Digital Payment Rises, Upto 75% for Some IT MSMEs

In the year 2021, digital payment by customers has greatly risen, according to the Weekly Statistical Supplement of the RBI.

The RBI Weekly Statistical Supplement quotes the Union Minister of State for Finance as saying that as compared to the FY 2017-18, in the FY 2020-21 digital payments has risen substantially - from Rs 1459.02 Crores to Rs 4371.18 Crores. This is an all India figure, including all sectors.

Dilip Modi, Founder, Spice Money said in this context, "It is great to witness the exponential growth in the total volumes of digital payments from 1459.02 crore in FY 2017-18 to 4371.18 crore in FY 2020-21, as stated by the Union Minister of State for Finance in the weekly statistical supplement of RBI. Payments are an integral part of the rural economy and this upward trend indicates the expansion of digital payments to Bharat. We have witnessed Spice Money Adhikaris or banking correspondents leading this expansion by introducing AePS and mATM services in their localities and bringing them onto the map of digital payments.’’

Financial inclusion has also been at the forefront with initiatives like the recently launched e-RUPI that will revolutionise the digital payments system by making the transfer of benefits seamless, cashless and contactless. Payment Infrastructure Development Fund (PIDF) scheme is another initiative that will not only make digital payments services more accessible for the semi-urban and rural population but also support banking correspondents and merchants.

"The importance of digital payments has never been more clear for a sustained and balanced growth of the economy and this can be achieved by prioritising banking the unbanked.”

--Dilip Modi, Founder, Spice Money 

This is more than 300% increase in the digital payment by the end customers.

"in my organisation, digital payment by my customers has risen substantially. Almost 75% of total payments in my organisation are digital."

Julian John, CEO, Zion Technologies

Commenting on the same theme, Julian John, CEO, Zion Technologies says that in his organisation, digital payment by his customers has risen substantially. Almost 75% of total payments in his organisation are digital.

There may be many reasons for this appreciative rise. One big reason is Corona and lockdown, which has necessitated online payments by the customers. Other reasons may be that more and more customers are adopting digital technologies and going online to make payments.

The IT MSMEs should take note of this and move online to do their business as it is beneficial for them.