THE STUDY INVESTIGATES THE EFFECTIVENESS OF DIGITAL PAYMENT SYSTEMS IN ENHANCING THE SUSTAINABILITY, GROWTH, AND PRODUCTIVITY OF SMALL-SCALE INDUSTRIES

Abstract: The aim of the study, the escalating role of the use of financial technology has changed business in the world and digital payment systems came out to be the key catalyst of this change. Small-scale industries (SSIs) are the main pillars of the Indian economy and they are continually hindered by insufficient access to credit, financial management inefficiency and limited market penetration. In that regard, digital payment systems have a high potential to increase their sustainability, development, and performance by increasing the degree of transparency, lowering the cost of transactions, and permitting a wider range of participation in formal financial networks. This paper will analyze how adoption of digital payments contributes to the enhancement of operational and financial productivity of SSIs. The mixed-method method is adopted, which uses quantitative surveys, and qualitative interviews and focus groups discussions to ensure the collection of the measurable effects and the contextual perceptions. The research design is representative in that it has a wide sample of enterprises as it has businesses that are in agro-based sectors, manufacturing, services, handicrafts, and trade. Digital payment adoption and key business outcomes are assessed using analytical tools in the form of descriptive statistics, correlation, and regression, which are processed with SPSS. Other barriers such as cybersecurity threats, infrastructural constraints, and digital literacy gaps are also taken into consideration in the study as they could affect adoption and effectiveness. The contribution of this research to the extensive discussion of digital financial inclusion and its contribution to the further sustainable development of small enterprises is possible through the combination of empirical findings and the opinions of stakeholders. The results are expected to give practical recommendations to policymakers, business persons, and industry bodies in terms of building a safe and inclusive digital payment ecosystem. Keywords: Financial technology, digital payment systems, small-scale industries (SSIs), sustainability, growth, productivity, financial inclusion, transparency. Title: THE STUDY INVESTIGATES THE EFFECTIVENESS OF DIGITAL PAYMENT SYSTEMS IN ENHANCING THE SUSTAINABILITY, GROWTH, AND PRODUCTIVITY OF SMALL-SCALE INDUSTRIES Author: Mr. Guru Prasad, Dr. G.Vinayagamoorthi International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 13, Issue 2, October 2025 - March 2026 Page No: 443-457 Research Publish Journals Website: www.researchpublish.com Published Date: 21-February-2026 DOI: https://doi.org/10.5281/zenodo.18723224 Paper Download Link (Source) https://www.researchpublish.com/papers/the-study-investigates-the-effectiveness-of-digital-payment-systems-in-enhancing-the-sustainability-growth-and-productivity-of-small-scale-industries