Unlocking Financial Inclusion: Understanding MSME Attitudes Toward Commercial Cards
Ayvole helped a global payments firm understand MSME financial behavior and commercial card attitudes in India, guiding strategy for inclusive adoption.
Overview
In India’s rapidly evolving digital economy, micro and SOHO enterprises represent a vast yet underserved segment. This study explored their financial behaviors, digital adoption, and attitudes toward commercial cards, offering a nuanced view of their business needs and payment preferences.
Context
The client—a global leader in digital payment services—sought to expand commercial card adoption among India’s micro and SOHO enterprises. With limited financial access and low penetration of formal credit tools, understanding this segment was critical to shaping a relevant and inclusive strategy, especially in the wake of COVID-19 disruptions.
Our Approach
Ayvole conducted in-depth primary research through interviews with MSME owners and proprietors across manufacturing, professional services, trade, and other sectors. The study captured detailed insights into their financial practices, digital readiness, and perceptions of commercial cards.
Key Insights
- Business Outlook & Strategy: MSMEs showed resilience and adaptability, with varying degrees of digital transformation.
- Financial Needs & Credit Access: Many enterprises faced challenges accessing formal credit, relying on informal channels.
- Commercial Card Perceptions: Awareness was low, but interest was high when benefits were clearly communicated.
- COVID-19 Impact: The pandemic accelerated digital adoption but also exposed gaps in financial infrastructure.
- Segment-Specific Behavior: Needs and attitudes varied significantly across sectors, informing targeted outreach strategies.