How digital payments are empowering India’s entrepreneurs

By Amit Kumar

In today’s India, where the entrepreneurial spirit thrives, small businesses are the backbone of the economy. However, managing cash flow and receiving payments can significantly challenge these businesses. Traditional methods like cash on delivery (COD) or paper cheques often lead to delays, discrepancies, and a lack of transparency. This is where digital payments are revolutionizing small businesses and empowering them to reach new heights.

Solving Cash Flow Headaches:

One of the most significant advantages of digital payments is eliminating cash handling. No more worrying about keeping large amounts of cash in hand, the risk of theft, or the time-consuming process of counting and depositing money at the bank. Digital payments are instant, allowing businesses to receive money directly into their bank accounts as soon as a transaction is completed by their customers. This improves cash flow significantly, making it easier for Small businesses to manage  finances and plan for future investments.

Reaching New Customers:

Digital payments open doors to a broader customer base. Imagine a customer wanting to buy something from the store but not carrying cash. With digital payments like QR codes, UPI (Unified Payments Interface), or mobile wallets, businesses can now cater to these customers, eliminating the barrier of cash-only transactions. Additionally, online marketplaces and social media platforms often require digital payment options to complete purchases. By embracing digital payments, small businesses can expand their reach beyond the local area and tap into a national or international customer base.

Simplified Record Keeping:

Gone are the days of relying on piles of receipts and handwritten records. Digital transactions provide a clear and organized record of all income and expenses for businesses. Every payment received is automatically recorded with details like date, time, and amount. This simplifies bookkeeping and makes it easier to track sales trends and identify areas for improvement. Additionally, digital receipts are readily available for businesses and their customers, eliminating the need for physical copies and saving on paper.

Enhanced Security and Transparency:

Digital payments offer a much higher level of security compared to cash transactions. There’s no risk of stolen cash or lost cheques. Most digital payment platforms have robust security features like two-factor authentication and encryption, minimizing the risk of fraud. Additionally, digital transactions provide complete transparency. You can easily track the status of a payment and receive real-time notifications, ensuring peace of mind for both businesses and their customers.

Making Payouts Easier:

Digital payments aren’t just for receiving money; they also make payouts convenient. Digital payout platforms can easily enable businesses to process payouts to suppliers and vendors with easy reconciliation, tracking and analytics. This streamlines financial operations and saves valuable time for small businesses so that they can focus on the business.

Digital enables level playing field for small businesses

Small businesses often struggle to attain profitability and business growth in the increasingly competitive business environment. Embracing technology can help small enterprises easily solve business complexities, and digital payments bring efficiencies in money management and financial operations. The data and analytics provided by Digital Payment Platforms also brings competitive advantage to small players and enables them to use these insights to grow their business. 

Government Initiatives and Support:

The Indian government is actively promoting digital payments, recognizing their potential to empower small businesses. Initiatives like Digital India and Startup India have fostered a digital infrastructure that makes adopting digital payments more accessible than ever. Several government schemes offer incentives and subsidies to encourage small businesses to adopt digital payment solutions.

It is easy to get started with Digital Payments:

Transitioning to digital payments is simple in today’s world. Many Banks and Payment Fintechs offer plug-and-play solutions like Payment Gateway API, Payment Links, Payout API that businesses can avail and integrate into their business with simple Onboarding and KYC process to get started with digitizing payments and business.

(The author is Amit Kumar, Chief Technology Officer, Easebuzz, and the views expressed in this article are his own)