Digital Payment Adoption among Small and Informal Businesses

Peter Trkman

Digital Payment Adoption among Small and Informal Businesses

Author(s)	Peter Trkman
Country	United States
Abstract	The rapid expansion of digital payment technologies has significantly transformed the financial behaviour of businesses across developing and emerging economies. Small and informal businesses, which traditionally depend on cash-based transactions, are increasingly exploring digital payment systems to improve operational efficiency, customer convenience, financial transparency, and market accessibility. However, the adoption of digital payment solutions among these enterprises remains influenced by multiple technological, economic, behavioural, and institutional factors. This study examines the factors affecting digital payment adoption among small and informal businesses, focusing on technology awareness, perceived usefulness, trust, digital capability, transaction convenience, and infrastructural accessibility.The study adopts a quantitative research approach using a structured analytical framework to evaluate adoption patterns and identify major barriers affecting digital payment implementation. A simulated dataset representing small and informal business operators was analysed using descriptive statistical techniques to understand adoption trends, perceived benefits, and operational challenges. The findings indicate that perceived convenience, faster transaction processing, and customer preference are among the strongest drivers encouraging digital payment adoption. Conversely, limited digital literacy, cybersecurity concerns, unstable internet connectivity, and lack of technological confidence continue to restrict wider adoption.The research contributes to the understanding of digital transformation within informal economic sectors by highlighting the relationship between technological readiness and financial inclusion. The study suggests that targeted digital training programs, improved payment infrastructure, and trust-building mechanisms are essential for increasing adoption among small enterprises. The findings provide useful implications for policymakers, financial service providers, and business development institutions seeking to promote inclusive digital financial ecosystems.
Keywords	Digital Payment, Informal Businesses, Small Enterprises, Financial Inclusion, Digital Transformation, Technology Adoption, Mobile Payments
Field	Engineering
Published In	Volume 2, Issue 4, July-August 2020
Published On	2020-07-13

View / Download PDF File

About AIJRI Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+1-872-302-3851	editor@aijri.com

American International Journal of Research and Innovation

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Digital Payment Adoption among Small and Informal Businesses

Share this