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 in