New Delhi, June 23: Digital payment systems such as UPI and Aadhaar-enabled banking services now account for 61% of MSME transactions, highlighting the rapid shift towards digital financial ecosystems in India, according to a recent report.
The findings underline the growing dependence of micro, small, and medium enterprises (MSMEs) on digital platforms for daily business operations, including payments, receipts, and financial management. The report notes that improved access to seamless and low-cost digital infrastructure has significantly boosted financial inclusion and operational efficiency across the sector.
Alongside the rise in digital payments, the report also highlights a steady increase in artificial intelligence (AI) adoption among MSMEs. Businesses are increasingly leveraging AI-powered tools for customer engagement, inventory management, fraud detection, and data-driven decision-making.
Experts say the combined growth of digital payments and AI adoption is transforming the MSME landscape, enabling greater transparency, faster transactions, and improved productivity. This shift is also helping smaller enterprises integrate more effectively into formal financial systems.
The report further suggests that continued expansion of digital infrastructure, coupled with supportive policy measures, will play a crucial role in strengthening India’s MSME ecosystem and driving long-term economic growth.
Overall, the findings reflect a significant digital transformation within the MSME sector, positioning it as a key driver of India’s evolving digital economy.
