In the last couple of years, digital finance in India has made tremendous progress and has led to the emergence of many solutions for the small business community. From collateral-free loans to AI-based credit score to UPI, digital finance is empowering MSMEs while enabling them to go global. In an interview with ET Rise, Nath Parameshwaran, Senior Director, Corporate Affairs, PayPal India, discussed how digital finance has transformed the MSME sector in India.
Thanks to digitisation, MSMEs can now look beyond domestic borders and reach a global consumer base. They are more willing than ever to invest in technology to provide an improved customer experience. Going forward, data security and customer protection considerations will play a critical role in determining the extent of fintech adoption. Despite the convinience offered by digital, in order to sustain adoption, it is critical to mitigate risks and make payments safe and seamless.