Going Cashless: A Study on the Impact of Digitalization on Small Businesses

Abstract:

As we move towards a Digital India, the government seeks to develop a secure and stable digital infrastructure, deliver its services efficiently, and enhance digital literacy. A Cashless economy is one which has minimal use of physical cash in circulation and has maximum transactions using credit/debit cards, wallets or digital modes. India decided to go cashless on 1^st July 2015, with the announcement of a Digital India by Prime Minister Narendra Modi. As the official site says, “Faceless, Paperless, Cashless” is one of professed role of Digital India. The adoption of cashless transactions was propelled by demonetization, and the pandemic further accelerated its momentum.

With India topping the world ranking in digital payments, economies worldwide are transitioning to cashless transactions at a quick pace. The impact this wave of digitalisation has caused on small businesses, characterised by limited resources and diverse operational models, remains a critical area of study. This study intends on understanding the perspective of people towards using digital methods of payment to further dive into its implications on businesses.