Paper Details

Name: Vipan Kumar Bhulal & Ajit Kumar
Country: India

Year: 2026
Volume: Volume-13, Issue-1 (January-June)
Page Number: 123-140
DOI: https://doi.org/10.5281/zenodo.19250012

ABSTRACT
The Digital Payment Systems (DPS) has expanded rapidly in India due to technological
advancements, government-led digital initiatives, and increasing consumer preference for cashless transactions. Himachal Pradesh has also experienced a steady rise in DPS adoption, with small enterprises in urban and semi-urban regions increasingly using UPI, QR-code payments, and mobile wallets. These systems offer significant benefits, including improved record-keeping, faster transactions, reduced cash-handling risks, and enhanced access to formal financial services. However, adoption remains inconsistent, particularly in remote and high-altitude areas where internet connectivity is unstable. Limited digital literacy, fear of cyber fraud, and concerns about taxation further restrict widespread usage among micro and small business owners. This study examines the awareness level, adoption and usage patterns of DPS among small businesses in Himachal Pradesh and identifies areas requiring targeted interventions to strengthen digital financial inclusion. The study identified the awareness level and key drivers of adoption of DPS and challenges that micro and small business holders encounter in the digital payment system. The digital payments contributed positively
for the business growth with the help of DPS. In addition, large portion of sales done through the digital transactions and low dependency on cash transactions. The digital payments reducing transaction time. Safety, security, complete confidence to resolve failed or delayed transactions, reflecting moderate confidence and technical errors remain the major concern. Despite these are some major challenges for the adoption of the DPS, the business owners intentionally want to use and expand DPS usage to continue and grow the use of digital payment systems. The expansion of the digital payment methods can strengthen financial inclusion and promote sustainable digital growth in Himachal Pradesh.

Keywords: DPS, UPI, SMEs, QR-code, POS etc.