Abstract

India''s push toward digital payments, accelerated by the 2016 demonetisation, has framed Unified Payments Interface adoption as a marker of financial empowerment. Using survey data from 328 rural entrepreneurs in Kerala, this paper suggests that UPI adoption is more accurately understood as a fear-driven protective response. Drawing on Protection Motivation Theory, the study finds that UPI adoption is driven by fear of losing customers, general self-efficacy, and UPI-specific efficacy. Demographic characteristics including gender, age, education, and prior business failure do not affect the UPI adoption. Negative moderation effect of risk-taking ability on the relationship between UPI adoption and revenue growth indicates that lack of solid plan yields less revenue gains. While digital efficacy drives adoption, risk-taking functions as a mediator that weakens the link between self-efficacy and revenue growth. The study offers critical insights for policymakers designing digital inclusion strategies for the rural informal sector.

Authors

Sreerag Rajan, Ranjany Sundaram, Snehal Shetty
Amrita Vishwa Vidyapeetham, Amritapuri, India

Keywords

Digital Payments, UPI, Rural Entrepreneurship, Protection Motivation Theory, Digital Self-Efficacy