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June 4, 20260 citationsOpen Access

A Study on Adoption of Digital Payments in Informal Sectors: Post-Demonetization in District Bilaspur, Himachal Pradesh

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PKPraveen KumarJSJyoti SondhiDRDivya Rai

Key Points

  • The research aims to explore how digital payments are adopted in India's informal sector post-demonetization and identify key influencing factors.
  • Mixed-method approach involving 60 participants, including vendors, small retailers, and daily wage earners.
  • Focus on identifying determinants of digital payment adoption and implications for financial inclusion.
  • 88.3% of respondents reported using digital payments, with 71.7% engaging in daily transactions.
  • Initial adoption driven by necessity; ongoing use depends on factors like ease of use, trust, and smartphone access.

Abstract

This study examines the adoption of digital payments in India's informal sector following the 2016 demonetization. Using a mixed-method approach with 60 participants — vendors, small retailers, and daily wage earners from Bilaspur, Himachal Pradesh, the research identifies key adoption determinants and their implications for financial inclusion. Findings show 88.3% of respondents use digital payments, with 71.7% transacting daily. While necessity drove initial adoption, sustained usage depends on ease of use, trust, and smartphone access. Targeted interventions in digital literacy and infrastructure are recommended.

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Cite This Study

Kumar et al. (2026) studied this question.

synapsesocial.com/papers/6a211689d499ed480b16f86ahttps://doi.org/10.5281/zenodo.20504933
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