Posted on December 9, 2022

Author: Tether Admin



MSME Digitalization- An Engine for Sustainability!

Are we embracing a digital and cashless economy?

Is it the end for cash usage and coins?

The answer is not a big deal though the answer is already a big YES!

Yes, because the new wave of digitalisation has transitioned from several facets of our life in a developing country like India. Modernisation in the payments sector is booming, helping the nation switch from a cash-centric economy to a “‘Digitally Sceptered Economy”. ’ Since India is showing a massive renovation towards digital payments, we are shedding light on the importance of digital payments systems in MSMEs by conducting an event titled named “‘Transformation in digital payments for MSMEs and its future”’, presented by Fintech Expert Ketan Patel, CEO at Mswipe Technologies Pvt. Ltd.


We have summed up the key takeaways on the current fintech innovation for MSME and how MSME is leveraging the digital payments that the fintech solutions are offering?

Dig into Digital!

India is going cashless and contactless! There is no doubt that payment systems have transformed the way business transactions are being conducted in the Indian market. Marching towards digital India, the use of currency has been renovated into paperless transactions. The paperless transaction has ensured the citizens of the country access to a robust digital ecosystem. There is no surprise that the emergence of new-age technologies has not only revolutionised people’s daily lives but also emended how business transactions are conducted. With the resurgence of digital payments, UPI (unified payments interface) is becoming pervasive, and a flaring number of customers choose digital banking access since they have undergone a metamorphosis.


Pandemic effect on digitalization

Even during the pandemic, when the whole nation was in a do-or-die situation, COVID 19 drove the global surge in digital payments usage. The tide drastically escalated the wide adoption of digital payments among customers and retailers after demonetization. The pandemic wave of digitalization set the ground for a contactless society, leading to nearly 25.5 billion digital transactions in 2020t. Its volume has been climbing yearly, reaching 7422 crore transactions in FY 2021-2022.


Transforming MSME into paperless:

Do you know that digital payments have changed the game for MSMEs also? Are you curious to know about the metamorphosis in MSME?
Here is the answer
The “’ Paytech” ’ revolution is making it possible for digital payments to report payment speed, efficiency, risk protection, and user experience to deliver the extensive ability for MSMEs to optimize their business operations. Days are gone when MSME business owners keep track of payments made during everyday operations with paper receipts. MSME sector has fallen out digital payments in a positive way post the pandemic. Customers have started to utilize cashless and contactless payment methods in the MSMEs industry with the ease of accessibility and record-keeping, which is relatively economical to adopt. This convenience and comfort of record-keeping for MSMEs have helped them to grow better.



Top Indian Fintech Brands enabling MSME:

Fintech companies are helping MSMEs to access collateral-free and easy-access loans to expand small-scale businesses.
Are you intrigued to know the Indian Fintech Brands which empower MSME? And what makes them leaders in the Fintech space in MSME in India?
We have highlighted just a few fintech brands empowering MSME. Here you go!

Kinara Capital
Kinara Capital, one of the Fintech digital platforms founded by Hardika Shah based in Bengaluru. This platform enables MSME to minimize paperwork and save time for customers and companies to speed up the credit approval process. It grants small business entrepreneurs fast and flexible loans without seeking collateral.

Lendingkart Finance, one of the major non-banking financial institutions (NBFC) initiated by Harshvardhan Lunia, assesses half a million applications distributing over a million lines of credit to more than 90,000 MSMEs in 1300+ cities across all 29 states and union territories.

Gurugram-based Alok Mittal founded Indifi, a loan business focused on the MSME market, in 2015. This startup disburses collateral-free loans of up to 50 lakhs. Do you know that Facebook India launched a ‘Small Business Loans Initiative’ program in collaboration with Indifi to assist small and medium-sized businesses (SMBs) obtain easy, collateral-free loans?

FlexiLoans, an SME fintech startup initiated by Abishek Kotari, Deepak Jain, Manish Lunia and Ritesh Jain in 2015, uses a branchless, agentless, and paperless business strategy to offer quick and affordable lending and collateral-free loans to SMBs in India.

What’s next in payments in MSME?

Indian MSMEs are becoming digitally savvy, offering several credits to meet the customers’ diverse business needs. India’s FinTech ecosystem is still in its infancy but expanding rapidly. This gives us a golden opportunity to shove it toward serving underserved and unserved MSMEs with realistic solutions to late payments and credit. Thus, MSMEs can energize their gross value from ’60 lakh crore to ‘180 lakh crore in the coming decades. To sum-up,
“There is no denying the fact that people relying on traditional payment methods are pretty much gone!”. For this growth momentum to continue, the emergence of digital payment services results in a desire for faster payment methods due to the constantly changing and expanding technologies.
It’s true that ‘Digital Payments are a game-changer for Indian MSMEs’!