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MSMEs prefer UPI at 43% and Aadhaar Banking at 38% for last-mile banking services

PayNearby releases its second edition of ‘MSME Digital Index’ – a detailed analysis of tech awareness among MSMEs in Bharat

• 65% of MSMEs use digital technology for daily business operations
• 75% of those who use digital technology are in the age group 18-30 years
• 66% prefer mobile hotspots for daily operations, with 26% using Wi-Fi routers, 5% ethernet cables, and 3% dongles
• YouTube is preferred by 41% for social media and 72% for entertainment.
• 29% of MSMEs use accounting software, and 17% utilise POS software as their top applications for managing their businesses

The MSME sector in India is experiencing significant growth, with a notable shift in small business owners’ perspectives towards adopting technology in recent years. PayNearby, India’s leading branchless banking and digital network, revealed today that over 65% of Micro, Small, and Medium Enterprises (MSMEs) utilise some form of digital technology for their daily operations. The report also emphasised that 68% of MSMEs acknowledged the growth and beneficial impact of adopting digital technology on both their businesses and personal lives.

The insight was shared as part of a detailed survey titled ‘MSME Digital Index 2024,’ a Pan-India report showcasing technology consumption by MSMEs at the last mile, released by PayNearby today. In its second edition, the report was prepared based on a nationwide survey conducted by the company among 10,000+ MSMEs in the retail space (kirana stores, mobile recharge stores, medical stores, customer service point (CSPs), travel agents, among others), recording their awareness of and patterns in tech consumption in their professional and personal lives.

According to the survey, 75% of small business owners aged 18-30 were the most digitally adept, with over 87% in this age group using smartphones for daily business operations and accessing digital content. They were closely followed by the age group of 31-40 years. Notably, 36% of them cited that their monthly income is more than ₹15,000. The widespread adoption of smartphones highlights the internet’s crucial role in bridging infrastructure gaps and promoting tech inclusion among MSMEs at the grassroots level.

Smartphones emerged as the most popular digital device, preferred by 70% of users. Among the respondents, 68% reported using smartphones for business activities, consuming between 2GB to 5GB of internet daily. Over 51% of these businesses spend less than ₹500 per month on internet usage. The Digital India mission and BharatNet initiative have accelerated internet penetration in rural areas, making it affordable and bridging the digital divide. For internet access at work, approximately 66% used mobile hotspots, followed by Wi-Fi routers at 26%. Ethernet cables and dongles were used by only 5% and 3%, respectively. At home, 75% relied on mobile internet for connectivity.

The use of digital devices was primarily for work purposes, with 36% spending 4-6 hours on their phones. However, when it came to leisure activities such as social media or online entertainment, the report noted that 66% spent less than 3 hours. Among apps, YouTube emerged as the most preferred for both social media (41%) and entertainment (72%). Interestingly, 58% of respondents stated that they did not have any gaming apps installed on their phones.

The report stated that among all tech-savvy MSMEs, a majority of 29% used accounting software, followed by POS software and Customer Relationship Management (CRM) software at 17% and 14%, respectively, to manage their business operations. Meanwhile, 6% indicated they do not use any software and instead rely on manual methods. When asked about the purpose of using digital devices in business operations, 41% used them to streamline financial transactions and efficiently track business expenses, while 18% stated that technology was used to accelerate processes. This highlights the necessity of fostering a thriving tech ecosystem to empower MSMEs and drive their growth for a stronger Bharat.

In the financial services category, UPI at 43% and Aadhaar banking at 38% were the two most popular banking services used by MSMEs at the last mile. Additionally, WhatsApp and WhatsApp Business were collectively the most widely used messaging apps, with a usage rate of 97%.

When asked about the positive impact of technology on their businesses, 31% indicated that it has enhanced business growth by improving operational efficiency, while 27% reported increased sales and income due to technology adoption. As for the main challenges in using technology for business operations, 36% cited resistance to adopting new technology, and 18% struggled with the high costs associated with its implementation. Interestingly, 52% favoured English as their preferred language for understanding technology and conducting business transactions, followed by Hindi at 21%.

Commenting on the report findings, Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, emphasised, “The MSME sector is pivotal to our economy, and their adoption of digital technologies is crucial for India’s growth. The MSME Digital Index 2024 showcases significant progress in technology adoption while highlighting persistent challenges.  We believe that MSMEs should be supported in their digital transformation journey and ensure that technology’s benefits reach every corner. By leveraging artificial intelligence (AI), augmented reality (AR) and machine learning (ML), MSMEs in rural India can thrive in a digital-first economy. We must foster an inclusive ecosystem that enhances skills and removes barriers, enabling all businesses to embrace digitalisation. Together, we must envision a future of limitless opportunities, driving economic growth and social upliftment in the real Bharat.”

