Analyzing The Factors That Influencing Digital Payments Usage Among Street Vendors

In recent years, digital payment systems have significantly transformed financial transactions, particularly in developing countries like India. Street vendors, who form a vital part of the informal economy, are increasingly adopting digital payment methods due to the widespread use of smartphones, improved internet connectivity, and supportive government initiatives such as Digital India and the Unified Payments Interface (UPI). The shift towards digital payments was further accelerated by major events such as the 2016 demonetization and the COVID-19 pandemic. Demonetization pushed both consumers and vendors to explore cashless alternatives, while the pandemic emphasized the importance of contactless transactions for safety and hygiene. As a result, many street vendors started accepting payments through QR codes, mobile wallets, and UPI applications, making digital transactions a part of their daily business operations. However, the adoption of digital payment systems among street vendors is influenced by several factors. Key drivers include customer preference, ease of use, and convenience. At the same time, barriers such as lack of awareness, low digital literacy, fear of fraud, and poor network connectivity continue to restrict wider adoption. This study aims to analyze the factors influencing digital payment usage among street vendors using a descriptive research design. It is based on both primary and secondary data, with primary data collected through structured questionnaires and interviews. The study highlights that improving digital literacy, enhancing infrastructure, and building trust in digital systems can significantly increase the adoption of digital payments among street vendors, thereby promoting financial inclusion and economic growth.