Digital Payments as a Driving Force of Business Transformation: A Study on Street Vendors in Vijayawada

Digital payments are increasingly changing the way small businesses operate, especially in the informal sector where cash transactions were once the norm. This study explores how the adoption of digital payment methods has influenced the business activities of street vendors in Vijayawada. It focuses on key aspects such as transaction speed, customer convenience, and changes in income patterns to understand the broader impact of this shift. The research follows a descriptive and analytical approach, using primary data collected from 50 street vendors through a structured questionnaire based on a five-point scale. Respondents were selected using convenience sampling from major commercial areas in Vijayawada. The data were analyzed using basic statistical techniques, including percentage analysis, mean scores, correlation, and regression, to identify patterns and relationships between digital payment usage and business outcomes. The results show that a large number of vendors have started accepting digital payments, particularly through UPI and mobile wallets, mainly due to increasing customer preference for cashless transactions. Vendors reported that digital payments make transactions faster, reduce the need to handle cash, and improve customer satisfaction. The analysis also suggests a positive link between the use of digital payments and improvements in sales and customer retention. The study highlights several practical challenges. Many vendors face difficulties due to limited digital knowledge, network connectivity issues, and concerns about transaction security. In some cases, lack of proper infrastructure also affects smooth usage. Overall, the study finds that digital payments are playing an important role in transforming the business practices of street vendors. However, for these benefits to be sustained, there is a need to improve digital awareness, strengthen infrastructure, and provide better support systems that help vendors confidently adopt and use digital technologies. .