Journal of African Development

In India, the digital payment system has revolutionized the business landscape, especially in the realm of small businesses and micro-enterprises. The research article explores the effects of digital payments on small business growth in India, focusing on the influence of various payment technologies, including Unified Payments Interface (UPI), mobile wallets, internet banking, QR code payments, and card-based payments. The research method in this study is descriptive and analytical, and secondary data is obtained from open access journals, institutional reports, government reports, and data on digital payments.

The study concludes that the digital payment methods have had a positive impact on small businesses, highlighting benefits such as streamlined transactions, enhanced customer convenience, better financial visibility, and improved operational efficiency. Digital payments decrease reliance on cash payments, ease financial record keeping, and help improve financial inclusion by linking businesses to formal banking systems. Incentives by the government like Digital India, Jan Dhan Yojana and development of UPI have contributed significantly to the growth of digital payments in India.