Digital Payment Adoption and Its Challenges Among Kirana Stores in the Post-Pandemic Era

Abstract The COVID-19 pandemic accelerated the digital transformation of financial services across India, particularly among micro-retailers such as Kirana stores. This study investigates the extent of digital payment adoption, the motivations behind the shift, and the challenges experienced by Kirana store owners. Using a mixed-methods approach, including structured surveys and interviews with 160 store owners across urban and semi-urban areas, the study finds a sharp increase in digital payment use post-pandemic. Key drivers include consumer demand, operational convenience, and safety concerns, while challenges such as digital illiteracy, network issues, and trust deficits continue to impede wider adoption. Findings support theoretical models like TAM and UTAUT and suggest policy-level interventions for inclusive digital adoption.