Achieving India’s ambitious goal of becoming a $5 trillion economy by 2027 hinges on liberating and empowering India’s small and medium business (SMB) sector.

Doubling the contribution of SMBs to our GDP, exports, and employment market depends primarily on equipping them with the right technological tools and solutions in the shortest time possible.

Fintech is already a key factor for boosting India’s MSME sector in Niti Aayog’s Strategy for New India@75. Two of the four focus areas—better credit availability and Industry 4.0 practices focusing on productivity boost—can be achieved only through greater fintech adoption.

Fintech—Unleashing the full potential of India’s SMBs

Affordable, customizable, scale-agnostic, innovative, and disruptive—fintech ticks all the boxes for enabling India’s SMB sector to maximize its growth potential.

At PayU, we focus on creating affordable tools to help SMBs leverage technology for growth.

• Creating new opportunities with disruptive technologies

SMBs are key to India’s economic growth because they facilitate the last-mile delivery of products and services, have a thorough understanding of the on-ground situation, and are best placed to anticipate changes in economic trends.

Using disruptive technologies like Artificial Intelligence and Machine Learning, fintech solutions can help SMB owners better utilize existing and new growth opportunities simultaneously. This can help SMBs use their strengths like agility, adaptability, and innovation to match or even overtake big firms.

• Data-driven decisions with analytics

Fintech solutions can help SMBs extract value from their most valuable yet under-utilized asset—data. Fintech can help SMBs better understand the links between their various functions and operations. Based on transaction volume, businesses can measure the impact of a recent marketing campaign on its sales.

SMBs can enhance efficiency using tools to track and analyze their key performance indicators (KPIs). Data-driven decisions will allow businesses to carry out a thorough cost-benefit analysis which can help improve customer experience and avoid clumsy experiments and costly failures.

• Fraud-proofing the business

Security breaches can impact the reputation of a business, besides causing financial repercussions. An ambitious plan to establish an omnichannel presence can falter unless the expansion is backed by a robust and scalable security infrastructure. Fintech allows SMBs to use cutting-edge technologies and solutions to improve security, prevent fraud, and enhance regulatory compliance without breaking the wallet.

Real-time analysis of payment metrics can help businesses avoid fraud, minimize risk, finetune their sales strategy, understand customers’ preferences, and identify infrastructural shortcomings all at the same time.

Fintech for SMB growth

Fintech combines the financial muscle of big banks with the agility of a startup to offer tactical and strategic solutions to businesses of all shapes and sizes. Technology allows businesses to get rid of the one-size-fits-all approach and deploy customized and targeted strategies.

With PayU, small or medium businesses can apply cutting-edge tech solutions to their core competencies to create a safe and enjoyable buying experience for their customers and, ultimately, a sustainable route to growth and profitability for the enterprise.

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