 "Unified Payments Interface, UPI")
Nearly 50 per cent of MSMEs prefer UPI for business transactions, followed by Aadhaar-enabled banking, according to a new report.
The MSME Digital Index Report by PayNearby shows that digital payments are seeing growing adoption among MSMEs. UPI was the most preferred method at 48 per cent, while Aadhaar-enabled banking followed at 39 per cent.
Among women-led businesses, Aadhaar-based transactions saw even higher use at 42 per cent, highlighting increased trust in secure technologies such as fingerprint and facial recognition, the report said.
The findings are based on a national survey of 10,000 individuals and MSMEs operating in sectors such as kirana stores, mobile recharge shops, medical stores, customer service points (CSPs) and travel agencies.
Smartphones have become the main business tool for 71 per cent of users. Usage was higher among women entrepreneurs, at 84 per cent.
Also Read
 "Unified Payments Interface, UPI")
 "Anam Mirza")
 "bank fraud")
 "UPI")
When asked about the benefits of going digital, one in three respondents reported better operational efficiency. More than 73 per cent of small businesses in semi-urban and rural areas said they had either higher earnings or smoother operations after adopting digital tools.
"A small but notable 7 per cent 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 of 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 is a DPIIT-certified company offering branchless banking and digital financial services.
 "Piyush Goyal, Piyush")
 "FMCG, SHOPS")
 "Fish, Fish market, Sea food")
 "FMCG")
 "Fintech companies are tapping into traditional forms of banking products such as fixed deposits (FDs) as they expand their financial services bouquet.")
