72 pc MSMEs are prioritising digital payments over cash: survey

According to a survey by web hosting solutions provider, Bluehost, Indian Micro, Small and Medium Enterprises (MSMEs) are prioritising payments digitally over cash. The survey further revealed that out of 400 MSMEs who participated in the survey, 72 percent transacted digitally as compared to 28 percent who chose cash.

With the onset of COVID-19, businesses have realised that they cannot go on without leveraging technology. In fact, it has accelerated the pace at which businesses, especially MSMEs, are adopting technology. About 19 percent of the MSMEs started a website after the coronavirus pandemic hit India. The top reasons for starting a website cited by the respondents were to present a professional front, promote their brand and acquire new customers.

The survey also revealed that a majority of respondents (66 percent) claimed to have created their own website while 34 percent said that they had to outsource the services from an external agency or freelancer. 23 percent of the small and medium businesses also got listed on ecommerce platforms to boost online presence of their companies or brands.

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Commenting on the findings of the survey, Manish Dalal, Managing Director of Bluehost India, said, "Many small businesses have experienced an accelerated digital transformation this past year, and they are now exposed to an array of tools that can help them grow and promote their businesses further. The use of digital technologies such as websites, digital payments and e-commerce have helped small businesses cope with social distancing measures and ensure business continuity."

Indian MSMEs contributes about 30 percent to the country's GDP and 48 percent to exports. This sector which forms the backbone of the Indian economy continue to struggle and stay afloat while recuperating from the impact of the two deadly waves of the COVID-19 pandemic.

Bluehost conducted the survey over the first two weeks of June 2021 with MSMEs belonging to segments such as retail, educational services, technology services, independent bloggers, consultant, advertising and marketing, travel and finance.