– By Rishi Chhabra
The Indian economy is experiencing a seismic shift, driven by a vibrant MSME sector that’s playing a key role in propelling the nation towards an exports-oriented future. MSMEs play a major role in this transformation, contributing over 29% to national GDP and nearly half of India’s exports. With India’s G20 presidency showcasing the country’s economic potential and attracting investments, the game changer for MSMEs lies in their capacity to access global markets. For businesses looking to venture into international trade, ensuring secure and efficient cross-border payments is crucial. Traditional payment methods often come with drawbacks such as slow processing times, hefty transaction fees, and the risk of fraud, which can impede trade. Secure and seamless digital payments enable businesses to expand sales channels, build trust with international buyers, and ensure secure cross border transactions.
Here are insights on how digital payments can benefit small businesses and entrepreneurs by providing a secure platform for conducting B2B transactions on a global scale.
Expanding reach with secure payments
Per a Visa global survey on 2024 payment trends, nearly four out of five surveyed small and medium businesses (79%) consider selling across borders critical for future growth. By offering a seamless and secure purchasing experience, merchants can attract customers the world over. Leveraging globally recognised and trusted payment methods simplifies cross-border transactions, allowing small businesses to expand their market reach in a secure manner.
Combating fraud with cutting edge technology
In the digital age, fraud prevention is a key priority for businesses of any size. Digital payment methods offer advanced fraud detection systems powered by AI and machine learning, such as Visa Advanced Authorisation (VAA) which has proven highly effective in preventing fraudulent transactions globally. In 2022, Visa’s enterprise fraud and risk management platform Decision Manager prevented the equivalent of $22 billion in potential fraud worldwide using hundreds of detectors, including biometric and IP geolocation.For resource-constrained small businesses, these technologies offer an extra security layer without heavy lifting.
Optimising business process for efficiency and growth
Tech-savvy leaders in India are bringing about a change in the business landscape, prioritising intuitive digital payments for enhanced efficiency and growth. Their preferences are ushering in a “consumerisation” of business payments driven by interoperable systems and multi-capability platforms that streamline essential tasks like payments, lending, and invoice management, enabling businesses to operate more efficiently and save time.
Unlocking valuable data insights to increase customer’s lifetime value
Digital payments empower businesses by automating tracking, secure data storage, and providing valuable data insights for informed decision-making. This rich data stream enables entrepreneurs to make data-driven decisions, personalise customer experiences and build deeper relationships.By leveraging digital payments, businesses can cultivate loyalty, extend credit based on buyer behaviour, and leverage data insights to tailor offerings effectively. The robust data trail left by digital payments enables businesses to provide a personalised and enriched experience for buyers, fostering stronger loyalty and satisfaction in the B2B realm.
Compliance with confidence
Incorporating digital payment solutions helps MSMEs streamline financial operations, enhance transparency, and maintain accurate records effortlessly, ensuring compliance with regulatory requirements and industry standards. These platforms offer built-in compliance features, automated reporting tools, and fraud detection mechanisms, to simplify tracking mechanisms and ensure adherence to legal frameworks.
With advanced digital payment solutions, MSMEs are assured of robust security, streamlined processes, and real-time data insights to confidently navigate the global marketplace. With the right tools in hand, businesses can focus on creating exceptional products and services, while digital payments handle the complexities of international trade.
(Rishi Chhabra, Head of Merchant Sales and Acquiring at Visa, India and South Asia.)
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