Impact of Digital Financial Technology Adoption on Banking Performance of Grocery Shop Owners in Chikodi Taluka

The rapid growth of digital financial technology has significantly transformed the way small retail businesses manage their banking and financial transactions. This study examines the adoption of digital financial technology and its impact on the banking performance of grocery shop owners in Chikodi Taluka. The research focuses on digital tools such as UPI applications, QR code–based payments, POS/card-swiping machines, mobile banking, and internet banking facilities. Using a descriptive and analytical research design, primary data were collected from 60 grocery shop owners through a structured questionnaire. Statistical tools including descriptive analysis, One Sample t-test, Friedman test, and Pearson correlation analysis were employed to assess adoption levels, differences among digital tools, and the relationship between digital adoption and banking performance. The findings reveal a high level of digital financial technology adoption among grocery shop owners, with UPI emerging as the most widely used and preferred mode of digital payment. The study also establishes a strong and statistically significant positive relationship between digital financial technology adoption and banking performance, indicating improvements in transaction speed, record accuracy, reduced cash handling, and overall banking efficiency. Although no significant difference was found among the various digital tools in terms of adoption, the overall results highlight the critical role of digital financial technology in enhancing banking performance for small retail businesses. The study underscores the need for continued digital literacy initiatives, secure infrastructure, and supportive banking policies to further strengthen digital financial inclusion among grocery shop owners.