New Delhi, June 23 -- Digital adoption among India's micro, small and medium enterprises (MSMEs) is accelerating, with UPI and Aadhaar-enabled banking accounting for a majority of transactions in semi-urban and rural retail outlets, according to PayNearby's MSME Digital Index Report 2026.

The report found that 61 percent of transactions at last-mile MSME retail stores are now conducted through UPI and Aadhaar-based banking systems, reflecting a steady shift towards formal digital payment channels.

Rising Confidence in Digital Tools Among Small Businesses

It added that digital confidence among small businesses has improved significantly, with 87 percent of respondents stating they feel more confident using digital tools compared to the ...