UPI AS A CATALYST FOR THE DIGITAL PAYMENT REVOLUTION IN INDIA: IMPACTS ON RETAILERS AND SMALL BUSINESSES

India’s digital economy has grown at an unprecedented pace over the last decade. It has democratized digital payments, especially for micro and small businesses, who previously relied heavily on cash transactions. This research examines how UPI has fueled the digital payment revolution across this segment and reshaped traditional business practices.At the heart of this growth is UPI- an innovative, real-time payment system developed by the National Payment Corporation of India (NPCI). UPI allows users to transfer money instantly between bank accounts using mobile apps. Retailers and small vendors form the backbone of India’s informal economy. UPI offers them a simple, cost-effective, and accessible digital payment solution. The rapid adoption of digital payment systems in India has revolutionized the financial ecosystem, especially with the launch of the Unified Payments Interface (UPI) in 2016.In the past decade, India has made significant strides towards building a digital-first economy. A major milestone in this journey has been the development of UPI- a real-time, interoperable payment system that links multiple bank accounts to a single mobile interface. Small and Medium enterprises (SMEs) and retailers traditionally operates in cash-heavy environments with limited access to formal banking. UPI has changed this narrative by offering these businesses low-cost, easy-to-adopt digital payment solutions. This study aims to explore the impact of UPI in modernizing payments, improving transparency, and enhancing financial inclusion for small-scale retailers.