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Digital Payment Diffusion, Working Capital Asynchrony, and Infrastructure Friction in Grassroots Micro-retail: Empirical Evidence from a Semi-urban Industrial Cluster in Central India

Author

Listed:
  • Aditya Raj Gupta

    (Department of Commerce, Shaheed Veer Narayan Singh Government College, Jobi-Barra, Kharsia, Raigarh, Chhattisgarh, 496665, India.)

  • Ravindra Kumar Thawait

    (Department of Commerce, Shaheed Veer Narayan Singh Government College, Jobi-Barra, Kharsia, Raigarh, Chhattisgarh, 496665, India.)

Abstract

Aims: The rapid digitisation of retail settlements through real-time payment (RTP) infrastructures such as the Unified Payments Interface (UPI) is transforming micro-enterprises across developing economies. However, informal micro-merchants in semi-urban industrial nodes often experience structural friction between front-end digital adoption and back-end cash settlement imperatives. This study examines point-of-sale digital adoption patterns, operational infrastructure bottlenecks, and working capital liquidity friction among informal micro-vendors. Study Design: Cross-sectional empirical survey design. Place and Duration of Study: Four commercial market corridors (Kosabadi, Transport Nagar, Niharika, Old Bus Stand) in Korba District, Chhattisgarh, India, from March to May 2026. Methodology: Primary data were gathered from N = 200 informal micro-merchants using a structured, bilingual instrument administered face-to-face. Analytical techniques included non-parametric Likert diagnostics, Friedman's ANOVA with post-hoc Wilcoxon signed-rank tests, Pearson's Chi-Square (χ²), Fisher's exact test, and bivariate binary logistic regression. Results: Point-of-sale digital adoption reached 81.5% (n = 163). Digital acceptance exhibited a statistically significant positive association with reported customer footfall expansion (χ²(1, N = 200) = 18.461, p < .001, Cramer's V = 0.304; Fisher's Exact Test p < .001; OR = 4.46, 95% CI [1.98, 10.05], p < .001). However, micro-merchants faced working capital liquidity mismatches because upstream wholesale inventory replenishment at Mandis remains strictly cash-dependent. Cellular network congestion during evening windows (Mean = 4.42 ± 0.68, Median = 5.0) and payment verification uncertainty among static QR operators (Mean = 3.85 ± 0.89, Median = 4.0) imposed substantial operational friction. Conclusion: Front-end retail digitisation without matching upstream wholesale integration creates operational vulnerabilities and working capital friction. Sustainable inclusion requires wholesale digital clearing desks, subsidised verification audio hardware, and telecommunication upgrades.

Suggested Citation

  • Aditya Raj Gupta & Ravindra Kumar Thawait, 2026. "Digital Payment Diffusion, Working Capital Asynchrony, and Infrastructure Friction in Grassroots Micro-retail: Empirical Evidence from a Semi-urban Industrial Cluster in Central India," Post-Print hal-05748956, HAL.
    • Handle: RePEc:hal:journl:hal-05748956
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