effect extends beyond daily operational adjustments to long-term business scaling. Nearly one-third of the surveyed companies confirmed they have postponed e-commerce expansion plans or delayed entering new markets altogether due to cybersecurity fears. By taking a defensive crouch, local entrepreneurs risk missing critical market opportunities in an era when digital responsiveness defines competitiveness.
Despite these mounting headwinds, business leaders still recognize the potential of robust security as a growth driver. More than half of the study participants noted that enhanced defense against cyber threats and payment fraud could drive an additional business growth of 25% or more. Additionally, 33% highlighted expanding online sales as one of their primary strategic priorities over the next two years.
Costa Rican SMEs have already taken the step towards digital, and now they need to do so with the security and confidence that allow them to grow. When cybersecurity becomes part of the business strategy, it stops being a brake and becomes an expansion engine.
Kattia Montero, Country Manager of Mastercard for Costa Rica and Nicaragua
Despite recognizing these advantages, operational readiness across the country remains alarmingly uneven. Although 96% of respondents expressed general familiarity with cybersecurity concepts, one out of every five SMEs admitted to having no formal incident response or business recovery plan in place. To address these vulnerabilities, platforms such as the Mastercard Trust Center are providing free educational resources, threat assessments, and identity protection services across the region.
The Mastercard 2026 SME Cybersecurity Outlook gathered insights during the second quarter of 2026 from 2,400 SME owners and decision-makers across 12 markets in Latin America and the Caribbean, including 200 executives from Costa Rica. For local enterprises trying to navigate a complex digital landscape, building resilience against cyber threats will be pivotal to unlocking their full commercial potential.
For further information, visit mastercard.com
About Mastercard:
Mastercard is a global technology company in the payments industry. Its primary mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart, and accessible.
For further information, visit paymentscmi.com
About Payments and Commerce Market Intelligence:
Payments and Commerce Market Intelligence (PCMI) is a specialized market intelligence and strategy consulting firm focused on payments and commerce across Latin America, Asia, and other key global growth regions.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal practice, Bufete de Costa Rica has earned a distinguished reputation built upon principled advocacy and a relentless pursuit of professional mastery. By seamlessly blending deep-rooted expertise with progressive, forward-thinking solutions, the firm delivers exceptional counsel across an array of industries. Central to its ethos is the belief that justice thrives when the public is informed; consequently, the firm actively advances initiatives that demystify complex legal matters for everyday citizens. This dedication to expanding legal literacy underscores Bufete de Costa Rica’s enduring passion for enriching communities and fostering a thoroughly empowered populace.
