By Pravin Sharma, Founder Getepay

The festive season in India is not just about lights and celebrations, it is also the busiest time for millions of small shops, kiranas, vendors, and artisans. These MSMEs form the backbone of the economy, contributing about 30 percent of GDP and employing a large share of the workforce. With rising consumer demand and rapid digital adoption, this festive season can be transformative. 

At Getepay, as we expand our role as an RBI licensed payment aggregator, we see how digital payments have become essential infrastructure for MSMEs to thrive. 

The MSME and Digital Payments Landscape in 2025 

UPI has become the lifeline of India’s digital economy. In August 2025, monthly transactions crossed 20 billion, with a value of nearly ₹25 lakh crore. Year on year growth was 34 percent in volume and 21 percent in value, while average daily transactions exceeded ₹90,000 crore. Since 2017, UPI transactions have risen from fewer than 100 crore annually to more than 18,000 crore in 2025. 

Consumer sentiment is equally strong. Surveys show that 92 percent of Indians plan to maintain or increase festive spending this year, with an average budget of about ₹16,500. Apparel, electronics, and mobile phones top shopping lists. E-commerce is projected to grow 20 to 25 percent in gross merchandise value, while physical retail also expects heavy footfalls. 

Credit demand from MSMEs is set to rise sharply. Lenders project a 35 to 40 percent surge in loan applications this festive season, with disbursements crossing ₹1,000 crore. More than 70 percent of this demand will come from tier two, three, and four towns. 

On the infrastructure side, over 4.7 crore digital touchpoints have been deployed in smaller cities and rural regions under the Payments Infrastructure Development Fund. In the past six years, India has processed more than 65,000 crore digital transactions worth ₹12,000 lakh crore, underscoring the irreversible shift to a digital economy. 

Why This Festive Season is Critical 

The numbers highlight why 2025 is so pivotal for MSMEs. Rising demand and digital adoption create a huge opportunity, but only for businesses that are ready. 

Cash flow and settlements are critical. MSMEs often struggle with working capital as they stock inventory and hire temporary staff. Faster settlements help them reinvest earnings during peak demand without depending solely on loans. 

Trust and credibility are equally important. Customers increasingly associate digital payment acceptance with professionalism and reliability. A QR code at the counter or multiple payment options at checkout improve convenience and signal that a business is modern and trustworthy. 

Operational efficiency is vital during the rush. Digital dashboards, reconciliation tools, and sales insights reduce errors and help MSMEs manage demand effectively. 

Finally, credit access is tied to digital behavior. A clean digital transaction history makes it easier for lenders to extend loans at better terms, which is especially important for businesses in smaller towns. 

How Getepay Supports MSMEs 

At Getepay, we are focused on empowering MSMEs with tools designed for this moment. 

  • Fast settlements so merchants receive funds quickly during peak sales. 
  • Simple onboarding and multi-modal payment acceptance across UPI, QR, wallets, and cards. 
  • Analytics and insights to track sales patterns and plan inventory effectively. 
  • Localized support in regional languages to help merchants adopt digital confidently.
     

What MSMEs and Customers Can Do 

For MSMEs, preparation is key. Test payment systems, train staff, ensure digital tools are ready, and focus on seamless customer experiences. 

For customers, choosing to buy from local shops sustains livelihoods and strengthens communities. 

For ecosystem players including fintechs, lenders, and regulators, the focus should be on making digital adoption easier, faster, and more affordable, especially in smaller towns where growth potential is highest. 

Conclusion 

The festive season in 2025 is not just about higher sales, it is about reshaping the future of MSMEs. With digital payments at the core, small shops can convert festive demand into sustainable growth. They can build credibility, access credit more easily, and expand their customer base beyond their locality. 

At Getepay, we believe that every kirana, vendor, and artisan deserves access to tools that empower them. When small shops thrive, India’s festive celebrations shine brighter. This year, let us make our festivals not only about joy and consumption, but also about inclusion and prosperity for the millions who make them possible.