Unified Payment Interface (UPI) – Economy Transformer for Small Businesses in India

Abstract

This research paper explores the impact of Unified Payment Interface (UPI) payments on small businesses in India. Through a comprehensive literature review, conceptual framework, and data collection from small businesses, this research provides insights into the benefits, challenges, and behaviour associated with UPI payments. The study focuses on understanding how UPI payment have reshaped and enhanced small business operations and their implications for financial inclusion, economic growth, and digital transformation.

Through a mixed-methods approach, quantitative and qualitative data are collected from small business owners with the help of survey questionnaires determining usage patterns, perceived benefits, and challenges from using UPI payments.

The findings of this study highlight the significant positive impact of UPI payments on small businesses, enabling them to adapt to the digital economy quicker and compete more effectively in the market. The study explains the role of UPI in promoting financial inclusion, facilitating business growth, and reducing cash dependency, eventually helping the Government to move towards Cashless Economy. However, it also highlights the challenges related to the security, slow progress in network infrastructure, and customer adoption that needs to be addressed for the widespread adoption and sustainable use of UPI by small businesses.