BANGALORE: An estimated 9.2 million MSMEs registered under GST could be a potential market for advanced offerings from the Fintech stable, given that 47% of these MSMEs have adopted digital tools for business processes, payments, and online sales in India, revealed a pan India survey by MSME tech startup Instamojo.
As per the study by the Bengaluru-based digital payments and services startup -- of 400 MSME entrepreneurs surveyed, 49% of Indian MSMEs still prefer traditional lending channels over digital.
A vast majority of respondents (75%) believe that technology helps solve many of the challenges. “They leverage online information, logistics and email apps, social media, task management solutions and also train employees on technology. A dearth of skilled labour, time spent solving the challenges and a lack of understanding of how technology might help, keeps the rest from trying,” it said.
Notably, transactional convenience and monetary incentives to customers create value for about two-thirds of the MSMEs surveyed. Another 20% see value being created from customer preference for digital payment technology and data security and synchronization, the report added.
Illustrating the increasing popularity of digital payment technology in recent times, the report, by digital payment solution provider further highlights that currently digital payment technology is marked by a high level of MSME user satisfaction. “Nearly three- fourths of the respondents reported to be “very satisfied” or “extremely satisfied” with their experience of digital payment products,” it noted.
The report also highlights that although 75% of the MSMEs believe that technology helps solve major challenges pertaining to operations, the other 25% of MSMEs, however, attribute this to other factors such as unavailability of skilled labour and lack of understanding of technology.