An integrated framework for understanding innovative digital payment adoption and continued usage by small offline retailers

Traditional small retailers in India account for 85% of goods sold but have slowly adopted digital technology. Despite digital payments’ significant impact on customer satisfaction and policy, there is limited research on small retailers’ adoption of these technologies. This study examines the factors that influence both the initial adoption and continued use of innovative digital payment methods among small retailers in Emerging Markets (E.M.). Using a two-phase, mixed-method approach, this study validates the integrated technology adoption and continuance model proposed by the authors. Using data from India’s demonetization, which forced the rapid adoption of digital payments, the study examines the sustainability of crisis-induced technology adoption. The follow-up qualitative analysis explores retailers’ intention to continue using these digital payment methods. The findings reveal several factors influencing the adoption of digital payments, including perceived ease of use, social norms, perceived risks, and voluntariness. The study also highlights that younger merchants are innovative and embrace payment technologies. This research contributes insights to the existing literature on digital payment adoption among small retailers by constructing an integrated framework. The findings offer practical guidance to retailers, helping them to optimize operations and improve customer satisfaction while addressing security risks.