Covid-19 Accelerates Adoption of Digital Payment for MSMEs


In response to the pandemic, small businesses continue to move their operations online as revealed through the findings of the second edition of the MSME survey by Bluehost, a top-rated website hosting service provider that is recommended by

The adoption of digital payments has been the most notable among customers of MSMEs during the last 1 year of Covid-19. A majority of the payments (72%) happen through digital mode today as compared to cash (28%).

MSMEs have embraced the use of digital tools to not only keep the lights on during the pandemic, but to also future proof their business. 80% of MSMEs surveyed that had a domain name have a business website out of which 19% started a website after the pandemic. The top reasons cited for having a professional website are to present a professional front (63%), promote their brand (62%), and acquire new customers (55%). A majority of the MSMEs surveyed claimed to have created a website on their own (66%), while the remaining (34%) have outsourced it to a web agency / freelancer. However, a majority (58%) of those who took the DIY (Do-It-Yourself) approach to setting up their website say that they will still need some guidance to set up their website.


Digital modes of doing business are now acknowledged by more than half of MSMEs (60%) as being more successful avenues to conduct business and interact with customers. MSMEs adopted video conferencing (36%), social chat (28%), and listed their business on online marketplaces (23%) to further boost online presence.

MSME’s surveyed say that they will continue to invest in digital tools in 2021 to grow their business. A majority of MSMEs plan to invest in social media marketing (55%), Search Engine Optimization (51%), and custom Apps (47%).

Despite the uncertainty and challenges of Covid-19, MSMEs continue to showcase resilience. While 36% of all MSMEs surveyed say they are doing fine (17% of them doing well), 64% cite that their businesses are not doing as well as 12 months ago. This was owing primarily to financial constraints (58%). Despite this, 58% of MSMEs are optimistic of recovery and are confident of surviving the impact of the Covid-19 second wave. It’s no wonder that MSMEs have earned the tag of being the backbone of the economy.

“Many small businesses have experienced an accelerated digital transformation this past year, and they are now exposed to an array of tools that can help them grow and promote their businesses further. The use of digital technologies such as websites, digital payments and e-commerce have helped small businesses cope with social distancing measures and ensure business continuity”, said Manish Dalal, Managing Director of Bluehost India. “Bluehost remains committed to helping provide small businesses the digital presence solutions required to meet the needs of the evolving consumer in the digital world. Bluehost’s platform makes it easy for anyone to get online with WordPress and develop a professional-looking website as well as online e-commerce store”.

Survey Methodology

To understand the digital trends among MSME’s during Covid-19, Bluehost conducted a survey over the first 2 weeks of June 2021 with 400 MSMEs in the segments of retail, educational services, technology services, independent bloggers, consultant, advertising & marketing, travel and finance.

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