PayPal has published research showing that 44% of online sales among surveyed Irish SMEs come from customers outside Ireland. More than half of respondents also said social commerce is more effective than traditional eCommerce platforms at driving sales.
The survey of 200 Irish SME owners who sell online points to growing reliance on overseas buyers, social media channels and artificial intelligence as smaller businesses seek new sources of revenue.
Among businesses already selling internationally, 80% expect overseas sales revenue to rise over the next 12 months. The findings suggest cross-border trade has become a significant part of the sales mix for many smaller online merchants in Ireland.
Businesses planning international expansion also cited wider reasons for entering new markets. Some 29% said overseas growth could help them attract global talent, while 25% pointed to the prospect of higher revenue or margins.
Social selling
Social media has become a core sales channel for many of the businesses surveyed. PayPal found that 78% use social media to generate sales, while 56% said social commerce is now more effective than traditional eCommerce platforms at driving demand.
Just over one in five respondents (21%) said social commerce would be the main driver of business growth over the next year. This marks a shift in how smaller firms approach online retail, with social platforms increasingly used not just for marketing but also as direct transaction channels.
Instagram Shopping and YouTube Shopping were the most-cited social commerce platforms, each used by 52% of respondents. Facebook Shops followed at 51%, while TikTok Shops were used by 34%.
The data suggests social selling is no longer limited to newer consumer brands or niche online traders. Instead, it is moving into the mainstream among Irish SMEs that already sell online.
AI uptake
The research also found widespread use of artificial intelligence tools. Nearly eight in 10 business owners surveyed (78%) said they already use AI in business or customer processes.
Respondents linked AI use to a range of operational goals. Driving innovation was cited by 62% as a key benefit, while 59% said it helps reduce finance administration, and 57% said it supports revenue growth.
For companies looking beyond Ireland, AI is also being used to lower barriers to expansion. One in four of those expanding internationally said that doing so has made it easier to enter and operate in new markets.
This suggests smaller businesses are using the technology not only to improve internal efficiency but also to manage some of the complexity of selling across borders, including administration, customer engagement and market entry.
Payments mix
Digital payment methods remain an important part of the sales environment for online SMEs. Mobile payment apps accounted for 19% of transactions on average, making them the largest share of sales by payment type in the survey.
Four in 10 business owners said they offer mobile payment apps to customers. Digital wallets were also widely used, with 36% of customers choosing them as a payment method, according to the findings.
The figures point to a consumer payments market in which convenience and speed remain important, particularly for businesses trading online and through social platforms, where checkout friction can affect conversion rates.
Confidence was relatively firm among those surveyed. A narrow majority, 51%, said SMEs were confident about their growth prospects in 2026 despite what the research described as a fast-moving and competitive trading environment.
Jonas Breding, General Manager of PayPal Northern Europe, commented on the findings.
"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 sales 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," he said.