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DOI: https://doi.org/10.63345/ijrhs.net.v14.i10.1
Prof. Manmeet Kumar Siras
Professor, Faculty of Commerce,
M.M.H. (PG) College, Ghaziabad
https://orcid.org/0009-0006-0779-8125
Shyam Pandey
Research Scholar
Faculty of Commerce,
M.M.H. (PG) College, Ghaziabad
https://orcid.org/0009-0008-4864-0089
Abstract— The advent of financial technology (FinTech) has revolutionized the delivery of financial services by making it possible for small businesses and informal firms to obtain digital payments, mobile banking, digital credit, insurance, savings, and other financial services in a relatively low-cost manner. Retailers and street vendors make up an important portion of the informal economy in urban India; however, traditionally, they faced various challenges such as cash dependence, difficulty obtaining formal credit, poor financial record keeping, and insufficient access to banking services. In this research, I explore the potential benefits of FinTech services as they pertain to financial inclusion and the business performance of small retailers and street vendors. The research methodology entails a structured quantitative survey of 300 micro-entrepreneurs from the National Capital Region, which includes 150 small retailers and 150 street vendors. FinTech adoption will be gauged using UPI, mobile banking, digital wallets, digital lending, and other FinTech services. Financial inclusion will be evaluated in terms of access to formal accounts, savings, credit, insurance, and digital transactions, while business performance will be measured in terms of improvements in sales, efficiency of transactions, customer base, profitability, and financial record keeping. The results indicate that 82.0% of the surveyed individuals routinely accept digital payments and that there is a correlation between FinTech adoption, financial inclusion, and business performance. It is shown via regression analysis that FinTech adoption predicts financial inclusion significantly (β = 0.61, p < 0.001), while financial inclusion predicts business performance significantly (β = 0.48, p < 0.001). FinTech adoption itself has a positive impact on business performance (β = 0.29, p < 0.001). The results indicate that FinTech adoption may help formalize and sustain micro-enterprises, though issues such as digital illiteracy, cybersecurity problems, poor connectivity, and lack of access to digital credit cannot be ignored.
Keywords— FinTech, financial inclusion, digital payments, UPI, retailers, street vendors, business performance, micro-enterprises, digital financial services, India
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