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

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