Adoption of Digital Payments and their Impact on Business Success among Women Micro-Entrepreneurs

Abstract

This study investigates the adoption of digital payment systems and their impact on business success among women micro-entrepreneurs in India. The research applies the Technology Acceptance Model (TAM) to evaluate how useful perception and usability perception when combined with behavioural intention influences digital payment adoption. ANOVA and regression statistical approaches analysed questionnaire responses from women micro-entrepreneurs to generate study results. The study outcomes reveal that digital payment adoption patterns stem from how users recognize usefulness and ease of use functions to produce commercial success through increased sales and expanded client networks and better operation capabilities. Digital payments function as an innovative instrument which supports women micro-entrepreneurs through their business growth and sustainability despite shortages in infrastructure and digital knowledge. The study provides essential findings which help policymakers along with financial organizations and development agencies who want to promote digital inclusion for women entrepreneurs.

Introduction

Modern digital payment systems are transforming global finance by improving efficiency and accessibility, especially benefiting developing economies where cash-based and informal transactions prevail. Women micro-entrepreneurs, often constrained by financial, cultural, and mobility barriers, particularly benefit from digital payments like mobile wallets, QR codes, UPI, and POS machines. Programs such as Digital India and Jan Dhan Yojana have accelerated digital financial inclusion in rural areas, providing women with safer, faster, and more documented payment methods that support access to credit and insurance.

Despite the advantages, women micro-entrepreneurs show varied adoption rates of digital payments due to obstacles like digital illiteracy, distrust, fear of fraud, and patriarchal restrictions limiting access to devices and banking services. Understanding these barriers and facilitators is crucial for developing inclusive digital financial services.

The literature review highlights global evidence of digital payments enhancing business performance and resilience for women entrepreneurs, such as in Kenya, Nigeria, Brazil, and India. However, it notes gaps in research on how digital payments specifically impact women’s business growth, ease of use, and sustained adoption.

The study aims to examine how user-friendliness and perceived usefulness of digital payments influence adoption among women micro-entrepreneurs, and how this adoption correlates with business success indicators like revenue growth and customer expansion. Using a conceptual model based on the Technology Acceptance Model (TAM) and Unified Theory of Acceptance and Use of Technology (UTAUT), the research investigates factors such as financial literacy, trust, and accessibility.

A quantitative methodology with a survey of 150 women micro-entrepreneurs was employed, analyzing data with statistical tools like regression and ANOVA. Preliminary demographic data show that most participants are women aged 25-54, with varying education levels and business sectors including services, food, and handicrafts. The findings suggest that digital payments significantly improve financial management, operational efficiency, and empower women entrepreneurs toward sustained business success.

Conclusion

Researchers have confirmed that women micro-entrepreneurs in India obtain substantial business success through digital payment adoption. The research findings which apply the Technology Acceptance Model demonstrate that perceived usefulness together with ease of use perception has substantial influence on digital payment system adoption intentions among users. These entrepreneurs experience concrete gains from their behavioral intention which bolster their operational performance, increases their market opportunities and enhances their financial control thus enabling better results in their entrepreneurial goals. The research indicates that digital financial inclusion elevates business prospects for women entrepreneurs through demographic research and proves the vast possibilities digital platforms generate for small business achievement. Policymakers and stakeholders should prioritize both digital education development along with platform trust-building and easy access to digital financial tools for women entrepreneurs to achieve maximum digital financial service benefits.

References

[1] Dos Santos, L. F., Bettiol, M., & Del Gaudio, G. (2020). Digital financial services and business performance: The case of Brazilian women entrepreneurs during the COVID-19 crisis. Sustainability, 12(21), 9053. [2] Donner, J. (2008). Mobile telephony and poverty alleviation: Technology infusion and social transformation in developing countries. Information Technologies & International Development, 4(2), 40–54. [3] Hassan, S., Radzi, W. N. W., Mohamad, M., & Wahab, S. (2021). The impact of digital marketing adoption on the performance of rural micro-enterprises during the COVID-19 pandemic. Journal of Rural Studies, 82, 342–351. [4] Hennart, J. F., Majocchi, A., & Hagen, J. (2019). What matters for the performance of international new ventures? A meta-analysis. Journal of International Business Studies, 50(4), 542–565 [5] Jack, W., & Suri, T. (2014). Risk sharing and transaction costs: Evidence from M-Pesa. American Economic Review, 104(1), 183–220. [6] Kimari, J. N., Were, M., & Wanjau, K. (2022). Mobile credit transaction costs and the performance of micro and small enterprises in Nairobi City County, Kenya. 1 Cogent Business & Management, 9(1), 2024338. [7] Levy, N. E. (2020). Intersectionality in the digital economy. Feminist Media Studies, 20(6), 807–823. [8] Mbiti, I. M., & Weil, D. N. (2011). Mobile money: The economics of M-Pesa. NBER Working Paper Series, (17129). [9] Ndung\'u, N., & Waema, T. (2020). The impact of mobile banking on financial performance of commercial banks in Kenya. Journal of Innovation and Entrepreneurship, 9(1), 1–19. [10] Rajendran, L., & Thomas, S. (2021). Impact of digital financial literacy on the performance of rural women entrepreneurs. Journal of Management and Entrepreneurship, 9(4), 1–14. [11] Sari, R. N., & Nugroho, L. (2021). The adoption of digital technology and its impact on the performance of women-owned micro and small enterprises in Indonesia. Journal of Small Business and Entrepreneurship, 33(6), 767–786. [12] Sharma, G. D., & Mehta, S. (2021). COVID-19 and disruptions in supply chain: Exploring the impact on Indian women entrepreneurs. Journal of Business Venturing Insights, 16, e00279. [13] UNESCAP. (2022). Unlocking the potential of digital trade for women entrepreneurs in Asia and the Pacific. United Nations Economic and Social Commission for Asia and the Pacific. [14] World Bank. (2020). Digital livelihoods: Promoting jobs and economic opportunities in the digital economy. World Bank Publications.

Copyright

Copyright © 2025 Supritha T, Anitha BM D\\\'Silva . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.