From a Cash-heavy to a Cashless Economy: How UPI Is Revolutionizing Rural India’s Ease-of-doing Business

Abstract

Digital payments have emerged as the predominant payment method in India since the introduction of the unified payments interface (UPI) in 2016. This study investigates how this digital transformation has impacted the ease-of-doing business for people residing in rural India. We conduct a computational thematic analysis using a topic modelling technique to analyse unstructured feedback given by sole-ownership-type entrepreneurs operating in the unorganized labour market in rural India to identify the beneficial aspects of UPI on their businesses. The analysis reveals that UPI users appreciate the ease of transactions, unconstrained access to funds, wider reach of customers and transparent monetary transactions.