DIGITAL PAYMENTS AND STREET VENDORS IN TIER-2 CITIES OF INDIA: AN EMPIRICAL STUDY OF BUSINESS PERFORMANCE, FINANCIAL INCLUSION, AND CHALLENGES IN KALABURAGI DISTRICT, KARNATAKA

India's rapid transition toward a digital economy has placed street vendors a critical segment of the informal sector at the centre of an unprecedented financial transformation. This paper examines the impact of digital payment adoption on street vendors in Kalaburagi district, Karnataka, with a focus on business performance, financial inclusion outcomes, operational challenges, and inter-taluk variations. Drawing on structured primary data from 450 street vendors across three taluks i.e. Kalaburagi City, Sedam, and Aland—the study employs descriptive statistics, chi-square tests, ANOVA, and regression analysis to derive evidence-based insights. The findings reveal that digital payment adoption has significantly improved transaction efficiency, customer retention, and daily sales among vendors, while also enhancing access to formal financial services. However, persistent challenges including limited digital literacy, unreliable internet connectivity, fear of cyber fraud, and inadequate grievance redressal mechanisms constrain the depth and equity of these benefits. Significant inter-taluk variations confirm that urban vendors gain disproportionately compared to their semi-urban counterparts. The study concludes with actionable policy recommendations to ensure that digital payment expansion serves as an instrument of genuine inclusion for informal sector workers.