INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XII, December 2025  
Impact of Fintech-Driven Changes on Informal Economic Sectors of  
Sabarkantha District – Journey From Paper to Paperless  
Dr. Hemali G. Broker, Dr. Harshita Vijaywargi, Dr. Mallika Babu, Dr. Sejal Acharya, Mr. Sankhala  
Smit Mukeshkumar  
LDRP – Institute of Technology & Resaerch, KSV, Gandhinagar  
DOI : https://doi.org/10.51583/IJLTEMAS.2025.1412000081  
Received: 15 December 2025; Accepted: 20 December 2025; Published: 07 January 2026  
ABSTRACT  
Technological advancements, particularly the widespread penetration of smartphones, have substantially  
accelerated the adoption of digital payment systems across both formal and informal segments of the economy.  
This shift towards electronic transactions has emerged as a critical driver of financial inclusion by enabling  
broader access to formal financial services. The present study investigates the impact of digital payment adoption  
on participants within the informal economy—specifically vegetable vendors, small retail shop owners, street  
vendors, and pan parlour operators—in the Sabarkantha district of Gujarat.  
Research Purpose: This study evaluates the socio-economic and systemic determinants facilitating the  
transition from traditional paper-based transactions to Fintech-driven paperless systems within the informal  
economic sector of the Sabarkantha district of Gujarat. It specifically examines how demographic variables  
influence the perception of legal, social, and technological risks.  
Research Methodology: A quantitative approach was employed, utilizing a structured survey administered to  
211 participants in the Sabarkantha region. Data were analyzed using Descriptive Statistics, Independent  
Samples T-tests, One-Way ANOVA, and Spearman’s Rho Correlation to test the relationships between  
demographic factors and digital payment adoption.  
Findings: The analysis reveals that while the transition is accelerated by younger demographics (64% aged 18–  
45), it is significantly moderated by education (p=0.003) and income level (p=0.003). Furthermore, a strong  
correlation exists between economic benefits and E-payment preference (rho value = 0.406); however, "Unsafe  
Technology" remains a significant psychological barrier to full-scale digital integration. The findings underscore  
that while technological innovation plays a pivotal role in transforming economic transactions, ensuring robust  
data protection mechanisms and enhancing digital literacy are essential for sustaining trust and promoting  
inclusive growth across informal economic sectors.  
Originality/Value: This research contributes to the "Digital Financial Inclusion" discourse by identifying the  
specific socio-economic friction points that impede the "Paper to Paperless" journey in emerging informal  
markets.  
Keywords: Fin-tech, Digital payments, informal economy, connectivity, COVID 19 pandemic, Economic  
benefits  
INTRODUCTION:  
Over time, money has served as the fundamental medium of exchange facilitating trade and commerce.  
Traditionally, cash has been the dominant mode of conducting business transactions; however, rapid  
technological advancements have increasingly transformed cash-based transactions into digital payment  
systemsi. From cash-based economy i.e., paper-based, India is transforming to cash-less economy; ie., paperless-  
economy. The government-led demonetization initiative catalyzed a substantial shift toward digital transaction  
practices.ii Our banks were working towards streamlining the process of digital payments through facilities like  
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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XII, December 2025  
Internet Banking, Digital Wallets, Real Time Gross Settlements (RTGS), Unified payment Interface (UPI),  
Immediate Payment Services (IMPS), National Electronic Fund Transfer (NEFT), and Mobile Banking. Digital  
wallet is assessable through mobile applications like BHIM, PayTM, PayPal, VISA, Google Pay, WhatsApp  
Pay.iii COVID-19 Pandemic led to an increase in the usage of such online payment systems leading to the entire  
touchless transactions which was available 24 X 7.iv The expansion of online transactions contributed to  
increased economic activity across both formal and informal sectors in India. Digital payment systems are widely  
perceived as convenient, secure, efficient, accurate, and user-friendly, leading to their adoption by a broad range  
of users, including schools, hotels, retail establishments, offices, as well as street vendors, vegetable sellers,  
small shopkeepers, and pan parlour operators. Against this backdrop, the present study examines the impact of  
digital payment adoption on businesses and individuals in the Sabarkantha district of Gujarat, with particular  
emphasis on legal, technological, and social dimensions.v  
LITERATURE REVIEW:  
Empirical evidence indicates that the adoption of electronic payment systems is shaped by multiple factors,  
including technical challenges/ unsafe technology, social acceptance, legal concerns, and levels of user  
awareness among both merchants and consumers. Ramadass, Ravichandran, and Sathyanarayana (2023)  
demonstrate that these determinants significantly influence digital payment usage, irrespective of users’ gender  
and educational background.vi  
Complementing this perspective, studies examining supply-side dynamics—encompassing economic, political,  
technological, and financial dimensions—highlight that the COVID-19 pandemic acted as a catalyst for  
increased digital payment adoption, while also revealing an urgent need for government-led initiatives to  
strengthen trust in electronic payment systems (Chakraborty & Mattoni, 2023).vii  
Further support is provided by Banerjee and Pradhan (2022), who, through an online survey of 386 Indian  
consumers, identify ease of use, perceived security, and accessibility as key antecedents of digital payment  
adoption. Their findings underscore that demographic characteristics, particularly gender and education,  
moderate users’ perceptions of utility and safety, thereby influencing adoption behavior. Collectively, these  
studies emphasize that while technological readiness is essential, sustained growth in digital payment adoption  
depends on institutional trust, user awareness, and inclusive policy frameworks.viii  
The growing body of literature on FinTech adoption in informal economic sectors underscores both the  
transformative potential of digital payment systems and the persistent structural barriers to their sustained use.  
