Top reasons why mobile payment apps are helpful for small businesses in India

 

India is an agrarian country and a large share of its revenue is generated through agriculture. After that, small businesses are the second-largest providers of employment and are vital to the country’s economy. Businesses like grocery stores, medical stores, traders, confectioneries and bakeries, small-scale manufacturing units, etc all are accounted as small businesses.

Small businesses, unlike huge corporations, are owned independently by individuals. They need less capital to set up and function as compared to large-scale businesses. The workforce needed is also less and is flexible as per the will of the owner. This kind of setup leaves a large room of opportunities to be explored.

Dependency on cash –

Small businesses are knit closer to their consumers and most of their transactions are normally done in cash. However, this has gradually been changing at a moderate pace since demonetization in 2016 and now, the covid pandemic in 2020. Demonetization encouraged people in the country to move towards digital payments and online money transfers. This was one of the positive outcomes of demonetization that people started to accept and adapt to online bill payments.

Online bill payment apps –

The surge in the use of online bill payment apps was seen after the event of the demonetization of currency notes of higher denominations. Even though there was a sudden cash crunch in the market, people could carry out their day-to-day transactions easily using the bill payment app. It established the supremacy of online money transfer over cash payments.

Significant benefits of online bill payment apps & money transfer –

Online money transfer and bill payments have a number of benefits for the consumer as well as the business owner. 

They are enlisted below –

1) Using online bill payments apps can speed up your transactions and can let small businesses send and receive payments within a fraction of seconds. This completely eliminates the hassle of sharing invoices and then wait for a long time to receive payments.

2) With all information handy and payment statuses online, business owners do not have to invest time in follow-ups. They can very easily retrieve information of payments received and pending and act accordingly.

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3) Consumers these days cherish the option of paying online as this does not make them wait for bills or invoices and they can pay immediately without wasting time. Also, as the payment is done online, they also have proof of payment in the form of a soft copy of the receipt.

4) For small businesses, making available the facility to pay online for their customers also means that they are making it convenient for them and reducing the waiting time for paying. This in a way leads to customer satisfaction.

5) Bill payment apps are available for usage all year round, 24 x 7 regardless of holidays. This makes them even more useful and convenient for both, the business and its consumers.