Nearly half of MSMEs surveyed prefer UPI as a mode of transaction to grow their business, followed by Aadhaar-enabled banking, according to a report.
The MSME Digital Index Report by PayNearby found that digital payments continue to gain strong acceptance among MSMEs, with UPI emerging as the most preferred mode of transaction at 48%, followed by Aadhaar-enabled banking at 39%.
Among women entrepreneurs, Aadhaar banking saw even higher preference at 42%, reflecting increasing trust in secure, tech-enabled services such as fingerprint and face authentication, the report said.
.thumbnailWrapper{
width:6.62rem !important;
}
.alsoReadTitleImage{
min-width: 81px !important;
min-height: 81px !important;
}
.alsoReadMainTitleText{
font-size: 14px !important;
line-height: 20px !important;
}
.alsoReadHeadText{
font-size: 24px !important;
line-height: 20px !important;
}
}
The report is based on a nationwide survey conducted among 10,000 individuals and MSMEs in retail-focused segments such as kirana stores, mobile recharge outlets, medical shops, customer service points (CSPs), and travel agencies.
It found that smartphones have emerged as the primary business device at 71% while among women, it is even higher at 84%.
On benefits from digital adoption, a third of respondents cited improved operational efficiency, while over 73% of small businesses across semi-urban and rural India have seen increased income or improved operational efficiency as a result of adopting digital tools.
“A small but notable 7% of respondents have begun exploring automated or AI-powered tools, including inventory apps, automated billing systems, and customer engagement platforms, mostly through third-party solutions,” the report said.
Anand Kumar Bajaj, Founder, MD and CEO, PayNearby, said, “The MSME sector is the backbone of Bharat’s economy, and the rapid adoption of digital tools such as smartphones, UPI, Aadhaar-enabled banking, and emerging AI workflows is proof that this segment is embracing modernisation.”
PayNearby, a DPIIT-certified company, is a branchless banking and digital network.
Edited by Kanishk Singh
