Impact of Digital Payments on Small Businesses in Tirunelveli District

Abstract

The rapid evolution of digital payment systems is transforming business operations globally, including in India. This study explores the impact of digital payments on small businesses in Tirunelveli District, based on a survey of 145 business owners, such as shopkeepers and micro-entrepreneurs. Findings reveal that the Unified Payments Interface (UPI) and mobile wallets are preferred options, with many respondents reporting increased sales and improved operational efficiency after adopting these methods. Data shows a significant link between digital payment adoption and enhanced business performance. However, challenges like digital literacy, infrastructure issues, and security concerns remain. To maximise benefits, we recommend investing in digital literacy, improving infrastructure, and implementing secure payment solutions.