Adoption of Digital Payments by Small Retail Stores

Abstract

Entry of large supermarkets and online retailers, and widespread adoption of digital technologies are threatening the business models of small retail convenient stores in India. Using a qualitative methodology and the Technology-Organization-Environment framework, this study, investigated the challenges faced by these small retail stores in the context of a deliberate governmental push towards digital payments and increasing competition from large supermarkets and online retailers. Perceived loss of control, costs of technologies, customer's low socioeconomic background, suppliers influence, tax and security implications, bureaucracy, and lack of trust in the regulatory and external environment are the challenges identified in the study. In addition, poor physical and digital infrastructure, inadequate access to and poor reliability of digital technologies, and the costs are constraining the adoption of digital technologies.

Cyber security in digital payments: An empirical study

“…Digital payments can provide benefits for companies and customers vis-à-vis flexibility, efficiency, mobility, and convenience (Sahi et al 2021; Chaveesuk, Khalid, and Chaiyasoonthorn 2021a) [38,2] , but security becomes an important thing in adopting digital payments. Risk and cost were important inhibitors in adopting digital payments (Ligon et [3,4,6] describes that an electronic payment system is the basis of online payments and it makes electronic payments at any time through the Internet directly to manage the e-business environment. The Payment and Settlement Act, 2007 has defined Digital Payments as any transfer of money or funds which is made by any individual through instruction, approval or order to a bank for debiting or crediting an account maintained with that bank using electronic ways and includes Debit and credit card payments; Automated Teller Machine (ATM transactions, Point of Sale (PoS) transfers or micro ATMs, direct deposits or withdrawal of money, Mobile Payments, Net Banking etc.…”

Exploring the Smart Retail Scenario for Traditional Retailers: Case Studies From a Developing Country

“…Furthermore, previous research on traditional retail in developing countries concentrated more on developing strategies, such as identifying strategies to survive in the competitive world of retail [13], [14] and developing competitive strategies with modern retail franchises [15], [16]. Very little research has been conducted on technology adoption in traditional retail, with most studies focusing on the factors, challenges, and strategies for the adoption of technologies such as e-commerce [17]- [19], digital payment [20], [21], mobile payment [22], [23], and selfscanning technology [24]. While it is crucial to develop a smart retail adoption model for traditional retail that has limited resources so that it may successfully adopt technology that fits the context and local challenges of developing countries.…”

Factors impacting behavioural intentions to adopt the electronic marketplace: findings from small businesses in India

“…However, the majority of Indian retailers' financial accounts and store operations were maintained physically (Kapuria & Nalawade, 2021). Heavy reliance on cash, physical locations, catering to smaller areas, and manually managing staff and stocks, limited the capacity of such stores for digital adoption (Seethamraju & Diatha, 2018). While the pandemic has accelerated the shift to a digital market, local sellers faced the challenge of how to adapt to EM.…”