Impact of UPI on Small Vendors belonging to Marginalised Sections of Society: A Qualitative Study

Abstract: Launched in 2016, Unified Payment Interface (UPI) has emerged as the predominant payment method for a billion Indians, promoting financial inclusion in India. The scan-and-pay UPI system is employed in almost all routine transactions, from substantial luxury purchases of thousands of rupees to a little 10-rupee cup of tea. The study was conducted to investigate the effect of the UPI system on small vendors belonging to marginalised sections of society. The respondents belong to street vendors selling vegetables, sandwich sellers, flowers, Mochi, tea stalls, fruit sellers, bottle shops, etc. All these respondents are selling their products without a pakka shop, i.e., on a Thela. The study was conducted to determine how the UPI system has changed their business and life. What benefits have they received from using UPI in their business, and what challenges and problems are they facing while using UPI? The respondents were also asked for suggestions for improvement in the UPI system. Keywords: UPI, Payment Interface Marginalised, Small Vendors JEL Classification Number: O33, E42, O17