Small-scale merchants’ acceptance of UPI payment apps: evidence from India

Governments globally are implementing digital public infrastructure (DPI) initiatives to bridge the digital divide and improve access to government services. India’s Unified Payment Interface (UPI) is an example of a government initiative in promoting financial inclusion through digital payments. While literature is abundant with discussions on digital payments and their adoption, a noticeable gap exists in understanding the acceptance of UPI among small-scale merchants in India. The study aims to examine the key factors influencing the small-scale merchants’ intention to use and actual use behaviour of UPI payment apps. Employing a mixed-method design, the study collects data from small-scale merchants operating in various socio-economic regions as per the Human Development Index. The study contributes to the literature by examining India’s DPI initiative in digital payments and specifically, UPI payment acceptance by small-scale merchants. The study offers valuable insights for policymakers to optimise DPI initiatives and promote digital inclusion.