In a recent study titled ‘Decoding Digital Payments: A Retailer Perspective,’ NeoGrowth, an MSME-focused digital lender in India, sheds light on the evolving digital payments landscape among Indian retailers. Drawing from a dataset of 3,000 retailers and a survey of 1,000 retailers across the country, the study encompasses 25-plus cities and 70-plus industry segments.
Ubiquity of UPI in MSME Sales
The study reveals a significant trend among Micro, Small, and Medium Enterprises (MSMEs), with 70% reporting that half of their payments to suppliers are conducted through the United Payments Interface (UPI). Moreover, 7 out of 10 retailers anticipate that over half of their sales will be transacted via UPI in the next three years.
Preference for On-the-Go Digital Payments
The survey underscores UPI’s higher adoption compared to other digital payment methods like cards and online banking. It indicates a shift in consumer behavior, with customers preferring on-the-go purchases using digital payment options. Retailers, recognizing this preference, are increasingly embracing digital transactions, with UPI emerging as their preferred mode due to its customer convenience and swift payment processing.
Digital Transformation in Retail
As the study delves into the dynamics of digital payments adoption in the retail sector, it becomes evident that UPI’s prominence is reshaping the way MSMEs conduct transactions. The convenience and speed offered by UPI are driving both retailers and consumers towards a more digitally-driven retail landscape.
