Payments between entrepreneurs and suppliers, workers, customers, and governments may now be made more quickly and at a lower cost thanks to digital payments. Digital financial systems make it simpler for entrepreneurs to get finance to establish and develop their firms, as well as support formal entrepreneurship by making regulatory and tax duties easier to comply with. Governments in developing countries encourage the use of digital financial services by investing in the required infrastructure, cooperating with private companies to provide training for potential users, and ensuring that adequate security and regulatory measures are in place.

By lowering operational expenses and making it easier to manage trade contracts, delivery records, and accounts receivables, switching from cash to digital payments may boost an entrepreneur's profitability. Making and receiving digital payments may enhance an entrepreneur's connections with clients, vendors, and financial institutions, as well as promote their participation in e-commerce.

Smaller businesses, for example, may analyze sales by product type and day of the week and use the analysis to effectively manage inventories. Entrepreneurs may make more frequent digital payments to vendors, decreasing the number of days on extended trade credit and saving working capital costs (by reducing accumulated interest on supplier loans). Digital financial transfers can make record-keeping cheaper and enhance transparency by maintaining a traceable electronic trail that can help prevent document-related fraud. Entrepreneurs who accept digital payments have less cash on hand, which means they are less likely to be defrauded.


Digital applications such as e-filing and e-payment of licensing fees, registration fees, income taxes, and property taxes can minimize the cost of tax compliance as well as travel time and face-to-face encounters with tax officials for larger-scale enterprises. This can also assist governments to establish a greater revenue base by encouraging the formalization of firms.


Despite increasing interest, there is still a shortage of data on digital payment flows available to economists and practitioners, in particular assessments of merchant payments. Pay10 is creating new services and products for small businesses, especially in rural areas. Pay10 aims to create user-friendly financial products and provide novel methods of assessing new business creditworthiness.