Digital Payment Systems in Erode District: Adoption and Impact Among - A Study in Erode District

Digital payment systems (DPS) such as UPI, QR-based wallets, PoS machines, and net banking havegrown rapidly in India, especially after the government’s financial inclusion and digitalization initiatives. In semiurban districts like Erode (Tamil Nadu), known for textiles, turmeric, and agro-trade, small retailers play a vitalrole in the local economy. This study explores the adoption and impact of DPS among small retailers in ErodeDistrict, focusing on adoption levels, influencing factors, barriers, and post-adoption effects. A survey of 200small retailers reveals that 76% have adopted DPS, with UPI/QR codes being the most popular. Retailers reportreduced cash handling, faster checkouts, and improved record-keeping, though challenges like transactionfailures, MDR on cards, and reconciliation issues persist. The study suggests strengthening awareness,infrastructure, and policy support to ensure sustainable adoption