Commenting on the MSME Digital Index, Jayatri Dasgupta, CMO, PayNearby, said, “This comprehensive report underscores the importance of digital literacy and infrastructure in empowering MSMEs. Our findings show a promising trend of increasing tech adoption, but also point out the areas that require more focus and investment. There is a need to innovate and provide solutions that bridge the digital divide and drive progressive growth.”

“Focusing on women respondents, who represent 32% of the survey, the data highlights the pivotal role technology plays in fostering women’s empowerment and financial independence. Among the female respondents, 85% own smartphones, enabling their engagement in digital transactions. The growing usage of digital payments, at 40% among women entrepreneurs, underscores their confidence in leveraging technology for business growth. PayNearby’s Digital Naari initiative aims to further empower women by enhancing their digital literacy and providing them with the tools needed to achieve financial independence, ultimately contributing to a more inclusive and prosperous Bharat,” she further added.

J&K witness 134% growth in value of AePS transactions

• Retail stores in J&K also witness a growth in MicroATM transactions by 31%
• Northeast India witness’s uptick in AePS transactions, Meghalaya taking the lead in growth in transaction volume
• Telangana and Uttar Pradesh were the top two states that have seen a rise in e-commerce transactions at retail stores
• UPI QR code transactions at retail outlets in semi-urban and rural region grew by 84%

The significant adoption of financial services in Jammu & Kashmir has led to its transition towards a ‘Viksit’ Union Territory, aligned with the broader vision of a Prosperous Bharat. The government’s initiative towards digitization has further resulted in the success of AePS (Aadhar-enabled Payment System) adoption in the union territory. A similar trend has been witnessed in a report released by PayNearby indicating a growth of over 134% in value and 89% in the volume of AePS transactions in FY24, at Jammu & Kashmir retail stores. Likewise, MicroATM transactions at retail stores in the Union Territory saw a 31% increase in both value and volume.

PayNearby, India’s leading branchless banking and digital network, today released its ‘Atmanirbhar Bharat Digital Empowerment’ report highlighting the growing acceptance of assisted financial and digital services at semi-urban and rural retail stores such as kirana stores, medical stores, and mobile recharge stores.

The report indicated a similar trend in the Northeastern states of India, which have seen remarkable growth in AePS transactions. Meghalaya tops the chart with a 1000% growth in AePS transaction value and a 712% increase in the number of transactions, showcasing the region’s rapid acceptance of financial services. This is followed by Nagaland and Assam, both of which also demonstrated impressive growth in AePS transaction value and the number of transactions.

In terms of MicroATM transactions, Mizoram and Meghalaya witnessed a growth in transaction value and volume. Transaction value both these states grew by 55% and 43% respectively, whereas volume grew by 33% and 43% respectively.

Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, said, “Over the past few years, we have witnessed an extraordinary transformation in financial & digital services across Bharat, especially in Jammu & Kashmir and the Northeast states. This reflects the critical role of retail outlets in facilitating easy access to banking services, especially in areas where traditional bank branches may not be easily accessible. We are dedicated to empowering local retailers and ensuring that essential financial and digital services are accessible to everyone and everywhere.”

The report further highlights the growing reliance on and trust in local retail stores to provide essential financial services such as cash withdrawals, deposits, credit, e-commerce, and insurance. Notably, Assam led with an increase in the number of retailers offering financial services and growth in overall transaction volumes at retail stores. Additionally, Telangana and Uttar Pradesh were the top two states experiencing a rise in e-commerce transactions at these stores, showcasing an increase in the adoption of online shopping among the aspirational population that requires handholding in conducting such transactions.

Moreover, Punjab has witnessed the highest growth in disbursing MSME loans through retail stores, with a notable 29% increase. Insurance disbursals through retail stores also saw a significant uptick, with Kerala and Madhya Pradesh recording 24% and 14% increase, respectively.

Additionally, the report indicates a strong shift towards digital payments with the transactions on UPI QR codes at retail outlets growing by an impressive 84%.

The report has been prepared based on transactions across 12 lakhs plus retail touchpoints throughout the country. The findings of the report are based on business data collected for a comparison period, ranging from FY 2023-24 vis-à-vis the corresponding previous financial year.

• Retail stores in Uttar Pradesh witness second highest growth, record 164% growth in e-commerce transactions
• Popular categories include grocery, mobile & accessories and cloths
• Average ticket size for e-commerce transactions is INR 1500

E-commerce is set to witness a significant boom by 2026, with the demand expected to come from semi-urban and rural areas. Assisted e-commerce is one such category which is gaining popularity among tech-shy Bharat consumers. This growth is also indicated in a data report released by PayNearby, India’s leading branchless banking and digital network. Local retailers and kiranas in Telangana and Uttar Pradesh witnessed the highest growth in assisted e-commerce transactions, recording more than 1100% and 164% increase respectively.

PayNearby’s ‘Atmanirbhar Bharat Digital Empowerment’ report highlights the growing acceptance of assisted financial and digital services at semi-urban and rural retail stores such as kirana stores, medical stores, and mobile recharge stores.

