{"id":655913,"date":"2026-06-24T14:42:38","date_gmt":"2026-06-24T14:42:38","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/655913\/"},"modified":"2026-06-24T14:42:38","modified_gmt":"2026-06-24T14:42:38","slug":"rise-of-digital-payments-in-indian-msmes-80-report-growth-etbfsi","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/655913\/","title":{"rendered":"Rise of Digital Payments in Indian MSMEs: 80% Report Growth, ETBFSI"},"content":{"rendered":"

~Yashi Bhatia
Digital adoption among semi-urban and rural MSMEs<\/a> continues to strengthen, with 80% of retailers reporting an increase in digital payment usage at their stores, even as cash remains the single largest customer transaction mode, according to a latest report by PayNearby<\/a>.<\/p>\n

Based on a survey of over 10,000 retailers and MSMEs across India, the report found that Aadhaar-enabled banking<\/a> and UPI together account for 61% of the dominant transaction mix, highlighting the growing role of digital payments<\/a> in everyday commerce. At the same time, 37% of respondents said cash remains the primary mode of customer transactions.
MSMEs move from digital adoption to digital confidence<\/p>\n

The report noted a shift from digital adoption to digital confidence among small businesses. Around 87% of respondents said they feel more confident using digital tools than they did a year ago, while 82% reported being confident in using digital tools for day-to-day business operations.<\/p>\n

Digital tools are also translating into business gains, with 41% of respondents reporting higher income and 37% indicating increased customer footfall. Additionally, 92% said digital tools have helped them make better business decisions or support family needs.<\/p>\n

Assisted digital access remains critical<\/p>\n

Despite increasing digital adoption, assisted access continues to play an important role. About 81% of retailers said they regularly help customers use digital services, underscoring their role as local facilitators of financial and digital inclusion. Meanwhile, 43% said customer self-service strengthens trust in their businesses, while 17% noted that customers still seek guidance, the report said.
AI awareness rises at the last mile<\/p>\n

The survey found growing awareness and interest in artificial intelligence among small businesses. Around 90% of respondents said they had heard of AI, while 71% reported using, experimenting with or expressing interest in AI tools and automation. However, 26% remained unsure about which AI features would be most relevant for their businesses.<\/p>\n

Digital records improve access to formal credit<\/p>\n

The report highlighted the role of digital transaction records in expanding credit access. Nearly 47% of respondents said digital records had helped them obtain formal credit, while another 22% planned to use transaction histories for future borrowing. Additionally, 40% expressed interest in offering credit services through their businesses.<\/p>\n

Fraud concerns and training gaps persist
While digital adoption continues to rise, concerns around fraud and capability building remain. Around 33% of respondents cited fear of fraud as the biggest barrier to deeper digital adoption, followed by lack of training (30%) and poor internet connectivity (23%). Short video-based learning emerged as the preferred training format for 49% of respondents, the report stated.<\/p>\n

Women entrepreneurs deepen digital engagement<\/p>\n

The report also noted that among women entrepreneurs, 79% reported confidence in using digital tools, while 75% said they regularly assist customers with digital services. About 61% expressed interest in offering government services, and 72% showed interest in AI and automation tools.\n <\/p>\n

Published On Jun 23, 2026 at 03:42 PM IST<\/p>\n

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