How MSMEs can boost productivity with the right payment solutions

30 / 07 / 2024

MSME contribute nearly 30% of India’s GDP and account for about 40% of all manufacturing in the country. Beyond their productivity, MSME are also the largest employment sector in India, providing jobs to 62% of the workforce. The growth of the MSME sector has significantly boosted the Indian economy.

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To support this growth, the government has implemented various measures, including easier access to credit guarantees and loans, tax concessions, subsidies, and grants. On the operational side, the digitisation of the economy has played a crucial role in the sector’s expansion. One key area of digitisation that has been particularly beneficial is payments.

The Online Payment Boon for MSMEs

The most noticeable change brought about by online payments is the speed and convenience of transactions. Traditional payment methods like cash on delivery and post-dated cheques have been replaced by QR codes and Buy Now Pay Later (BNPL) options. Issues such as discrepancies and lack of clarity around payments have been resolved with online payment solutions.

  • Easier cash flow management – Small businesses can now take their receipts into account much faster. They don’t have to handle large volumes of cash, which has lowered the risk as well as the hassle involved. With digital payments getting reflected in the bank account instantly, cash flow management becomes easier for the merchant. Cash flow itself becomes easier, and as a result, you can plan your finances more effectively.
  • Widening market presence – Online payment has also helped MSMEs to widen their customer base. It has made them and their products and services accessible to all. Digitisation has also inspired many brick-and-mortar businesses to explore online sales possibilities.
  • Better transaction management – While online payments have made receiving easier, it has also streamlined payouts. Vendor payments, refunds and other settlements can be done much more effortlessly now. This has been made easier with the services provided by payment service providers.
  • Efficient record-keeping – Keeping track of the finances is less time-consuming for the merchants and requires less manpower. All receipts and payments are automatically updated through the installed payment solution, capturing all relevant information related to the transaction.
  • Increased competitiveness – Digital payment solutions have upgraded small businesses and put them at par with large enterprises. MSMEs can now offer customers a digital customer journey similar to that of a big brand. The premium checkout experience, reports, analytics and cutting-edge features provided by payment solution providers have given a competitive advantage to small businesses.

How In-Store Requirements Are Met?

It is clear that digital payments have significantly enhanced the prospects and productivity of small businesses in the MSME sector. Here are several ways small businesses or merchants can utilize different in-store payment solutions to further boost their operations:

Merchants with in-store sales segments should use devices that process payments quickly and conveniently. Among these devices, Point of Sale (PoS) terminals are the most common. PoS machines provide a seamless billing experience with mobile network and WiFi connectivity. They can be used as countertop billing devices, at kiosks, and for deliveries.

Worldline is a leading payment solution provider in India, offering products tailored to the diverse needs of merchants and MSMEs. For example, the Worldline PoS machine accepts all types of payments, including swipe, dip, tap payments using credit and debit cards, UPI payments through any app, EMI, etc. You can integrate Worldline POS into your billing software to streamline bookkeeping. Additionally, for a cost-effective card acceptance solution, merchants can use Worldline’s Tap on Mobile to accept payments directly on their Android smartphones.

Bringing Remote Customers to the Fold

Payment solution providers like Worldline have enabled MSMEs to attract a broader customer base. Worldline’s Next-Gen Payment Gateway offers an industry-best transaction success rate, significantly enhancing your customers' payment experience. MSMEs with subscription-based business models can also use Worldline’s Subscription Pay for efficient payment lifecycle management.

Beyond efficient online payments, partnering with a leading payment solution provider like Worldline grants access to numerous advanced features. For instance, Worldline’s Dynamic Currency Conversion (DCC) feature allows customers to pay in their preferred currency. Customers can also choose from various EMI plans, including card-based EMI, low-cost EMI, and cardless EMI, available through both PoS and payment gateways. Worldline also simplifies inventory management and provides local wholesaler rate comparisons for optimal sourcing.

Digitised Growth for MSMEs

Small businesses and startups transitioning to digital payments should adopt a payment solution provider that meets their specific needs. Digital payment solutions are pivotal in the growth and success of MSMEs, offering numerous advantages that help these businesses thrive in a competitive market.

Worldline's comprehensive product range includes solutions that cater to various business needs, ensuring that MSMEs can find the perfect fit for their operations. Worldline offers a suite of advanced features that go beyond basic payment processing, check them out> 

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Worldline India Editorial Team

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