Some of the popular categories in the ecommerce segment and branded shops segment include grocery, mobile & accessories and cloths. The average ticket size in the ecommerce and branded shop category was INR 1,500 and INR 3,000 respectively.

Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, said, “The rural commerce is undergoing a significant shift with aspirational customers getting access to various products at a nearby store. At PayNearby, we are leveraging the Distribution-as-a-Service (DaaS) architecture so that tech-shy customers can embrace the e-commerce revolution with superior experience, local retailers have enhanced income opportunities and e-commerce partners can expand footprint, even to the remotest of areas. We are dedicated to empowering local retailers and ensuring that essential digital and financial services are accessible to everyone and everywhere.”

The report further highlights the growing reliance on and trust in local retail stores to provide essential financial services such as cash withdrawals, deposits, credit, and insurance. Notably, Assam led with an increase in the number of retailers offering financial services and growth in overall transaction volumes at retail stores.

Moreover, the adoption of AePS and Micro ATM services at retail stores in Jammu & Kashmir and Northeastern states further provides a boost to the Government’s vision of a ‘Viksit’ Bharat. While AePS adoption saw over 134% growth in value and 89% in volume of transactions at retail stores in J&K, there was a 31% rise in MicroATM transactions in the region. Similar trends are observed in Northeastern states, with Meghalaya witnessing a staggering 1000% growth in AePS transaction value and a 712% increase in transactions. This is followed by Nagaland and Assam, both of which also demonstrated impressive growth in AePS transaction value and the number of transactions.

Furthermore, Punjab has witnessed the highest growth in disbursing MSME loans through retail stores, with a notable 29% increase. Insurance disbursals through retail stores also saw a significant uptick, with Kerala and Madhya Pradesh recording 24% and 14% increase, respectively.

Additionally, the report indicates a strong shift towards digital payments with the transactions on UPI QR codes at retail outlets growing by an impressive 84%.

The report has been prepared based on transactions across 12 lakhs plus retail touchpoints throughout the country. The findings of the report are based on business data collected for a comparison period, ranging from FY 2023-24 vis-à-vis the corresponding previous financial year.

PayNearby, India’s leading branchless banking and digital network, has announced a strategic partnership with MyShubhLife, an embedded credit platform. This collaboration aims to provide its distributors with easy access to revolving credit lines, enhancing financial agility in the MSME sector.

This partnership comes at a crucial time, with a growing demand for digital financial services among MSME distributors, particularly in underserved and remote areas. By leveraging innovation and technology, both companies are poised to meet the evolving needs and drive financial progression at scale.

MyShubhLife’s innovative technology platform, powered by advanced analytics, AI, and machine learning from its Datasciences Centre of Excellence (CoE), enables the scoring of thin credit files and facilitates simple micro-lending experiences for customers. This enables them to secure loans seamlessly, based on PayNearby’s bharosa score parameters.

PayNearby, with its extensive reach and presence, serves 75% of India through its DaaS network. The platform offers a wide range of services, including cash withdrawal, ecommerce, bill payments, savings, travel and insurance. With over 12+ lakh microentrepreneurs spread across 22,000+ PIN codes, PayNearby is at the forefront of driving financial accessibility across Bharat.

Commenting on the partnership, Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, said, “We aim to provide our distributors with enhanced access to revolving credit lines, enabling them to secure better working capital and drive growth in their businesses. This partnership underscores our commitment to empowering our distributors with the financial tools they need to thrive in today’s dynamic market. By leveraging innovative solutions and technology, we strive to address the evolving requirements of our distributors and provide financial access. Together, we are dedicated to creating a lasting impact and fostering economic growth across the country.”

Monish Anand, CEO and Founder, MyShubhLife remarked, “The company has always focused on building a solid data-science-based platform to help speed up financial inclusion, with a special focus on the underserved MSME merchants across the country. The MSME segment in India is still largely ignored by the traditional banks and financial institutions due to issues such as a lack of documentation and poor or no credit history. As an organization our focus has always been the underserved and unserved segments. Our sophisticated embedded credit platform offers several advantages to the end customer. This strategic collaboration will help us achieve our shared goal of boosting the accessibility of credit and creating financial agility in the MSME space,”.

Together, we are committed to unlocking new opportunities, advancing financial accessibility, and empowering businesses to thrive in the digital age.

The fourth edition of the report gives a detailed analysis of financial consumption by women at retail stores in 2023-24.