Empirical evidence consistently demonstrates that demographic characteristics and institutional conditions play  
a pivotal role in shaping adoption behavior within informal markets. For instance, Mathews and Bhosale (2021),  
employing chi-square and correlation analyses, identify income, age, gender, and educational attainment as  
significant determinants of awareness and ease of use of digital payment systems among street vendors in urban  
India. While their findings highlight the role of digitalization in promoting financial inclusion, the study remains  
limited in its contextual focus on metropolitan regions, thereby overlooking rural and semi-urban heterogeneity.ix  
Extending this discourse, Pal et al. (2018) adopt a more critical lens by situating digital payment adoption within  
broader socio-economic and institutional frameworks. Their analysis reveals that limited access to formal  
banking, low technical proficiency, and deficits in trust substantially constrain the transition toward cashless  
transactions in rural informal economies. Importantly, the authors argue that FinTech initiatives, when  
implemented without addressing underlying socio-economic disparities, risk reinforcing existing inequalities  
rather than alleviating them. This perspective challenges technologically deterministic narratives and emphasizes  
the necessity of inclusive policy design.x  
Post-pandemic studies further refine this debate by documenting accelerated digital payment adoption alongside  
uneven diffusion. Gupta and Singhal (2021) report increased usage across both towns and villages following  
COVID-19; however, they note that low levels of awareness and education continue to impede widespread  
acceptance. Collectively, these studies suggest that while FinTech has catalyzed the shift from paper-based to  
paperless transactions in informal economic sectors, long-term adoption depends on strengthening digital  
literacy, institutional trust, and regulatory support. This literature highlights the need for integrative frameworks  
that combine technological innovation with socio-economic inclusion.xi  
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Evidence from the COVID-19 period highlights the accelerated acceptance of FinTech-enabled digital payment  
systems and their growing integration into everyday economic activity. Kamal, Raja, and Souparnika (2021)  
report that consumers perceived QR-code-based payment platforms such as Paytm, Google Pay, and Amazon  
Pay as secure and convenient during the pandemic, with Google Pay emerging as the most trusted application  
for routine digital transactions. These findings suggest that perceived safety and ease of use were critical drivers  
in normalizing paperless payments, particularly under conditions that restricted physical cash handling.xii  
Beyond user perceptions, the broader financial ecosystem has undergone a structural shift since the pandemic,  
positioning digital transactions as a core component of modern financial systems in India and globally. However,  
as digital payments are inherently dependent on internet connectivity and digital infrastructure, users—especially  
within informal economic sectors—remain vulnerable to cybersecurity threats and operational disruptions.  
Narsapur and Parasar (2020) emphasize that financial institutions continue to function as central intermediaries  
in digital transactions, bearing exposure to operational, legal, credit, reputational, and fraud-related risks, as  
outlined by the Reserve Bank of India. System vulnerabilities, including malware or server disruptions, can  
directly impede transaction reliability and user trust. Despite these risks, advancements in financial technology  
have enabled banks to enhance service efficiency and expand outreach to underserved populations.  
Consequently, FinTech-driven digital payment systems are increasingly leveraged as instruments of financial  
inclusion, facilitating the transition from paper-based to paperless transactions within informal economic sectors.  
