Acceptance of electronic payments: increase sales of MSME

While the micro, small and medium enterprise (MSME) sector is the backbone of the Indian economy, it continues to maintain and operate offline, despite the nationwide increase in digitization. According to a joint study by KPMG and Google, 68% of MSME India continued their traditional approach by working entirely offline.

Even those with access to digital infrastructure are not yet fully benefiting. The report adds that only two percent of India’s more than 51 million small and medium-sized businesses are actively involved in digital activities, including online buying and selling.

This situation must be interrupted by higher aspirations of the Indian economy.

Dematerialization boom

Keeping up with the waves of digitalization opens huge opportunities for MSME India. . Electronic payments allow them to move across borders and sell in geographic areas that would otherwise be out of their reach.

In addition, social sales have made the industry vulnerable. In one of Zinnova’s exclusive reports shared with the Times of India, nearly two million housewives started working at home and sold between $ 8 and $ 9 billion selling through Facebook and WhatsApp. . Depending on the prevalence of social selling, leading payment solution providers allow MSME to sell via Facebook, Twitter, Instagram or WhatsApp.

While scanning is beneficial to the overall health of the company, reports shared by KPMG in India and Google continue to support the concept with specific data. MSMEs with a digital presence have grown twice as fast as their offline counterparts. While offline businesses have limited geographical limitations in their operations, 51% of digital businesses can move and sell to other cities. Of course, by improving the unit’s economy, the presence of MSME has been able to grow rapidly without increasing costs. Because digital analogs are similar, digital workers can use their workforce five times more than advertising against offline businesses. As one of the fastest growing emerging economies in the world, the country aims to increase GDP growth by 8%, while creating 50 million jobs. additional

With the current level of urbanization, such a feat can not be achieved without the arrival of MSMEs and the adoption of digital payment.

As noted in the studies above, the adoption of digital payment will allow the growth and expansion of MSMEs in India.

Electronic payments accepted after cancellation

Decisions of part of the Government of India Prohibit previous foreign currency notes Rs 500 and Rs 1000 had a huge impact on MSMEs, especially those that were completely disconnected until then.

While the availability of liquidity and, as a result, the dry business funds posted have been rated, small and medium-sized businesses have no choice but to start accepting. electronic transfer of funds and payment by check. Research conducted by Cirsil during the same demolition revealed that up to 41% of MSMEs report a change in electronic payment or registration by their client department. In view, despite the shift in the Indian economy, demonetization pushed India’s MSMEs to knock on the door, and access to electronic payment processing Other digital services are limited to medium-sized businesses, and even small businesses and micro-businesses need to make the change.

Although monetization is a powerful motivator for the e-payment industry, it will also contribute to the rapid development of these companies by providing them with retention. Easier records, expanded markets to other geographic areas, and faster payment management.

Accepting electronic payments is a necessity

Mentioning access to the potential of the market or new opportunities opened up for the development and expansion of the company, the acceptance of electronic payments and participation in digitization is very important for India’s MSMEs. . Evidence is that the campaign, money wave here to stay in India. In addition to making money, we also witnessed the increasing accessibility of smart phones and the comprehensive improvement of digital infrastructure. As a result of these institutional changes, India will have 465 million Internet users. In addition, budget changes announced on the 2017 budget will allow the Union to allow the wave of digitizing the last kilometer of the rural landscape. In support of the digital initiative, the government has committed 10,000 B Crows to the Bharat Net project. The same thing will ensure WiFi hotspots in more than 150,000 Gram Panchayats.

Support for MSMEs

While it may be overwhelming to allow micro, small and medium companies of India to move online, they can access some solutions to automate and speed up the same process. Some payment solution providers not only help MSMEs accept online payments, but also help facilitate integration, to create online stores and ensure the level of darkness.

Take advantage of network security for transactions taking place in a secure environment. Whether selling or accepting society At offshore payments, payment solution providers have the tools of MSMEs that need to go digital today.

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