Cashless Confidence: Gen Z, Digital Payments, and the Future of Local Indian Businesses

Dr. Devendra Kumar Tiwari1, Dr. Aparna Shukla2

1Principal, United Institute of Management (FUGS), Prayagraj, Uttar Pradesh, India, dktiwari@united.ac.in Orcid id: 0009-0004-1408-0248

2Assistant Professor, United Institute of Management (FUGS), Prayagraj, Uttar Pradesh, India,  aparnaashukla02@gmail.com  Orcid id: 0000-0001-7443-1055

Abstract

The continued emergence of Generation Z (Gen Z), a cohort of digital natives, that are transforming business and consumer behavior, has been the driving force behind the continued transformation of the Indian financial ecosystem. Gen Z can be summed up as their fondness for mobile devices and lack of reliance on cash. As a result, they are using digital payment methods extensively which has important ramifications for the long-term viability of local businesses and economic expansion. The technological and regulatory factors affecting adoption of digital payments are the focus of current research; however, there is not much insight into Gen Z's behavioral and experiential aspects. This study examines the impact of Ease of Use, Trust, Perceived Security and Government Support Awareness on Local Business Growth. It further elaborates on the mediating role of Customer Experience in these relationships. The research tries to capture both structural and experiential results of Gen Z's payment behaviors using a mixed method approach incorporating mediation modeling and quantitative survey analysis. The research highlights for further theoretical research on the digital finance behavior and also brings some insights for policy makers and entrepreneurs to leverage the Gen Z digital engagement in strengthening India's local economy.

Keywords: Generation Z, Digital payments, Unified Payments Interface (UPI), Local business growth.