Digital payments company PayPal and the Federation of Indian Export Organisations (FIEO) on Wednesday signed an agreement for the promotion of outbound shipments among small and medium enterprises (SMEs) leveraging the partners’ expertise and technology products.
As part of the agreement, PayPal will work with FIEO to educate SMEs on how to leverage global opportunities, help them receive money in a safe and timely manner with PayPal products like invoicing as well as inform them of global best practices.
“The memorandum of understanding (MoU) will help FIEO reach the cottage industries, artisans, house-wives, youths, micro, small and medium enterprises (MSMEs) and clusters, even in far-flung areas to develop their orientation towards exports,” FIEO director general and CEO Ajay Sahai said in New Delhi.
He added that these efforts will also encourage entrepreneurs and start-ups to take exports without any difficulty.
“This MoU will essentially focus on training Indian SMEs in various aspects of exports and familiarise them with global growth opportunities. Certain inherent challenges have deterred the Indian SME sector from performing to its true potential,” PayPal India managing director and country manager Anupam Pahuja said.
The partners will host programmes and seminars to educate and work towards simplifying the processes for the SMEs.
FIEO, which has over 25,000 members, contributes to more than 70 per cent of India’s exports.
Many small exporters from India focus on the local market to steer away from the risks associated with operating in a global marketplace. Complicated shipping and exports procedures also serve as deterrents.
“The awareness programmes will address some commonly faced challenges by SMEs and entail training to empower them with PayPal solutions tailored for this segment,” Pahuja added.