73% MSMEs Grow via Digital Shift Led by UPI, Smartphones: Survey
The digital landscape has been revolutionizing the way businesses operate, and nowhere is this more evident than in the growth of Micro, Small, and Medium Enterprises (MSMEs). According to a recent survey by PayNearby, a leading fintech company, a staggering 73% of MSMEs have reported growth through digital adoption, with Unified Payments Interface (UPI) and smartphones leading the charge.
The survey, which is part of PayNearby’s 2025 MSME Digital Index, highlights the significant impact of digital technologies on the growth and success of MSMEs. These small businesses, which are the backbone of India’s economy, are increasingly leveraging digital platforms to reach new customers, streamline operations, and access new markets.
One of the key findings of the survey is the significant role played by UPI in driving digital adoption among MSMEs. UPI, which is a real-time payment system developed by the National Payments Corporation of India (NPCI), has made it easier for businesses to receive and send payments seamlessly. The survey found that 61% of MSMEs use UPI for transactions, making it one of the most popular digital payment methods among small businesses.
Smartphones, too, have played a crucial role in driving digital adoption among MSMEs. The survey found that 83% of MSMEs use smartphones to manage their businesses, with 84% of women entrepreneurs using them. This is a significant increase from previous years, and it reflects the growing importance of mobile technology in the digital landscape.
The survey also highlighted the importance of digital literacy and training in driving digital adoption among MSMEs. The survey found that 75% of MSMEs have received digital training, with 61% of them reporting that it has helped them grow their business. This is a testament to the growing recognition of the importance of digital skills in the modern business landscape.
Another key finding of the survey is the significant role played by women entrepreneurs in driving digital adoption among MSMEs. The survey found that 84% of women entrepreneurs use smartphones to manage their businesses, and 79% of them reported digital success. This is a significant increase from previous years, and it reflects the growing importance of women entrepreneurs in the digital economy.
The survey also highlighted the importance of regional language interfaces in driving digital adoption among MSMEs. The survey found that 71% of MSMEs prefer to use regional language interfaces, with 64% of them reporting that it has made it easier for them to use digital platforms. This is a significant finding, as it highlights the importance of language and cultural factors in driving digital adoption among small businesses.
AI tools also gained traction among MSMEs, with 55% of them using AI-powered tools to manage their businesses. This is a significant increase from previous years, and it reflects the growing importance of AI in the digital landscape.
The survey also highlighted the importance of Aadhaar banking in driving digital adoption among MSMEs. The survey found that 54% of MSMEs use Aadhaar banking, with 51% of them reporting that it has made it easier for them to access financial services. This is a significant finding, as it highlights the importance of financial inclusion in driving digital adoption among small businesses.
In conclusion, the PayNearby survey highlights the significant impact of digital technologies on the growth and success of MSMEs. The survey found that 73% of MSMEs have reported growth through digital adoption, with UPI and smartphones leading the charge. The survey also highlighted the importance of digital literacy and training, women entrepreneurs, regional language interfaces, AI tools, and Aadhaar banking in driving digital adoption among MSMEs.
As the digital landscape continues to evolve, it is essential for MSMEs to stay ahead of the curve and adapt to the changing technologies. With the right training and support, MSMEs can leverage digital technologies to drive growth, increase efficiency, and stay competitive in the market.
Source: https://startuptalky.com/news/msme-growth-digital-adoption-upi-smartphones/
