Impact of Financial Innovations in the Transition of Traditional Labour to Gig Labour in India

Abstract This paper looks at recent related trends in India: the rise of FinTech and the increase in gig work. It reviews academic work on how financial innovations have changed informal labor toward the gig economy. The study covers research on digital payment systems (like India Stack and UPI), inclusion programs, and platform-based finance related to gig work. It focuses on how digital wallets and UPI enable small businesses and workers to handle payments, how digital lending and credit scores impact micro-entrepreneurs, and what this means for bringing these workers into the formal economy. The review points out that while digital finance has greatly increased access to financial services for those lacking them, problems like digital literacy and gender inequality continue. The paper ends with a discussion of what these findings mean for policy and suggests areas for more research.