The Impact of Cashless Payment Adoption on Business Sustainability among Bottom of the Pyramid Micro Entrepreneurs

Dr. P. Jeyabharathy

Abstract: This study investigates the impact of cashless payment adoption on business sustainability among Bottom of the Pyramid (BoP) micro entrepreneurs in India. Drawing on the Technology Organization Environment (TOE) framework, we examine how relative advantage, perceived barriers, firm size, firm scope, and competition influence cashless payment adoption and its subsequent effect on business sustainability. Data was collected from 387 micro entrepreneurs operating in urban, semiurban, and rural areas of Tamil Nadu. Using Structural Equation Modelling Partial Least Square (SEMPLS) analysis, results indicate that perceived barriers, firm scope, firm size, and competition significantly influence cashless payment adoption. Furthermore, cashless payment adoption demonstrates a positive and significant relationship with business sustainability through enhanced financial inclusion. These findings highlight that adoption factors depend on supply chain position and entrepreneurial context. The study provides theoretical contributions to technology adoption literature and practical insights for FinTech companies targeting BoP merchants in emerging economies.

Keywords: Cashless payments, Business sustainability, Bottom of the Pyramid, Micro entrepreneurs, TOE framework, Digital payments, India