This body of literature underscores that while technological innovation has accelerated adoption, sustained trust,  
cybersecurity resilience, and institutional safeguards remain essential for deepening digital financial  
integration.xiii  
Drawing on the extant literature, the present study examines the relationship between key demographic  
characteristics—namely gender, age, marital status, family size, educational attainment, occupation, and  
income—and the determinants influencing digital payment adoption in informal economic sectors. The  
determinants included are perceived safety and security, convenience, social acceptance, financial viability, and  
adaptability to digital technology. By analyzing the interaction between demographic attributes and FinTech-  
enabled payment factors, the study seeks to explain variations in the transition from paper-based to paperless  
transactions within the informal economy.  
Figure 1 illustrates the various factors influencing customer preferences for digital payment adoption in the  
Sabarkantha district  
Figure 1: Conceptual Framework  
RESEARCH METHODOLOGY:  
The objective of the study " Impact of Fintech-Driven Changes on Informal Economic Sectors – Journey From  
Paper to Paperless” in Sabarkantha District of Gujarat" is to assess the impact of digital payments on the informal  
economy in the Sabarkanthadistrict. The study will specifically examine the extent to which digital payments  
have been adopted by informal sector businesses in the district.The study has used a mixed-methods approach,  
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including a survey of informal sector businesses, interviews with key informants with the help of questionnaire,  
and a review of relevant literature.  
Sampling and Data Collection  
The study utilized a cross-sectional survey design. A sample of 211 respondents was selected from the informal  
sector to ensure a diverse representation of occupations (Private Job: 32%, Public Job: 27%, Self-employed:  
18%) and educational backgrounds.  
Variable Operationalization  
The research model evaluates four core dimensions as independent variables:  
Legal Factors: Perceived regulatory framework and government support.  
Unsafe Technology: Perceived risk of fraud and technological instability.  
Social Factors: Influence of family and peer acceptance.  
Economic Factors: Cost-benefit analysis of digital vs. cash transactions.  
Analytical Framework  
Data were processed using SPSS software. The analytical strategy was bifurcated into:  
Comparative Analysis: T-tests and ANOVA were applied to examine mean differences across demographic  
groups. This helped identify which segments (e.g., by education or income) were significantly more likely to  
adopt Fintech.  
Relational Analysis: Spearman’s Rho (rho value) was utilized to measure the monotonic relationship between  
user preference for E-payments and the four dimensions. This non-parametric test was selected due to the ordinal  
nature of the survey responses.  
Hypothesis statement  
H1: Demographic characteristics (age, gender, education, marital status, family size, monthly income,  
occupation) significantly influence the effect of legal, unsafe technology, social, and economic factors on digital  
payment preferences during fintech-driven transitions from paper-based to paperless processes in informal  
economic sectors.  
RESULTS AND DISCUSSION  
The provided text offers a preliminary interpretation of T-test and ANOVA results examining demographic  
influences on legal, unsafe technology, social, and economic factors in fintech adoption within informal  
economies.  
Table 1: Descriptive Statistics of Demographic Variables  
Demographic Variables  
Age  
Frequency  
Percentage  
18-25  
26-35  
36-45  
46  
66  
69  
22  
31  
33  
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46-55  
30  
41  
58  
39  
39  
34  
157  
54  
122  
89  
16  
46  
65  
46  
38  
37  
64  
54  
39  
17  
24  
25  
67  
57  
38  
14  
SSC & Below  
HSC  
19.4  
27.5  
18.5  
18.5  
16.1  
74.4  
25.6  
58  
Education  
Diploma  
UG  
PG & Above  
Male  
Gender  
Female  
Married  
Marital status  
Un-Married  
2
42  
7.6  
Number of family members  
3
21.8  
30.8  
21.8  
18.0  
17.5  
30.3  
25.6  
18.5  
8.1  
4
5
6 & Above  
Less Than 10000  
10001-30000  
30001-50000  
50001-70000  
70001 & Above  
Student  
Monthly income  
11  
Occupation  
Homemaker  
Private Job  
Public Job  
Self-Employed  
12  
32  
27  
18  
The demographic profile of 211 respondents in this study on the impact of fintech-driven changes on informal  
economic sectors reveals a sample well-suited to examining the transition from paper-based to paperless  
processes. Age distribution favored working-age adults (36-45 years: 33%, n = 69; 26-35 years: 31%, n = 66),  
indicative of digitally adaptive cohorts navigating fintech disruptions in informal economies. Educational  
diversity (HSC: 27.5%, n = 58; SSC & below: 19.4%) underscores varying readiness for paperless innovations  
among semi-skilled workers. Gender (males: 74.4%, n = 157) reflects informal sector male dominance,  
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potentially amplifying fintech adoption biases. Married respondents (58%) with nuclear families (4 members:  
30.8%, n = 65) and middle incomes (₹10,001-30,000: 30.3%) suggest household-level motivations for cost-  
efficient digital shifts. Occupationally, private (32%) and public jobs (27%) prevailed, positioning the sample to  
assess fintech's role in formalizing informal transactions.  
