You may ask, why is retail automation important to MSMEs in India? In the area of Utility Billing & POS Billing, the answer is two-fold. One has to do with boosting national progress and the other has to do with digitising our currency. Let’s start with the latter, in the previous financial year 2017-18, India spent about 636 crores only on printing the money. So, a digitalised economy will allow for easier carrying, spending & money transfers. Also, it allows for that money which would otherwise be spent on printing, to be used to boost the economy.
Coming to the second reason, the MSME contributes to 33.4% of India’s manufacturing output. It employs about 106 million people, which is about 40% of the country’s workforce. This is the second largest in the world only after China. Today, with the advent of e-commerce, 98% of technology enabled SMEs participate in the export economy of India. These SMEs who adopt the internet for their business activities, report a 51% increase in revenue and 49% increase in their profit margins with a 7% better scope to offer customer support. So how is this possible? Through retail automation, using a range of utility billing software like ONGO billing++ software solutions. India Transact offers MSMEs Point-of-Sale solutions with ONGO billing++. This helps businesses maintain their cash inventory via a software which can be downloaded from the ONGO billing website.
To assist MSMEs in their business is to also lend a hand in boosting our economy itself. This is because a seamless payment acceptance solution could provide MSMEs the edge they need to do more business. In any case the kind of growth we are expecting to see in this industry is tremendous with SMEs expected to reach USD 80 billion by 2020. So, as MSMEs move their business on a digital platform, retail automation will only be more critical for their growth and ours as a nation. Digital payments also offer merchants security concerning whom they are taking money from. This advantage is coupled the convenience of automatically generated accounts to assist them with their cash inventory.
Since we are looking forward to Digital Payment gateways leading MSMEs into a glorious future. It is important the kind of growth rate Digital Payment gateways are going to exhibit themselves. The total transaction value is expected to rise over a 20% CAGR from 2019 to 2023, resulting in a total amount of US$ 134,588 by 2023. These figures show the potential digital utility billing software and POS billing software can offer MSMEs by way of digital payment solution. These could be both, in store at the point of sale or through ecommerce portals. Here payments are ideally made online on the MSME’s site or at the door via Card on Delivery.
So, we see that this is the digital edge of retail automation. Offering MSME merchants digital tools like our utility billing software and POS billing software, which is the absolute need of the hour. With the given target of USD 80 billion by 2020, it will be via digital payment gateways like ONGO billing++ software solution that SMEs will not just meet but supersede these targets.