Opinion: What makes merchants adopt digital payments?
Merchants across the board perceive little or no cost in cash transactions, which can be settled bilaterally and are anonymous
Digital payments form the bedrock of deeper financial integration for micro enterprises, which constitutes 99% of India’s approximately 60 million-strong micro, small and medium enterprises (MSMEs). Broader financial services, such as credit, insurance and wealth management, can be contextually and cost-effectively provided in digitized and personalized formats on top of digital transaction footprints. Such access to affordable finance can translate to financial stability and growth for business owners that are otherwise vulnerable to cash flow volatility and suffer from constrained access to capital to grow. And this can have a profound impact on job creation, economic growth and quality of life for hundreds of millions.