This profile enhances contextual validity for fintech's paperless journey in emerging informal sectors, though  
gender skew merits stratified analysis.  
Table 2: P-values for Comparison of Means  
P values of T test and ANOVA  
Dimensions/  
Demographic factors  
Legal  
Factors  
Unsafe  
Technology  
Social  
Factors  
Economical  
Factors  
0.841  
0.003  
0.837  
0.757  
0.320  
0.003  
0.032  
0.110  
0.013  
0.308  
0.677  
<0.001  
<0.001  
0.003  
0.878  
0.166  
0.290  
0.026  
0.042  
0.388  
0.026  
0.292  
0.780  
0.423  
0.374  
<0.001  
0.004  
0.223  
Age  
Education  
Gender  
Marital status  
No. of family members  
Monthly income  
Occupation  
The above table shows the difference among various demographic factors for the various variables considered  
for the research. T test was carried out for Gender and marital status and one way ANOVA was done for rest of  
remaining demographic factors.  
ANOVA and t-tests are the statistical tests applied to analyze the significant difference or relationship between  
the demographic variables age, educational qualification, gender, marital status, no. of family members, monthly  
income and occupation are compared in relation with technological, economic, social and legal factors. These  
p-values help to assess the significance of the difference in the level of influence of various factors on customer  
preference among different demographic groups. A p-value less than 0.05 is often considered statistically  
significant, indicating that there is a difference.  
Hypothesis: Demographic characteristics (age, gender, education, marital status, family size, monthly income,  
occupation) significantly influence the effect of legal, unsafe technology, social, and economic factors on digital  
payment preferences during fintech-driven transitions from paper-based to paperless processes in informal  
economic sectors.  
Age: Failed to reject null hypothesis across all dimensions (legal: p = 0.841; unsafe technology: p = 0.110;  
social: p = 0.878; economic: p = 0.292), confirming homogeneous fintech perceptions irrespective of age.  
Education: Rejected null for legal (p = 0.003) and unsafe technology (p = 0.013) factors, with SSC/below  
exhibiting highest means; failed to reject for social (p = 0.166) and economic (p = 0.780) factors.  
Gender: Failed to reject null across all dimensions (all p > 0.05), indicating equivalent influences. Legal (p =  
0.837), unsafe technology (p = 0.308), social (p = 0.290) and economical factors (p = 0.423); are influencing  
the user’s point of view on their usage of e-payments.  
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Marital status: Rejected null for social factors (p = 0.026), driven by married respondents (n = 122); failed to  
reject for legal (p = 0.757), unsafe technology (p= 0.677), and economic (p = 0.374) factors. It signifies that  
these affect the decision of using e-payments.  
Family size: Rejected null for unsafe technology (p < 0.001), social (p = 0.042), and economic (p < 0.001)  
factors, with ≥ 6-member households showing highest means; failed to reject for legal factors (p = 0.320). Family  
members are the ones who are usually influencing the respondents to use the digital payments. Especially, during  
the phase of COVID-19, online payment was the most safest and accepted for the family members.  
Monthly income: Rejected null for legal (p = 0.003), unsafe technology (p < 0.001), and economic (p = 0.004)  
factors; hence, these factors affect the preference in informal economy for using the digital payment. While it  
is not significantly associated with social factors and hence failed to reject for social (p = 0.388).  
Occupation: Rejected null for legal (p = 0.032), unsafe technology (p = 0.003), and social (p = 0.026) factors;  
failed to reject for economic factors (p = 0.223).  
These results identify key socioeconomic factors in the paper-to-paperless transition within informal economies,  
especially in Sabarkantha district.  
Spearman’s Rho Correlation Coefficient Test:  
To examine the association between users’ preference for digital payments and the key factors influencing the  
transition from cash-based to paperless transactions in the informal economy, Spearman’s rho correlation  
analysis was employed. This non-parametric statistical technique is appropriate for ordinal and continuous data  
and enables assessment of both the direction and strength of relationships among the variables under  
investigation.  
