Impact of digital payment and e-commerce platforms on small businesses growth using financial literacy as moderator

The world is constantly evolving with the help of technological advancements. The small businesses are the backbone of any country’s economy especially in the case of emerging markets of developing nations. The introduction of digital payments is reshaping the traditional business model especially small businesses in emerging markets and economies by providing them with more opportunities for growth and efficiency in small businesses by utilizing the facilities of an e commerce platform. This paper analyzes the impact of digital payments and e commerce platforms in small markets by highlighting the role of financial inclusion, efficiency, security risks and economic growth. Additionally, the researcher used Financial Literacy as a Moderating variable, to see the influence and benefits of adopting digital mode of payments and the utilization of e commerce platforms on small businesses in emerging markets. This study suggests that Governments, Financial institutions and fintech companies prioritizes financial literacy programs and also develop digital infrastructure for the benefits of small businesses. This conceptual study reveals that businesses with higher financial literacy are more likely to maximize the benefits of digital payments and e commerce platforms. It also concludes that the adoption of digital payments methods and e commerce platforms will enhance small businesses by improving efficiency, security concerns and awareness.