New research from PayPal reveals that among SMEs surveyed in Ireland who sell online, 44% of sales come from outside Ireland. The findings also point to strong AI adoption, with one in four (25%) of those expanding internationally saying AI tools have made it easier to enter and operate in new markets.
This survey commissioned by PayPal among SME owners surveyed in Ireland whose businesses sell online, finds that the majority (51%) are confident about their growth prospects for 2026. Central to this confidence is the rise of social commerce, with 78% reporting that they use social media channels for sales. More than half (56%) of business owners surveyed now feel that social media commerce is more effective than traditional ecommerce platforms for driving sales, while just over one in five (21%) expect it to be the main driver of business growth in the next 12 months.
The study reveals that Instagram shopping (52%), YouTube shopping (52%), Facebook shops (51%) and TikTok shops (34%) are the leading social platforms for social commerce sales among Irish SMEs surveyed.
AI adoption
According to the research, Irish SMEs are significant adopters of AI technology, with almost 8 in 10 (78%) business owners surveyed currently using AI in either business or customer processes. Driving innovation (62%), reducing finance administration (59%) and driving revenue growth (57%) are cited as the greatest benefits to business operations.
Overseas markets
Cross-border trade is an important revenue stream for Irish SMEs. Business owners expanding internationally believe it will help them to attract global talent (29%) as well as secure higher revenue/margin opportunities (25%). Among those already selling internationally, 80% expect overseas sales increase in the next 12 months.
Payment methods
Digital payments continue to support Irish SMEs, with mobile payment apps generating the largest share of their sales, accounting for almost one-fifth (19%) of transactions on average. Four in ten Irish business owners offer mobile payment apps to customers, while digital wallets are also a popular form of payment among customers (36%).
Jonas Breding, General Manager, PayPal Northern Europe comments: “Irish SME owners are operating in fast-moving and competitive environments. From AI adoption and the rise of social commerce to the introduction of new payment methods, business owners are continuously having to evolve to meet changing consumer expectations. The scale of this change also brings real opportunities for Irish businesses. On average, SMEs who sell online are generating 44% of their sale cross-border. By leveraging digital channels, social commerce and ecommerce technology, we can see that Irish SMEs are well positioned to reach customers across the world. The businesses that will thrive are those that continue to invest in the right tools, removing friction from the customer journey and fully embracing international sales opportunities.”