FinTech Adoption and Business Sustainability Among Retailers and Street Vendors in the NCR Region

Abstract

The quick rise of FinTech, with a strong emphasis on the utilization of UPI-based digital payments, has reshaped the business environment for small enterprises in India. Retailers and street vendors use QR-code payments, mobile banking, digital wallets, and FinTechs to receive money from their customers, keep track of cash flows, receive formal financing and record transactions. Nevertheless, usage itself is not enough to ensure sustainable business operation. This research aims to analyze the connection between FinTech adoption and business sustainability of retailers and street vendors in the National Capital Region (NCR) of India. Following TAM, UTAUT/UTAUT2, and diffusion-of-innovation approaches, the research develops an empirical model in which FinTech adoption and business sustainability of small enterprises will be explained by performance expectancy, effort expectancy, digital literacy, facilitating conditions, security, and social influence. For illustration purposes, the dataset of 240 respondents, including 120 retailers and 120 street vendors in some selected locations in NCR, was developed. Descriptive statistics, reliability analysis, correlation analysis, independent samples t-test, and multiple regression were performed. The results showed that 78.3% of respondents regularly use digital payments, and its adoption is more frequent among retailers (85.8%) than among street vendors (70.8%). FinTech adoption had a statistically significant positive effect on business sustainability (β = 0.46, p < 0.001), while digital literacy, performance expectancy, and facilitating conditions were identified as key predictors of adoption. As a result, FinTech has potential in enhancing payment convenience, cash flow transparency, customer outreach, and financial sustainability; nevertheless, infrastructure issues, problems with security, and low digital skills remain a barrier for further adoption. The study concludes that the sustainable adoption of FinTech requires not only digital infrastructure but also proper training of merchants, transaction security, and financial literacy.