69% of MSMEs prefer digital payments for business: Survey

The annual survey conducted on micro, small, and medium enterprises (MSMEs) exposed significant benefits for those integrating with e-commerce channels

October 10, 2023

Over 85% of the participating enterprises reported a surge in both total sales and profit margins

14% of integrated firms mentioned that they had expanded their workforce

Challenges faced by MSMEs include market access, customer retention, and effective product marketing

MSMEs underscored the importance of streamlined coordination between central and state governments

Digital wallets and mobile payments are the primary mode of conducting business transactions for about 69% of the surveyed micro, small, and medium enterprises (MSMEs), according to a study conducted by The India Council for Research on International Economic Relations (ICRIER).

The annual survey conducted on MSMEs claimed that those who had  with E-commerce channels enjoyed several benefits. Over 85% of the participating enterprises reported a surge in both total sales and profit margins, with many witnessing growth of up to 30%. About  14% of integrated firms mentioned that they had expanded their workforce.

ICRIER emphasised that despite the positive impact of E-commerce integration, the volume of sales through online platforms still represents a relatively smaller portion of overall sales compared to traditional methods. Consequently, there is substantial potential for MSMEs to increase their share of online sales within their total revenue.

Among the challenges faced by the majority of MSMEs surveyed, obstacles related to market access, customer retention, and effective product marketing ranked prominently, as detailed in the study.

The MSMEs surveyed underlined the importance of streamlined coordination between central and state governments and advocated for a comprehensive MSME policy that consolidates policy incentives and programs into one accessible source. They also stressed the need for governments at all levels to raise awareness about the various incentives and programs available to encourage higher participation.

Source: Economic Times

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