Authors: Associate Professor Dr.Punitha G, Professor Dr. Shobha B. Hangarki
Abstract: UPI can be viewed as a disruptive technology in India's digital economy, which holds the poten-tial to positively contribute to the growth of small businesses. In this context, this research paper attempts to analyze the economic effects of UPI usage on MSMEs using quantitative methods. The data used includes information regarding transaction volumes, financial performance indica-tors, and indicators of financial inclusion based on surveys conducted among 192 informal ven-dors in Bangalore and 10,000 MSMEs in the country. Using regression analysis and forecasting using ARIMA models, we explore the connection between the intensity of UPI adoption and its effects on the economic performance of small businesses. According to our results, businesses using UPI report an increase in profits by 34.2%, while high levels of UPI usage in district areas are linked to a fourfold increase in business loans.
