Impact of Digitization and UPI on Small Informal Businesses in India

Abstract

This research paper is related to impact of digitization and UPI on small informal business in India. The advent of digital payment systems, especially the Unified Payments Interface (UPI), has significantly transformed the landscape of informal businesses in India. This study investigates the impact of digitisation and UPI adoption on small informal enterprises by analyzing financial inclusion, customer outreach, ease of transactions, and business growth. The research uses a mixed-methods approach including surveys and interviews with 100+ small business owners across urban and semi-urban regions. The findings indicate increased financial transparency, improved cash flow management, and wider customer base as key benefits. However, barriers such as digital literacy, security concerns, and unstable internet connectivity remain challenges to full-scale adoption.