• 45% of women report availing benefits from government-backed schemes.
• 85% of them have limited or no access to recurring income source
• 48% of women prefer dealing in cash, followed by UPI QR and cards, with over 95% of women preferring AePS for cash withdrawal.
• 71% of women exhibit a higher inclination towards short-term investments.
• Insurance awareness among women grew to 29%, but consumption is only 2%.
• 70% of women hold savings accounts, and 68% of women indicate a willingness to take formal credit

Mumbai, March 06, 2024: PayNearby, India’s leading branchless banking and digital network with over 50 Lac retail touchpoints, reveals that over 63% of women in Bharat aspire to start their own business, reflecting a strong desire for financial independence and self-reliance. This insight was shared as part of a Pan-India survey report titled “PayNearby Women Financial Index (PWFI),” showcasing financial consumption by women at retail stores. The survey was conducted by the company among over 5,000 retail stores in the country recording financial transactions of women consumers as observed in those outlets.

The report highlights the preference for biometric authentication, with over 95% of female customers opting for AePS for cash withdrawal. While cash remains the favored mode of transaction, with 48% of women favoring it, Aadhaar-led transactions and UPI QR codes are gaining momentum in double digits. Cards continue to have a minimal presence in this segment. Notably, women aged 18-30, followed by 31-40, are the most digitally adept, showing a strong inclination towards financial transactions. Interestingly, 41% of women mentioned that they do not use any payment app on their phones.

Cash withdrawal, mobile recharges, and bill payments emerge as the top three services availed by women at PayNearby retail outlets. The most common withdrawal range falls between ₹1000-2500, while EMI payments typically range from ₹500-1000. The report reveals that 70% of women hold Jan-Dhan savings accounts primarily used for cash withdrawals. More than 25% of women admitted to their husbands managing their bank accounts instead of themselves.

Among the top three saving goals, ‘child education’ topped the list, followed by ‘medical emergency’ and ‘buying household electronic items’. 54% of women indicated ₹750-1000 as their preferred range for monthly savings, highlighting their approach towards financial planning. Notably, only 27% of the respondents preferred to save above ₹1500 to accrue a corpus in the long run. 71% of women exhibited a higher inclination towards short-term investments, with savings tenure between 3-5 years. The report observes a marginal but noteworthy trend towards investment diversification, particularly in recurring and fixed goal-based deposits. This suggests an increasing awareness among women regarding alternative investment avenues, reflecting a growing interest in financial management and wealth creation.

Interestingly, 74% of women rely on their family members when making investment decisions, whereas 11% seek guidance from financial advisors. The financial advisors were typically women influences in their affinity. The survey also revealed that 16% of women were extremely aware, and 55% were moderately aware of various government schemes and initiatives related to financial well-being. Impressively, 45% of women report availing benefits from government-backed initiatives indicating a growing number of women availing these schemes.

Despite growing awareness of insurance products among women (29%), consumption remains low at 2%. 45% of women report benefiting from government-backed schemes. The survey indicates a willingness among 68% of women to take formal credit, emphasizing the need for affordable credit solutions. Women cited emergency expenses like medical bills, home repairs, and children’s education or for agricultural needs such as buying seeds, fertilizers, or equipment as reasons to avail credit.

The PWFI report also highlights the increasing adoption of online commerce (24%) and online entertainment (18%) among women. Online commerce saw a decent adoption among women at retail stores with daily groceries & household items (at 27%) being the most commonly ordered category. This was followed by clothing & accessories and home & kitchen items at 24% and 23%, respectively. It ratifies the fact that women at the last mile are aspirational and validates the latent demand for such services among them. Travel bookings and PAN card issuance have seen significant uptake, with 96% of the respondents showed a willingness to book a rail ticket from their nearby store. This showcases women’s desire to become self-reliant and financially included.

Commenting on the findings, Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, said, “It is delightful to see that women in Bharat are asserting their entrepreneurial spirit more than ever with over 63% seeking avenues for income augmentation. In the journey towards a nation’s development, women should be equal stakeholders. At PayNearby, we recognize women as the GDP reserve of our nation, wielding the power to drive social and economic change. As an institution, we are aligned with the government’s shift from women development to women-led development.”

“The increasing adoption of newer services such as e-commerce, mutual funds, and fixed deposits signifies a promising trend in rural areas, where women are gearing up to engage in formal economic activities. We aim to empower women with greater autonomy over their savings, investments, and other crucial aspects. Sashakt Naari, Sashakt Desh,” Bajaj added.

Jayatri Dasgupta, CMO, PayNearby, said, “Bharat stands on the threshold of a profound digital transformation. Yet, to fully unlock its potential, we must equip our women with the tools necessary to integrate seamlessly into this rapidly evolving digital landscape. With the launch of our fourth edition of PWFI, we undertake a comprehensive assessment of our progress and chalk out the roadmap to make women equal participants in Bharat’s growth journey.”

With our recently launched Digital Naari initiative, we are providing additional income opportunities for women at the last mile, enabling them to provide financial and digital access to their communities at their convenience of time, location (from home/store), and product preferences. Our aim is to create a women-led development that breaks down technological and financial barriers and creates a more equitable society”, Dasgupta added.

© 2024 Nearby Technologies Private Limited. All rights reserved.

