Digital Payment Adoption and Its Influence on Retail Business Practices in Ahmedabad: A Generational Perspective

Abstract

India’s rapid shift toward a digital economy has transformed retail payment practices, making digital modes increasingly essential for business operations. This study examines digital payment adoption among small and medium retailers in Ahmedabad, focusing on generational differences between younger and mid-career entrepreneurs. Primary data from 102 respondents were analyzed using non-parametric techniques including the Mann Whitney U, Chi-Square, and Kruskal–Wallis tests to assess usage patterns, perceptions, and operational concerns. Results indicate that younger retailers exhibit stronger acceptance of UPI, QR payments, and mobile wallets, while older counterparts remain cautious due to traditional business habits, trust concerns, and taxation uncertainty. Challenges related to fraud risks, network failures, and low digital competency continue to hinder smooth adoption, particularly among conventional retail formats. The study proposes strategic interventions by policymakers and fintech service providers to enhance confidence, strengthen infrastructure, and support inclusive digital participation among all retailer segments.