A STUDY ON IMPACT OF DIGITAL PAYMENT (UPI) ON RETAILERS AND RETAILER CONSUMERS WITH SPECIAL REFERENCE TO KARKALA AND BELMAN

ABSTARCT
The rapid growth of digital payments in India has reshaped financial practices, with the Unified
Payments Interface (UPI) emerging as a transformative platform for seamless, low-cost, and
real-time transactions. This study, “A Study on Impact of Digital Payment (UPI) on Retailers
and Retailer Consumers with Special Reference to Karkala and Belman”, investigates the
extent, benefits, and challenges of UPI adoption in semi-urban towns of Karnataka. Using a
descriptive research design, data were collected from 272 respondents, comprising 132 retailers
and 140 consumers, through structured questionnaires. The study analyses adoption depth,
transaction frequency, infrastructural barriers, and the influence of government initiatives
promoting digital payments. Findings reveal that while UPI enhances convenience,
transparency, and financial inclusion, its adoption is moderated by issues such as inconsistent
internet connectivity, transaction failures, and lack of digital literacy. Retailers reported
advantages like reduced cash handling risks and improved record-keeping, whereas consumers
valued convenience, speed, and cashback incentives. However, both groups expressed concerns
regarding security risks and infrastructure limitations. The study concludes that although UPI
has significantly penetrated semi-urban markets, sustained adoption requires stronger digital
literacy campaigns, infrastructural improvements, and trust-building measures. The insights
from this research contribute to understanding digital payment transitions at the grassroots level
and provide recommendations for policymakers, retailers, and financial institutions.