PayNearby, India’s leading branchless banking and digital network has unveiled the Digital Naari platform that aims to generate long-term self-employment for women across Bharat. This program is designed to provide additional income generation opportunities for women in rural and semi-urban areas, recognising their pivotal role as equal contributors in the nation’s growth.

Aligned with the Government’s ‘Lakhpati Didi’ initiative, the platform seeks to onboard and uplift 1 lakh women by the end of 2025, facilitating their economic empowerment. The goal is to help women business owners, single women, and women with literacy challenges to have sustainable livelihood opportunity while enhancing their financial well-being and fostering self-reliance.

Through our Digital Naari platform, the uplifted banker didi can provide a diverse range of financial and digital services to the masses. The banker didi will have the flexibility to offer services at her convenience in terms of time, location (from home/store), and product preferences. Catering to the needs of rural women, the services include cash withdrawal, bank account opening, money transfer, recharge, assurance (insurance + assets), credit, and e-commerce, facilitating their path to financial literacy and financial independence.

Currently, PayNearby has a strong network of over 10,000+ women collectively steering more than INR 1000 crores of transaction annually. The Digital Naari platform aims to broaden this network by partnering with organizations, self-help groups, and individuals dedicated to promoting sustainable livelihood among rural women.

Commenting on the launch, Mr. Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, said, “In the journey of a nation’s progress, true advancement is achieved when women stand as equal contributors. At PayNearby, we recognize women as the GDP reserve of our nation, wielding the power to drive social and economic change. It is our privilege to participate in the ‘Lakhpati Didi’ initiative, dedicated to unleashing their potential and contributing to a sustainable future. Our collaborations with various livelihood missions, including Uttar Pradesh State Rural Livelihood Mission (UPSRLM), Rajasthan Grameen Aajeevika Vikas Parishad (Rajeevika), Grameen Foundation India, are propelling countless women towards economic independence and societal recognition through our Digital Naari app. We extend an open invitation to like-minded institutions and self-help groups to join us in maximizing the reach of this initiative and empowering women.”

Jayatri Dasgupta, CMO, PayNearby, stated, “Launching the Digital Naari platform marks a crucial stride in fostering economic empowerment for women across Bharat. We believe that economic empowerment is key to women’s self-reliance and their transformative journey. With ‘Digital Naari’ program we are sowing the seeds of strength, resilience, and self-reliance across the nation by giving every woman in the country a sustainable livelihood and an opportunity to lead life at her own terms. Sashakt Naari, Sashakt Desh.”

About PayNearby:

Incepted in April 2016, PayNearby is India’s leading branchless banking and digital network. PayNearby operates on a B2B2C model, where it partners with neighbourhood retail stores and enables them with the tools to provide digital and financial services to local communities. PayNearby’s mission is to make financial services available to everyone, everywhere. The company aims to simplify high-end technology so that it can be easily assimilated at the last mile while transforming the lives of its retail partners and customers.

Today, PayNearby, through its tech-led DaaS (Distribution as a Service) network, serves 75% of India and is enabling services like cash withdrawal, remittance, aadhaar banking, bill payment and recharges, savings, travel, digital payments, insurance and more. Currently, PayNearby’s 50 lakh plus microentrepreneurs across 20,000+ PIN codes assist 30+ crore customers across the country to the tune of more than ~8000 crores GTV per month.

To download the App, please click: Digital Naari App Link

Launch Video: https://youtu.be/Qq2tBhfeudo

Initiative to facilitate citizens at the last mile with affordable insurance options and increase insurance penetration in the country largely covering semi-urban and rural India

Mumbai, 04 January, 2024: PayNearby, India’s leading branchless banking and digital network and Star Health and Allied Insurance, one of India’s leading health insurance specialists, entered into a strategic partnership to make health insurance coverage more accessible and affordable across the country, especially among its semi-urban and rural population. The strategic alliance will be instrumental in insuring millions of uninsured across the country through PayNearby’s million+ active Distribution-as-a-Service (DaaS) network, by bringing Star Health’s curated insurance products to local retail stores.

For health insurance to reach Bharat, it requires an innovative approach that offers affordable coverage, is easily accessible and eliminates the need for excessive paperwork. With the Star Health-PayNearby partnership, customers will now be able to conveniently buy tailored insurance offerings at their nearest retail store, assisted by their trusted local retailers. Through PayNearby’s robust DaaS network across 22,000+ PIN Codes, customers will gain seamless access to a variety of innovative bite-sized health insurance products from Star Health, including Group Personal Accident and HospiCash policies. PayNearby partnered retailers will handhold customers throughout the buying journey, ensuring instant and hassle-free issuance. Star Health’s convenient claims process, valued added offerings like free telemedicine consultations with expert doctors, personalized wellness programs and free annual health checkups will enhance the insurance experience.