Spearman’s rho coefficient ranges from −1 to +1, where values approaching +1 indicate a strong positive  
association, values approaching −1 indicate a strong negative association, and values close to zero signify the  
absence of a meaningful relationship.  
The correlation matrix presents the Spearman’s rho coefficients between the statement “I prefer to perform E-  
payment rather than going to the bank” and the identified influencing factors—legal factors, unsafe technology  
factors, social factors, and economic factors—along with their respective significance levels.  
Table 3: Spearman’s Rho Correlation Coefficient  
I prefer to  
perform  
E-  
payment  
Rather  
Unsafe  
than going Legal  
technology Social  
Economic  
Factors  
to bank  
Factors  
Factors  
Factors  
Spearman's  
rho  
I prefer to Correlation  
perform E- Coefficient  
payment  
1.000  
0.285**  
0.365**  
0.315**  
0.406**  
Sig.  
tailed)  
(2-  
<0.01  
1.000  
<0.01  
<0.01  
<0.01  
Rather than  
going  
bank  
to  
Legal  
factors  
Correlation  
Coefficient  
0.285**  
0.295**  
0.198**  
0.120  
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Sig.  
tailed)  
(2-  
<0.01  
0.365**  
<0.01  
<0.01  
0.004  
0.270**  
<0.01  
1.000  
0.082  
0.289**  
<0.01  
Unsafe  
Technology  
Factors  
Correlation  
Coefficient  
0.295**  
<0.01  
0.198**  
0.004  
1.000  
Sig.  
tailed)  
(2-  
Social  
Factors  
Correlation  
Coefficient  
0.315**  
<0.01  
0.270**  
<0.01  
0.484**  
<0.01  
Sig.  
(2-  
tailed)  
Economic  
Factors  
Correlation  
Coefficient  
0.406**  
<0.01  
0.120  
0.289**  
<0.01  
0.484**  
<0.01  
1.000  
Sig.  
(2-  
0.082  
tailed)  
Association between E-payment Preference and Influencing Factors  
The findings reveal a statistically significant positive relationship between preference for e-payment and all four  
influencing factors at the 1 per cent level of significance (p < 0.01, n = 211). A weak positive correlation is  
observed between preference for e-payment and legal factors (p = 0.285), indicating that the presence of  
supportive legal frameworks, regulatory clarity, and institutional trust moderately enhances users’ inclination  
towards adopting digital payment systems.  
A moderate positive correlation is identified between preference for e-payment and unsafe technology factors (p  
= 0.365). This suggests that despite apprehensions related to technological safety and security, users continue to  
demonstrate a growing preference for digital payment modes, reflecting increasing dependence on fintech-  
enabled solutions within the informal economic sector.  
Further, a weak positive correlation is observed between preference for e-payment and social factors (p = 0.315),  
implying that social influence, behavioural norms, and peer acceptance contribute to the adoption of digital  
payment mechanisms. Economic factors exhibit the strongest association with preference for e-payment (p =  
0.406), signifying that considerations such as cost efficiency, ease of transactions, time savings, and financial  
incentives play a substantial role in motivating users to shift from traditional banking practices to digital payment  
platforms.  
Interrelationships among Influencing Factors  
An examination of the interrelationships among the influencing factors provides additional insights into the  
dynamics of digital payment adoption. Legal factors demonstrate a weak positive correlation with unsafe  
technology factors (rho value = 0.295) and preference for e-payment (rho value = 0.285), while their association  
with social factors (rho value = 0.198) and economic factors (rho value = 0.120) remains very weak and  
statistically insignificant. This indicates that while legal considerations are moderately linked with perceptions  
of technological safety, they exert minimal influence on social and economic determinants.  
Unsafe technology factors show weak positive correlations with legal factors (rho value = 0.295), social factors  
rho value = 0.270), and economic factors (rho value = 0.289). These results suggest that concerns related to  
technological risks are interconnected with legal safeguards, social trust, and economic considerations; however,  
such concerns do not substantially deter users from adopting digital payment systems. Strengthening  
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cybersecurity measures and enhancing technological reliability may further reinforce user confidence and  
accelerate fintech adoption in informal markets.  
Social factors exhibit a moderate positive correlation with economic factors (rho value = 0.484), highlighting a  
strong interaction between social influence and economic motivation in shaping payment preferences. This  
relationship underscores the role of collective behaviour, social endorsement, and community-driven acceptance  
in reinforcing economically motivated decisions towards digital payment adoption.  
