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VOL. 7, ISSUE 3 (2025)
The influence of digital payment systems on cash flow and working capital performance of small retailers in India
Authors
Dr. Raj Kumar Singh
Abstract
The rapid spread of digital payment systems has reshaped the financial
landscape of small retailers in India, particularly after the demonetization of
2016 and the COVID-19 pandemic. This paper examines how the adoption of
platforms such as the Unified Payments Interface (UPI), mobile wallets, and
QR-code-based payment systems has influenced the cash flow patterns and working
capital management of small retailers across urban, semi-urban, and rural
India. Drawing on secondary data, government reports, and published empirical
studies from 2016 to 2025, the paper explores the positive outcomes — such as
faster fund settlement, improved transaction transparency, and better access to
institutional credit — as well as the persistent challenges, including digital
literacy gaps, infrastructure limitations, and concerns around internet
reliability. The findings suggest that while digital payments have brought
measurable improvements in daily cash flow for those retailers who have adopted
them, the benefits remain unevenly distributed. The paper concludes with policy
recommendations aimed at deepening financial inclusion and building the
capacity of small retailers to manage working capital more effectively in a
digitally driven economy.
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Pages:63-66
How to cite this article:
Dr. Raj Kumar Singh "The influence of digital payment systems on cash flow and working capital performance of small retailers in India". International Journal of Management and Commerce, Vol 7, Issue 3, 2025, Pages 63-66
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