Commenting on the partnership, Anand Kumar Bajaj, Founder, MD & CEO, PayNearby said, “For India to be truly progressive, there is an urgent need to scale simplified health insurance services for the masses as it improves access to quality healthcare services for all. However, as per the recent PayNearby Bharat Health Index (BHI) 2023 report, the level of insurance awareness among Bharat’s last mile is abysmally low. 55% have never heard of insurance, and among those aware of insurance, only 32% had taken some form of insurance in their lifetime. Additionally, a substantial 38% cited affordability as a major hindrance, while 36% did not know where to buy insurance from. Regarding health coverage, 32% mentioned limited availability of health insurers and lack of information as the primary challenge, closely followed by high premiums and complex documentation processes. These numbers, while worrisome, present an opportunity too. An opportunity to use technology to find breakthroughs in product democratisation and distribution so that every citizen is safe from the uncertainties of life.

For insurance to gain inroads in Bharat, it needs to be easy to understand and easy to consume. Our partnership with Star Health solidifies our commitment to making quality health coverage more economical and available to everyone, everywhere. Together, we are taking the much-needed action required for better insurance penetration in the country and ensuring that people perceive insurance in the right light for a safer, better future for themselves and their families. Also, aiding this initiative will be our Health Correspondents, who will help spread health insurance awareness, ensure its last mile reach and help insure the uninsured. Zidd Aage Badhne Ki.”

Chitti Babu, Chief Innovation Officer, Star Health, said, “At Star Health, we believe that today, health insurance has become a basic necessity along with food, water and shelter. This belief drives our endeavor to insure every individual, regardless of their location, enabling them to gain access to quality healthcare irrespective of their societal strata. Our collaboration with PayNearby, given their strong presence and deep networks in rural and non-metro regions of India, is another step in this direction, enabling us to offer bite-sized health insurance covers to all. This partnership will play a crucial role in insuring the under-served population in Bharat.”

For more information, please visit www.paynearby.in

Assisted e-commerce (meta commerce) grows by 91% in semi urban and rural counters

PayNearby releases detailed analysis on ‘assisted digital transactions’ FY23, in its third Pan-India report titled – Retail-O-Nomics

• Insurance policy purchase and insurance premium collection saw a massive 150% growth in transaction and 140% in customer adoption
• PAN Card issuance services have seen a steep growth of 437%
• During PM-Kisan Samman Nidhi fund release, cash withdrawal on an average grew by 36% as compared to the rest of the year
• Amongst credit products, personal loan and gold loan, saw good adoption at the last mile, crossing seven-figure mark in disbursements within few months of launch
• Bill payments service at local stores witnessed an increase of 74% in value and 39% in volume

Mumbai, 19th December, 2023: PayNearby, India’s largest branchless banking and digital network, today released data report ‘Retail-O-Nomics’. It highlights Unified Payments Interface (UPI) transactions saw a 118% and 106% increase in volume and value respectively at semi-urban and rural stores, representing the growing adoption of UPI beyond Tier II regions in the country. In addition, mPOS (Mobile Point of Sale) acceptance too witnessed a growth of 5% in value, emphasising the increasing adoption of cutting-edge technology among small merchants.

Insurance policy purchases and premium collections surged by 150% in transaction volume and 140% in new customer adoption, underlining the role of digital retail stores in addressing the challenges of insurance penetration in Bharat, and their gradual evolution into multi-utility centres for citizens.

The insights are part of the third edition of the Pan-India report titled ‘Retail-O-Nomics’ released by PayNearby. The report has been prepared based on transactions conducted across a million-plus PayNearby retail touchpoints, consisting of kirana stores, mobile recharge stores, medical shops, customer service points (CSPs), travel agents, etc. throughout the country. The findings compare business data from January to November 2023 with the same period in the year 2022.

As per the report, the nationwide new registered retailer count increased by 9%, underscoring the eagerness of the retail community to participate in India’s growth story by facilitating assisted financial and digital transactions at nearby stores. Overall, transactions grew by 10% both in volume and value. The transactions include not only banking and financial services, but also digital services like utility payment, cash collection, credit, insurance, assisted commerce and more, indicating a significant behavioral shift among consumers in these regions towards assisted digital methods for their banking and lifestyle needs, contributing to their integration into the formal economy.

In 2023, Micro ATM and AePS cash withdrawals, pivotal for rural and semi-urban digital counters, fell short of expected growth. However, MATM device demand remained robust, marking a 17% surge in purchases compared to last year. Although transaction volume decreased, the average cash withdrawal per transaction grew slightly from ₹2595 in 2022 to ₹2624 in 2023. Notably, AePS withdrawals surged consistently by 30-40% during DBT releases, notably during PM Kisan Yojana credits, as compared with the rest of the year.

The report also highlights a staggering 65% surge in cash collection at retail counters, reflecting soaring demand for credit and financial solutions nationwide. With an average monthly collection of ₹1,700 crores, the company witnessed heightened demand across various processes, including a remarkable 25% surge in EMI collections for NBFCs, MFIs, and Small Finance Banks. This uptick in EMI collections signifies a rising awareness and interest in credit and financial offerings at the grassroots level. Additionally, positive growth in subscriptions for OTTs, online education, and online gaming underlines a latent demand for digital services, indicating Bharat’s growing affinity towards digital products.