Implications for Fintech-Driven Transformation in the Informal Economy  
The findings indicate that digital payments gained widespread acceptance during the COVID-19 pandemic, with  
no statistically significant gender differences observed in overall adoption levels. However, notable gender-  
based differences were identified in terms of confidence and perceived security. Male respondents reported  
higher levels of comfort and trust in digital payment systems, whereas female respondents expressed greater  
concerns regarding data privacy, security risks, and consistent access to digital platforms. Age was also found  
to influence attitudes toward digital payment usage. Younger respondents demonstrated a higher propensity to  
adopt digital transactions, attributing their preference to greater technological familiarity and ease of use. In  
contrast, older participants exhibited more cautious and varied responses, emphasizing the need for clearer legal  
frameworks, regulatory awareness, and external support to facilitate confident usage within the informal  
economy.  
Educational attainment further shaped digital payment behavior. Respondents with higher levels of education  
showed greater engagement with digital financial tools, while simultaneously expressing heightened awareness  
of cybersecurity risks and concerns related to the safety of e-wallets.  
Overall, the results provide robust empirical evidence that fintech-driven changes significantly influence the  
transformation of informal economic sectors from paper-based to paperless transactions. Economic and  
technological factors emerge as the most influential determinants, supported by social acceptance and reinforced  
by legal frameworks. The statistically significant positive correlations confirm that these factors collectively  
function as critical enablers of digital payment adoption.  
Accordingly, the findings substantiate the study’s hypothesis that legal, technological, social, and economic  
factors act as key influencers in the acceptance and diffusion of digital payment systems within the informal  
economy, thereby facilitating the ongoing journey from traditional cash-based practices to fintech-enabled  
financial inclusion.  
CONCLUSION:  
The paradigm shift from traditional fiduciary habits to Fintech-mediated formalization marks a critical evolution  
in the informal economic sector. This study provides empirical evidence that the transition—the journey from  
"paper to paperless"—is a multi-dimensional process governed by a complex interplay of demographic  
moderators and perceived technological risk.  
Synthesis of Empirical Findings  
Digital payments have emerged as an essential requirement in the contemporary financial landscape, particularly  
with rapid technological advancements and heightened health-related concerns following the COVID-19  
pandemic. These factors have significantly accelerated the adoption of digital transactions, even within informal  
economic sectors. Banking institutions have actively promoted digital payment systems to enhance accessibility  
and support the broader objective of financial inclusion. However, customers’ acceptance of digital payments  
continues to be shaped by multiple interrelated factors, including legal, social, economic, and unsafe  
technological considerations.  
The inferential analysis reveals that demographic variables such as education, occupation, monthly income, and  
family size significantly influence perceptions of legal, technological, social, and economic factors related to  
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digital payments. The research concludes that while Technological Leapfrogging is evident among the younger,  
economically active demographic (64% aged 18–45), the "Digital Divide" remains prominent. The inferential  
analysis identifies Education (p = 0.003) and Monthly Income (p = 0.003) as the primary determinants of Digital  
Payment Adoption (DPA). These variables act as critical filters through which users evaluate the security and  
legal legitimacy of digitized financial architectures. Higher socio-economic standing correlates with a reduced  
perception of technological insecurity, thereby facilitating a smoother transition toward a cashless state.  
Theoretical and Practical Implications  
The Spearman’s Rho Correlation results (rho value = 0.406, p < 0.01$) underscore that economic utility is the  
most potent driver for abandoning paper-based transactions. However, the persistence of a "trust deficit"  
regarding Electronic Fiduciary Interfaces prevents full-scale integration. This suggests that the informal sector’s  
preference for traditional banking is a rational response to perceived systemic vulnerabilities rather than a  
rejection of innovation.  
Strategic Recommendations  
For Digital Financial Inclusion (DFI) to become a sustainable reality, stakeholders must move beyond  
technological deployment to expand digital payment usage in Sabarkantha’s informal sector. Policymakers  
should prioritize the stabilization of Regulatory Frameworks and enhance localized cybersecurity awareness to  
mitigate perceived technological risk. By addressing these socio-technical barriers, the informal sector can  
successfully complete its transition into a transparent, paperless, and digitally resilient ecosystem.  
Overall, the study highlights substantial potential By addressing technological safety concerns and strengthening  
legal and social support systems, policymakers and financial institutions can foster greater adoption, thereby  
integrating more individuals into the formal financial system and advancing the transition towards a paperless  
economy.  
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