India's coffee industry has experienced notable growth, fuelled by rising demand for specialty coffee and a thriving start-up culture. However, small coffee businesses continue to face challenges such as fierce competition, limited resources, and reliance on a cash-driven economy. This study examines the impact of digital payments on these small enterprises, focusing on key aspects like convenience, security, speed, data-driven insights, and reduced costs associated with cash handling. Utilizing a mixed-methods approach, the research integrates both quantitative and qualitative analyses. Primary data is gathered through structured surveys from 200-300 small coffee business owners and customers, complemented by in-depth interviews with 10-15 coffee shop owners. Additionally, secondary data from industry reports and case studies enriches the analysis. Statistical tools, including descriptive and inferential statistics, correlation analysis, and factor analysis, are employed for quantitative data, while thematic analysis interprets qualitative insights. The study reveals that digital payments significantly improve operational efficiency, enhance customer satisfaction, and boost revenue for small coffee businesses. Challenges such as digital literacy gaps, cyber security concerns, and infrastructural limitations remain. The findings recommend that small coffee businesses can optimize the benefits of digital payments by investing in digital literacy, addressing security issues, and leveraging data insights for informed decision-making.
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