Amongst credit products, business, personal, and gold loans gained rapid traction, surpassing a seven-figure mark in loan disbursement. Impressively, 21% of applicants were new to credit (NTC), reflecting a growing trend. The average age of 28-30 highlights a dynamic, youthful entrepreneurial base. These loans, catering to SMEs’ working capital and individual lifestyle upgrades, underscore the urgent need for scalable, affordable credit solutions for India’s unhindered progress.

The assisted e-commerce segment, meta-commerce emerged as another significant highlight this year, with a network of ~40,000 retailers actively engaged in providing e-commerce services.  Particularly noteworthy is the substantial traction of the Branded Shop category, featuring top brands across consumer electronics, mobile accessories, kitchen appliances and more. Popular categories in the ecommerce portfolio include grocery, grooming, toys, and healthcare products. The average ticket size in the branded shop category was ₹3,184, while for the rest of the ecommerce portfolio, it was ₹1,586.

FY 2023 saw a surge in re-banking at retail counters, opening 175,000 new current and savings accounts. The report highlights a robust 202% growth in account balances compared to last year.

Commenting on the report findings, Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, said, “Embracing rural India’s pulse, Retail-O-Nomics depicts a narrative where hinterlands not only keep pace with urban areas but actively integrate into the formal economy. The surge in GTV results from not only the growth in traditional banking and ATM services but also the adoption of products like UPI and MPOS, NTC credit solutions, insurance, e-commerce and more. Despite this, there’s still a huge untapped market needing the right product, pricing, and distribution for easier adoption. This report aims to catalyse dialogues and implement measures for widespread financial and digital service accessibility, especially in Tier II and beyond. Committed to this vision, we empower retailers and consumers through user-friendly solutions, focusing on technology simplification and democratization via our Distribution-as-a-Service network.

A case in point is the introduction of assisted ecommerce in our network. With this service, rural aspirational customers are getting the choicest products at a nearby store, retailers are seeing enhanced income, and e-commerce partners are not only reaching new markets, but seeing reduced returns rates, optimizing overall business costs. In fact, return rates through meta commerce are nearly 1/3^rd of the standard return rate witnessed by B2C ecommerce platforms, highlighting the significant role played by human interventions at retail counters in the overall consumer experience.”

Bill payments spiked by 74% in value and 39% in volume, while mobile recharge grew by 3%. Assisted Income Tax Return (ITR) services rose by 4%. Travel bookings maintained an 8% growth in flights and 6% in rail bookings during festivals. New PAN Card issuance and corrections skyrocketed by 437%. Notably, 41% of banking transactions occurred from 3.00 pm to 9.00 pm, highlighting retail outlets’ crucial role in meeting banking and digital needs, especially within the PayNearby network.

For more information, please visit: www.paynearby.in

Human intelligence in terms of retailer assist at last mile optimizing purchase process

Mumbai, 09th October, 2023: PayNearby, India’s largest branchless banking and digital network, announced that its meta-commerce platform – PayNearby Mall, has registered exceptionally low return rates, helping its partner brands optimise costs. The platform which enables easy availability of goods and services in an assisted mode at the last mile has generated a return rate of ~10% when the average rate typically ranges between 20-30%.

In the last six months, over ~25,000+ retailers have enthusiastically embraced the platform. Interestingly, when compared to the urban and metro areas, where e-commerce penetration is high, PayNearby Mall registered a 46% GTV in rural regions, closely tailed by semi-urban areas, with 45%. This shift in consumer behaviour suggests that rural India is increasingly embracing the e-commerce revolution and is as aspirational as its urban counterpart. The most sought-after categories include grocery at 35%, followed by mobile and accessories and cloths at 14% and 9% respectively.

In the e-commerce industry, returns frequently arise from prevalent issues such as impulsive purchases, inaccurate item selection, or unmet customer expectations. However, a substantial number of product returns can significantly impact the financial performance of e-commerce operations. Each returned item incurs expenses associated with processing, restocking, and potential damages, increasing operational costs and logistical complexities. It erodes the profit margins significantly. PayNearby Mall’s innovative assisted meta-commerce model, which blends the convenience of digital commerce with the personal touch of PayNearby retailers, allows partner brands to optimise the costs associated with processing returns.

In areas where e-commerce adoption is low, PayNearby Mall allows partners to bring their products at neighbourhood stores. Customers can walk into these nearby stores and with the help of the local retailer access products on an aggregated e-platform of 100+ partner sites, and shop easily for the products they need. The personalised approach of this unique model helps customers make the right decision and buy the right products, reducing the likelihood of returns due to impulsive buying or incorrect item selection. It results in enhanced cost efficiency for e-commerce players, preserving profit margins and contributing to their overall financial sustainability.

