The Informal Economy and Street Vendors
UPI, QR Codes and the Digital Vendor
Digital payments spread quickly among vendors, creating financial records and easier saving, though not everyone benefits equally.
Even a small stall now often displays a payment QR code.
Adoption
UPI made it cheap for vendors to accept payments without a card machine.
Benefits
Digital records can help vendors qualify for loans and reduce cash-handling risk.
Limits
Some customers prefer cash, and poor connectivity can interrupt payments.
Data
Transaction data can help lenders assess creditworthiness.
A QR sticker
A tea seller with a QR code accepts payments from customers who carry no cash.
Assuming every vendor gains from digitisation
Some lack phones or reliable networks.
Key takeaways
- UPI made acceptance cheap.
- Digital records help access credit.
- Connectivity is a limit.
- Data supports lending.
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