Young merchants owning SME businesses in auto accessories, building fittings, medical, private cabs, and food and beverage sectors form the high potential segment, indiainfoline.com reports.
10% of merchants are inclined to use e-payments (5 million of the total 59.16 million micro merchants). Merchants cited potential increase in revenue (46%) as a strong driver for trials, followed by increased business efficiency (31%) and enhanced shop image (30%), according to the MasterCard Micro Merchant Market Sizing & Profiling Report, the source cites.
The study estimates the potential market size to be more than INR 230 billion (USD 3.44 billion) weekly. 33% of merchants admitting the need for presence of self or family member at the store to avoid pilferage. 29% also agreed that they face operational efficiency issues related to cash expenses and profits daily and effort required to keep record of transactions. 24% admit to having lost customers due to inability to accept card payments.
The report finds that merchants who are familiar with e-payment formats showed a higher willingness to consider adopting them for business (70%), compared to merchants who are unaware of e-payment methods (8%) or are aware but have never used it (14%).
MasterCard, CAIT and HDFC joined in 2015 to launch a training programme ‘Master Your Card’ to promote financial awareness and literacy amongst Indian traders. Since 2015, more than 50,000 traders have participated in trainings. Additionally, e-Lala has been launched to support brick-and-mortar shops to embrace ecommerce as an additional platform to generate more business.
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