Speaking on the development, Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, said, “E-commerce has transformed how people shop. But with it comes the challenge of returns. Studies show that 54% of buyers consider free returns as one of the biggest factors influencing their buying decisions. However, high return rates often impact the financials, customer satisfaction, and overall operational efficiency of businesses. PayNearby Mall’s low return rate underscores the effectiveness of our approach. On one hand, our meta-commerce model empowers rural consumers by bringing the products they want within their reach. On the other hand, with our retailers offering the human touch in helping customers make informed decisions, our e-commerce partners are seeing reduced returns rates, optimised costs and increased revenue.”

The partnership aims to serve more than 6,00,000 customers with banking and beyond services

• Make rural Business Correspondents and women catalysts of change in their communities by upskilling them as financial and digital counters
• Onboard 15,000+ women business correspondents and provide them with sustainable self-employment
• Upskill business correspondents to generate additional income beyond their regular cash-in and cash-out services, and make them viable change agents for long term impact

Mumbai, 04 September 2023: India’s leading branchless banking and digital network, PayNearby, today announced that it has collaborated with Grameen Foundation for Social Impact (GFSI), a leading non-profit organisation dedicated to uplifting underserved communities, to upskill 150,000 business correspondents (BCs) across Indian hinterland and upgrade them to provide digital and financial services beyond cash-in/cash-out to the underserved and tech-shy last mile population. This will strengthen rural BC counters with long term viable business solutions and make them sustainable change agents at the grass root level. The partnership will also work towards providing employment opportunities to the women and youth of Bharat.

As part of this collaboration, PayNearby and Grameen Foundation for Social Impact will launch a pan-India scale-up project titled ‘Scaling Agent Viability and Quality in India’ supported by the Bill and Melinda Gates Foundation (BMGF). The initiative will be completed over the span of next two years. It marks a significant step towards amplifying the impact of BCs’ in enhancing financial accessibility across the country, by expanding their financial product offerings beyond traditional cash-in and cash-out services. Expanded product suite will increase customer retention and empower these correspondents to generate supplementary income streams.

This collaboration between PayNearby and GFSI is not only a strategic step in expanding financial accessibility but also a crucial initiative for empowering women within the financial sector. This initiative places a strong emphasis on skill enhancement among BCs and also gender sensitivity. By offering the necessary skills, knowledge, and support, this initiative will foster increased opportunities for both rural BC counters and women’s professional growth and financial empowerment. The goal is to enlist 15,000 female BC agents, thereby promoting gender inclusivity within this sector.

Under this initiative, GFSI will leverage PayNearby’s Distribution-as-a-Service network and expertise to streamline operations and enable BCs to offer a diverse range of sachetised and tailored digital and financial solutions across domains such as, commerce, education, entertainment, credit management, insurance and more. In addition to right capacity building, PayNearby will invest in awareness and upskilling of this network to seamlessly enable multiple digital and financial services through local counters. BCs will be made aware of the financial advantage of a diversified product portfolio, and how more loyalty and value per customer can be derived through that.

Speaking on the development, Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, said, “In the dynamic landscape of Bharat, achieving mass transformation necessitates mass mobilisation, and the formidable BC network is ideally positioned to embrace this challenge. BCs have been playing a crucial role in bridging the financial and digital gap at the last mile.

We are extremely honoured to work with Grameen Foundation for Social Impact to upskill BC network and make them viable multi-service counters, beyond cash-in/cash-out services. This is critical not only for the long-term financial viability of rural BC counters, but also the overall growth of communities at the grass root level. A diversified product portfolio will not only drive more value per footfall, but also enhance customer loyalty and retention.”

Alok Kumar Jha, Chief Strategic Initiatives Officer, PayNearby further adds, “We are extremely honoured to be a facilitator for empowerment of women BCs, who are the drivers of rural progress. This collaboration echoes our commitment towards our Sashakt Naari, Sashakt Samaaj, Sashakt Desh mission. Through this, we aim to not only provide sustainable self-employment to Women BC Sakhis, but also ensure more women from Bharat’s hinterland are brought into the formal financial fold through them, thus bridging the gender gap at the last mile.”

Arindam Dasgupta, Director – Innovations In Digital Finance, Grameen Foundation for Social Impact, said, “With the support of the Bill and Melinda Gates Foundation (BMGF), we are delighted to embark on this impactful collaboration with PayNearby. Our shared vision to drive financial inclusion and enhance women’s empowerment is at the heart of this partnership. By leveraging our combined strengths, we aim to drive meaningful change by enhancing agent quality, expanding product accessibility, and fostering a more inclusive financial landscape. Together, we are charting a path toward a brighter and more empowered future for all.

The collaboration is underpinned by a shared commitment to enhance women’s capacity to shape and thrive in a more connected business environment, demonstrating the benefits of inclusive development, women’s economic empowerment, and fostering participation from all key stakeholders.”