This work is licensed under a Creative Commons Attribution 4.0 International License .
Digital Payments as a Driving Force of Business Transformation: A Study on Street Vendors in Vijayawada
Assistant Professor, Gates Institute of Management & Sciences, Vijayawada, India
Abstract
Digital payments are increasingly changing the way small businesses operate, especially in the informal sector where cash transactions were once the norm. This study explores how the adoption of digital payment methods has influenced the business activities of street vendors in Vijayawada. It focuses on key aspects such as transaction speed, customer convenience, and changes in income patterns to understand the broader impact of this shift. The research follows a descriptive and analytical approach, using primary data collected from 50 street vendors through a structured questionnaire based on a five-point scale. Respondents were selected using convenience sampling from major commercial areas in Vijayawada. The data were analyzed using basic statistical techniques, including percentage analysis, mean scores, correlation, and regression, to identify patterns and relationships between digital payment usage and business outcomes. The results show that a large number of vendors have started accepting digital payments, particularly through UPI and mobile wallets, mainly due to increasing customer preference for cashless transactions. Vendors reported that digital payments make transactions faster, reduce the need to handle cash, and improve customer satisfaction. The analysis also suggests a positive link between the use of digital payments and improvements in sales and customer retention. The study highlights several practical challenges. Many vendors face difficulties due to limited digital knowledge, network connectivity issues, and concerns about transaction security. In some cases, lack of proper infrastructure also affects smooth usage. Overall, the study finds that digital payments are playing an important role in transforming the business practices of street vendors. However, for these benefits to be sustained, there is a need to improve digital awareness, strengthen infrastructure, and provide better support systems that help vendors confidently adopt and use digital technologies. .
Keywords: Digital Payments, Customer Preference, Transactions, Digital Awareness, Transaction Security.
References
- M. V. Reddy, “Factors Influencing Digital Payment Adoption in Urban India: Evidence from Vijayawada,” International Journal of Scientific Research in Engineering and Management, vol. 10, no. 2, pp. 1–9, Feb. 2026. https://doi.org/10.55041/ijsrem56357
- T. B. Thabet and C. Mertzanis, “Retail Cryptocurrency Adoption and the Progress of Central Bank Digital Currencies,” Research in International Business and Finance, vol. 87, p. 103422, Apr. 2026. https://doi.org/10.1016/j.ribaf.2026.103422
- M. G. B. Godjali and S. Supramaniam, “Entrepreneurial Mindset Strategies in Times of Crisis: A Qualitative Study on Street Food Vendors,” Qualitative Research Journal, vol. 25, no. 2, pp. 160–179, Sep. 2024. https://doi.org/10.1108/QRJ-02-2024-0043
- P. T. Tran-Truong et al., “A Systematic Review of Multi-Factor Authentication in Digital Payment Systems: NIST Standards Alignment and Industry Implementation Analysis,” Journal of Systems Architecture, vol. 162, p. 103402, Mar. 2025. https://doi.org/10.1016/j.sysarc.2025.103402
- S. Hunter et al., “Factors Influencing Digital Financial Services Adoption in Low- and Medium-Income Countries: A Systematic Literature Review,” International Journal of Bank Marketing, vol. 43, no. 9, pp. 1884–1909, Oct. 2025. https://doi.org/10.1108/IJBM-09-2024-0580
- J. Crusoe, J. Magnusson, and J. Eklund, “Digital Transformation Decoupling: The Impact of Willful Ignorance on Public Sector Digital Transformation,” Government Information Quarterly, vol. 41, no. 3, p. 101958, Jul. 2024. https://doi.org/10.1016/j.giq.2024.101958
- H. Nassereddine and A. Khoshkenar, “Smart Cities: Digital Transformation for Sustainable Urban Development,” in Elsevier eBooks, 2025, pp. 389–415. https://doi.org/10.1016/B978-0-443-29861-5.00019-6
- G. Zhang and K. C. Chan, “Tracing Tax Transparency: The Effect of Central Bank Digital Currency on Corporate Tax Avoidance,” Journal of Accounting and Public Policy, vol. 54, p. 107377, Nov. 2025. https://doi.org/10.1016/j.jaccpubpol.2025.107377
- K. B. Yahia, “The Dark Side of Cryptocurrency Adoption in an Emerging Market: Perspectives of Tunisian Users vs. Professionals,” International Journal of Emerging Markets, pp. 1–24, Sep. 2025. https://doi.org/10.1108/IJOEM-04-2024-0687
- G. Bizama, “Fast Payment Systems and Central Bank Digital Currencies: Evidence from Pix and the Drex in Brazil,” Latin American Journal of Central Banking, p. 100206, Mar. 2026. https://doi.org/10.1016/j.latcb.2026.100206
- P. Vasavi, D. Uma Kumari, and P. V. S. Sairam, “AI-Driven Social Media Marketing and Its Impact on Consumer Behaviour,” International Journal of Emerging Research in Science Engineering and Management, vol. 2, no. si1, pp. 83–87, May 2026. https://doi.org/10.66710/ijersem.v2si1.10
- S. A. Wani, A. Pani, R. Mohan, and B. Bhowmik, “Digital Payment Adoption in Public Transportation: Mediating Role of Mode Choice Segments in Developing Cities,” Transportation Research Part A: Policy and Practice, vol. 191, p. 104319, Nov. 2024. https://doi.org/10.1016/j.tra.2024.104319
- B. R. Kumar, S. Rajesh, N. A. K. Chowdari, and T. S. Lakshmi, “Digital Transformation in Rural Governance: A Case Study,” International Journal of Emerging Research in Science Engineering and Management, vol. 1, no. 1, pp. 15–21, Jul. 2025. https://doi.org/10.58482/ijersem.v1i1.3
- M. M. Shanmugapriya, “A Study on Business Use of Digital Platforms with Special Reference to Chennai City,” International Journal of Emerging Research in Engineering, Science, and Management, vol. 2, no. 3, pp. 10–15, 2023. https://doi.org/10.58482/ijeresm.v2i3.3