Cashless Transactions and Their Influence on Rural Small Businesses in Kanyakumari District
DOI:
https://doi.org/10.66635/3ppq0f47Keywords:
Digital Payments, Cashless Transactions, UPI, Rural Businesses, FinTech, Financial InclusionAbstract
The increasing adoption of digital payment technologies has significantly transformed the functioning of rural small businesses in India. Cashless payment methods such as Unified Payments Interface (UPI), QR-code payments, mobile wallets, and internet banking have enabled rural merchants to conduct transactions more efficiently and conveniently. This study examines the influence of cashless transactions on rural small businesses in Kanyakumari District, Tamil Nadu. Primary data were collected from 308 rural business owners, including grocery store operators, tea stall owners, vegetable vendors, and small retailers, using a structured questionnaire. Statistical tools such as percentage analysis, Friedman test, correlation, regression, ANOVA, reliability analysis, and structural equation modelling were employed for data analysis. The findings reveal that cashless transactions positively influence transaction speed, customer satisfaction, accessibility, and business growth. Awareness of digital payments, UPI usage, convenience, and digital literacy were identified as key drivers of adoption, while internet connectivity issues and security concerns remained major challenges. The novelty of this study lies in its district-level examination of the direct impact of digital payment adoption on rural business performance, an area that has received limited attention in existing research. The findings provide practical insights for policymakers, financial institutions, and FinTech providers to strengthen digital infrastructure, enhance digital literacy, and promote sustainable rural economic development.
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