MSMEs Embrace Digital Transactions: UPI Leads the Charge
A recent report reveals that nearly half of Micro, Small, and Medium Enterprises (MSMEs) prefer Unified Payments Interface (UPI) for transactions, with Aadhaar-enabled banking as a close second. Digital transactions have gained traction, especially among women entrepreneurs, leading to improved efficiency and increased income in rural India.
- Country:
- India
The latest survey reveals a significant shift towards digital payments among Micro, Small, and Medium Enterprises (MSMEs), with an overwhelming preference for using Unified Payments Interface (UPI) over traditional methods. The MSME Digital Index Report, published by PayNearby, indicates that 48% of MSMEs utilize UPI, while 39% opt for Aadhaar-enabled banking.
This trend is even more pronounced among women entrepreneurs, with 42% favoring Aadhaar banking due to secure, tech-driven options like fingerprint and face authentication. The survey, conducted among 10,000 MSMEs in sectors including kirana stores and travel agencies, highlights the growing reliance on digital tools for business operations.
As smartphones become indispensable in business settings, 71% of respondents use them primarily for work, with the number climbing to 84% among women. The digital wave has improved operational efficiency and income for over 73% of small enterprises in semi-urban and rural areas. Notably, 7% are exploring automation through AI tools, hinting at further technological integration.
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