Impact of Digital Payment Systems on Small Retail Businesses: A Study in Shivamogga, Karnataka, India

Abstract

Digital payment systems have revolutionized the retail sector, significantly influencing small retail businesses. This study examines the impact of digital payment systems on operational efficiency, customer satisfaction, and revenue growth in small retail businesses in Shivamogga. It identifies challenges and opportunities faced by retailers in adopting these systems and highlight the role of technology and government initiatives in promoting digital adoption. Data collected from 150 retailers through surveys and interviews reveal increased operational efficiency and customer reach but also underline persistent barriers such as technological illiteracy and infrastructure constraints. The study emphasizes the need for enhanced support systems to improve the effectiveness and inclusivity of digital payment platforms for small retail businesses.