UPI and Aadhaar banking now drive 61% of MSME retail transactions; AI tools reach 71% of kirana stores
PayNearby's MSME Digital Index 2026, surveying 10,000 retailers, finds digital rails dominate semi-urban and rural store transactions, with cash share down to 37%. 80% of retailers report higher digital payment volumes, while 71% of last-mile merchants have adopted AI tools to streamline operations.
What happened
PayNearby's MSME Digital Index 2026 finds UPI and Aadhaar banking drive 61% of transactions at semi-urban and rural MSME retail stores, while 71% of kirana and
Key facts
- 61% UPI+Aadhaar transaction share
- 71% AI tool adoption
- 80% increased digital payments
- 37% cash share
- 10,000 retailers surveyed
Why this matters
Scout acquisition targets among AI tooling and Aadhaar-banking enablers that have already penetrated the 71% adoption cohort, before incumbents consolidate the long tail.