India MSME Payment Risk Management Solution Market: Current Analysis and Forecast (2024-2032)
Emphasis on Solution Type (Payment Tracking Solutions, Credit Risk Assessment Tools, Fraud Detection & Prevention, Debt Collection Solutions, Insurance & guarantees, Others); By End User (Manufacturing, B2B Retail & Ecommerce, Construction & Infrastructure, Professional Services, Textile & Apparel, Logistics & Transportation); and Regions (North India, East India, West India, and South India)
India MSME Payment Risk Management Solution Market Size & Forecast
The India MSME Payment Risk Management Solution market was valued at USD 253.46 million in 2023 and is expected to grow at a strong CAGR of around 12.21% during the forecast period (2024-2032) owing to rising demand for tacking payment frauds and delays among the MSME sector.
India MSME Payment Risk Management Solution Market Analysis
The MSME Payment Risk Management Solutions refers to the sharing of technology that provides ease of payment solutions and reduces the chances of deferred payments. Micro Small and Medium Enterprises hold a sizable share in the GDP of the country. These enterprises apart from their high relevance often face difficulty in receiving payments and identifying certain fraudulent customers due to which the requirement for the companies offering various security and payment tracking services has become crucial. In order to address these issues certain centralized systems, blacklist systems, blockchain-based smart contracts, etc., are being implemented which would alleviate the cases of fraudulent activities and help MSMEs to operate smoothly.
The India MSME Payment Risk Management Solution market was valued at USD 253.46 million in 2023 and is expected to grow at a strong CAGR of around 12.21% during the forecast period (2024-2032). One of the key factors that has proven to be conducive to the development of the market growth is the higher number of fraudulent payments among the MSME vendors. As the number of MSMEs in the country is increasing the need for robust centralized systems to identify the defaulters and improve the credit repayments by the customers.
Additionally, the requirement for various types of services such as payment tracking solutions, credit risk assessment tools, fraud detection and prevention software, debt collection solutions, etc., by the MSMEs the demand for payment risk management solutions has increased.
According to the National Sample Survey, there were 633.9 lakh MSMEs in India in December 2022. Of this 630.5 lakh businesses qualify as micro businesses, 3.3 lakh as small businesses, and 0.05 lakh qualify as medium businesses.
Additionally, with the rising government support in terms of regulatory and monetary assistance, the MSMEs in the country would exponentially grow in the coming years further promoting the need for payment risk management solutions. Furthermore, with the increasing number of MSMEs in the country as well as the increase in the sheer number of payments in the country through MSMEs the demand for reducing delayed payments both intentional and unintentional category would require robust solutions to reduce the payment-related issues.
Considering the changes the demand for MSME payment risk management solutions would further increase during the forecasted year i.e., 2024-2032.
India MSME Payment Risk Management Solution Market Trends
This section discusses the key market trends that are influencing the various segments of the India MSME Payment Risk Management Solution Market as identified by our team of research experts.
AI-Powered Risk Assessment
There is a rising demand for AI-powered risk assessment for payment-related issues for MSMEs. As AI Powered Risk Assessment Solutions mitigates defaults, and payment delays and improves financial stability the demand for such systems among the MSMEs has increased significantly. Various services such as data aggregation and analysis, predictive analytics for payment risk, custom risk profiles, automated payment solutions, fraud detection and prevention, integration with the credit bureau, buyer blacklisting, etc., are some of the key features that the AI-Powered risk assessment software provide to the users. As with the high data availability and integration of AI with the existing payment and credit bureau infrastructure the implantation of a proactive and predictive model comes into the picture further ensuring long-term financial stability for the MSMEs.
North India is Expected to Hold Major Market Share During Forecast Period
North India region has held a sizable market share in India MSME Payment Risk Management Solution Market. With the increasing number of MSMEs present in the region as well as a high number of investments of the central as well as the state governments towards offering loans to establish micro, small, and medium enterprises in the region the demand for payment-related solutions has extensively grown. Additionally, the region has also experienced a higher demand for e-commerce and manufacturing-related MSME payment solutions. Many of the leading states as Uttar Pradesh, Delhi NCR region, Haryana, etc., have planned to double their GDP in the next five to six years of which the center of focus is the expansion of MSME industries especially in the manufacturing, e-commerce, and apparel industry.
Considering these shifts the demand for India MSME Payment Risk Management Solutions in the North India region would notably grow. Other regions as West India and South India have also shown significant growth in recent years with the MSME expansion and requirement for payment-related services.
India MSME Payment Risk Management Solution Industry Overview
The India MSME Payment Risk Management Solution market is competitive and fragmented, with the presence of several market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are CredAble, LexisNexis Risk Solution, Neural Technologies Limited, SAS Institute Inc., Finsta, CRIF High Mark, Kogta Financial, Altradius, Analog Legalhub Technology Solution Pvt Ltd. (Credgenics), and Beveron.com.
India MSME Payment Risk Management Solution Market News
The government of India launched MSME Samadhan in 2017 to resolve the payment settlement for Micro small and medium-sized enterprises. The MSMEs as well as the CEO of public sector enterprises and the Secretary of the Ministries concerned will also be able to monitor the cases of delayed payment under their jurisdiction and issue necessary instructions to resolve the issues.
India MSME Payment Risk Management Solution Market Report Coverage
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The India MSME Payment Risk Management Solution market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs; hence, feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the India MSME Payment Risk Management Solution Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the India MSME Payment Risk Management Solution market were the three major steps undertaken to create and analyze the adoption of India MSME Payment Risk Management Solution in major regions in India. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted with industry experts across the value chain of the India MSME Payment Risk Management Solution market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the India MSME Payment Risk Management Solution market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the India MSME Payment Risk Management Solution market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as by solution type and by end user. Further regional/country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the India MSME Payment Risk Management Solution market. Further, we conducted factor analysis using dependent and independent variables such as by solution type and by end user in the India MSME Payment Risk Management Solution market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the India MSME Payment Risk Management Solution market sector across the country.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the India MSME Payment Risk Management Solution market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques, i.e., the top-down/bottom-up approach, were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets in India. The research methodology adopted to estimate the market size encompasses:
The industry’s market size, in terms of revenue (USD) and the adoption rate of the India MSME Payment Risk Management Solution market across the major markets domestically
All percentage shares, splits, and breakdowns of market segments and sub-segments
Key players in the India MSME Payment Risk Management Solution market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs), including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the India MSME Payment Risk Management Solution market. Data was split into several segments and sub-segments after studying various parameters and trends by solution type and by end user in the India MSME Payment Risk Management Solution market.
The main objective of the India MSME Payment Risk Management Solution Market Study
The current & future market trends of the India MSME Payment Risk Management Solution market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the India MSME Payment Risk Management Solution market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
- Segments in the study include areas by solution type and by end user.
- Define and analyze the regulatory framework for the India MSME Payment Risk Management Solution
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the India MSME Payment Risk Management Solution market for the major regions.
- Major regions studied in the report include North India, East India, West India, South India
- Company profiles of the India MSME Payment Risk Management Solution market and the growth strategies adopted by the market players to sustain in the fast-growing market.
- Deep dive regional level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is the current market size and growth potential of the India MSME Payment Risk Management Solution market?
Q2: What are the driving factors for the growth of the India MSME Payment Risk Management Solution market?
Q3: Which segment has the largest share of the India MSME Payment Risk Management Solution market by Solution Type?
Q4: Which region will dominate the India MSME Payment Risk Management Solution market?
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