How Small Businesses in India Are Going Digital
UPI and Aadhaar Banking Lead the Way
UPI is the Top Choice
Nearly half of India’s small businesses prefer UPI for transactions. A recent report by PayNearby highlights this trend. The MSME Digital Index Report shows that 48% of respondents favor UPI. Another 39% prefer Aadhaar-enabled banking.
Women Entrepreneurs Prefer Aadhaar Banking
Among women entrepreneurs, Aadhaar banking is even more popular. About 42% of women favor this secure system. It uses fingerprint or face recognition for transactions, making it both safe and convenient.
Who Was Surveyed?
The survey included 10,000 individuals and small businesses. These were from various sectors such as:
- Local grocery stores
- Mobile recharge shops
- Pharmacies
- Customer service points
- Travel agencies
Smartphones Are Essential
Smartphones have become crucial for business operations. About 71% of all respondents use them. Among women business owners, this number jumps to 84%.
Benefits of Going Digital
Going digital has brought many benefits:
- Improved efficiency for one-third of small businesses
- Increased income for over 73% of small businesses in semi-urban and rural areas
- Smoother day-to-day operations
Using AI-Powered Solutions
A small but growing number, 7%, have started using automated or AI-powered solutions. These include:
- Inventory management apps
- Automated billing systems
- Customer engagement platforms
Expert Insights
Anand Kumar Bajaj, Founder, MD & CEO of PayNearby, shared his thoughts. He said, “Small businesses are the backbone of India’s economy. The rapid adoption of digital tools shows that this sector is embracing modernization.”
About PayNearby
PayNearby is a DPIIT-certified company. It offers branchless banking and digital services across India, helping small businesses grow and thrive.
