Digital tools are gaining traction among India's MSMEs, with UPI and Aadhaar-enabled banking accounting for 61 per cent of transactions at semi-urban and rural MSME retail stores, while 71 per cent of retailers use AI tools to improve daily business operations, according to PayNearby's MSME Digital Index Report 2026.
According to the report, 87 per cent of respondents feel more confident using digital tools than last year, while 82 per cent are comfortable using them for daily business activities. The shift is reflected in payment behaviour, with 80 per cent reporting increased digital payment usage at their stores over the past year.
