Daijiworld Media Network - New Delhi

New Delhi, Jul 7: Nearly half of India’s micro, small, and medium enterprises (MSMEs) now prefer Unified Payments Interface (UPI) as their primary mode of transaction to grow their business, reveals the latest MSME Digital Index Report by PayNearby. The survey highlights a significant shift towards digitalisation among small businesses, with 48% choosing UPI and 39% favouring Aadhaar-enabled banking services.

Among women entrepreneurs, Aadhaar-based banking has seen even greater traction, with 42% preferring fingerprint and facial authentication for secure transactions.

The report, based on a nationwide survey of 10,000 individuals and MSMEs operating in kirana shops, mobile recharge points, medical stores, customer service centres, and travel agencies, indicates a strong digital shift across semi-urban and rural India.

Smartphones have become the primary business tool for 71% of users, rising to 84% among women-led enterprises.

Digital adoption has led to noticeable improvements in business performance, with one-third of respondents reporting better operational efficiency. Over 73% of small businesses have experienced either increased income or enhanced efficiency through digital tools.

Interestingly, 7% of MSMEs are now experimenting with AI-powered solutions like inventory apps, automated billing, and customer engagement platforms.

Commenting on the findings, Anand Kumar Bajaj, Founder and CEO of PayNearby, said, “The MSME sector is the backbone of Bharat's economy. The rapid adoption of smartphones, UPI, Aadhaar-enabled banking, and AI-driven tools clearly shows their eagerness to embrace modernisation.”

PayNearby is a DPIIT-certified digital and branchless banking network aimed at empowering India’s last-mile businesses.