AUGUST 20209Challenges & Opportunities for Merchants and MSMEsDigital payment platforms; both B2C and B2B were witnessing an up-ward growth even before COVID-19 hit the nation. According to a Re-serve Bank of India (RBI) report, digital transac-tions in India regis-tered 19.5 per cent in value in 2018-19. This growth was primar-ily driven by MSMEs and merchants lev-eraging cutting-edge technology to cater to the specific require-ments of each cus-tomer. COVID-19 has led to a public health and economic crisis of epic proportions. Businesses across industries and sectors are experiencing a first-hand impact of the virus outbreak due to the ongo-ing nationwide lockdown. They are struggling with a manpower shortage, supply chain issues, unantici-pated demand, and lack of cash flow. Moreover, uncer-tainty prevails in terms of what will happen once the lockdown is over. Even though the lockdown is lifted, a relapse of the COVID-19 out-break may occur if necessary preventive steps are not taken. Tackling situations in advance can help mer-chants and MSMEs stay prepared for growth and rebuilding sooner than they can expect. Technologies Driving Business Continuity in the Current SituationRetailers and e-commerce businesses at present are persistently encouraging their customers to make payments through digital channels. They are looking for consumer-centric innovation in digital payments ­ be it in terms of service, security, and user experience (UX). With a sudden surge in usage, many digital payment providers are bringing into play contingency plans to handle high volumes of payment. They are leveraging advanced technologies like artificial intelligence, machine learning, and IoT to forecast the demand, manage customer queries, and help the merchants in providing a frictionless buying experience for their customers. These technologies are enabling easy access to credit, multiple layers of real-time data to smoothen supply chain disruptions, and automation that can drive the MSMEs to bounce back and thrive again once the crisis normalizes.The Way ForwardDigital payment platforms like eWallets, UPI-based apps, and net banking have seen a sharp jump in the number of users following the coronavirus outbreak. But considering that the society operates on high levels of trust, these times of crisis mark the perfect opportunity for businesses and merchants to create a pay-later or credit line system and provide maximum value to people. By allowing the customers the flexibility to make instant payments on every transaction, businesses can reach new consumers, increase conversions, and maintain continuity despite being caught off-guard by the Novel Coronavirus crisis. Retailers and e-commerce businesses at present are persistently encouraging their customers to make payments through digital channels.
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