Cashless Economies and Small Enterprises: How Digital Payments Influence Business Growth

Shivang Chand

Abstract: The rapid growth of digital payment systems has significantly transformed the way small businesses operate worldwide. Mobile wallets, online banking, and cashless transactions are increasingly replacing traditional cash-based systems, offering new opportunities and challenges for small enterprises. This paper examines the impact of digital payment adoption on small business growth, focusing on changes in sales performance, customer reach, and operational efficiency. It also explores barriers such as transaction fees, cybersecurity risks, and technological limitations that affect adoption. Using a qualitative and analytical approach based on existing literature and market observations, the study finds that digital payments generally contribute positively to business growth by improving transaction speed, enhancing customer convenience, and enabling access to wider markets. However, challenges related to costs, digital literacy, and security concerns remain significant. The paper concludes that while digital payments are a key driver of small business growth in cashless economies, supportive policies, education, and secure infrastructure are essential to maximize their benefits.

Keywords: Digital payments, small businesses, cashless economy, mobile wallets, business growth

How to Cite?: Shivang Chand, "Cashless Economies and Small Enterprises: How Digital Payments Influence Business Growth", Volume 15 Issue 1, January 2026, International Journal of Science and Research (IJSR), Pages: 1357-1358, https://www.ijsr.net/getabstract.php?paperid=SR251231155335, DOI: https://dx.doi.org/10.21275/SR251231155335