Pandemic-induced development in e-commerce adoption and digital payments, which has enabled seamless cross-border trade, represents a $526 billion chance in exports for compact firms to advantage, according to a PayPal study. Of this, almost 60 per cent of exported things are goods which represents a $313 billion marketplace for India’s regional artisans of tribal solutions, handicrafts, or compact exporters of gems & jewellery. Among the greatest performing sectors are gems & jewellery, prepared-made garments, leather solutions, electronics, and handicrafts, clocking in $60 billion – almost 19 per cent of the total goods exports.
“This (digital adoption) presents a global opportunity, especially for small businesses and entrepreneurs who have reworked their business models from offline to online… The advantage to leverage the global B2C demand is endless as adoption of online shopping has opened the floodgates to purchase custom-made goods from anywhere in the world,” Paypal stated in its Cross Border Trade report 2021. PayPal had stopped its payment operations in India on April 1 to alternatively focus on their cross-border trades and exports for regional firms.
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Non-small business-to-small business (B2B) exports account for 22 per cent (worth $70 billion) of the total goods exports marketplace. Gems & jewellery had the highest export marketplace share worth $34 billion followed by $16 billion by prepared-made garments, $5 billion by leather solutions, electronics’ $3 billion, and handicrafts’ $2 billion.
In May this year, PayPal had introduced an automated method to get the month-to-month Foreign Inward Remittance Advice (FIRA) for MSME exporters and freelancers. At a zero price, PayPal merchants can download their month-to-month digital FIRA issued by the bank by logging into their PayPal account. The totally automated method does not need sellers to spot manual and person requests. Foreign Inward Remittance Advice is a document that acts as proof for all inward remittances and payments received from abroad.
PayPal had also earlier this year partnered with digital lending platform FlexiLoans to provide collateral-absolutely free small business loans to freelancers, girls entrepreneurs, sole proprietors, and MSME for small business expansion, getting stock, inventory, and other small business-associated expenditures. The tie-up enabled borrowers to safe term loans from Rs 50,000 up to Rs 1 crore for a tenure ranging from six to 36 months.