IMPACTS OF DIGITAL PAYMENTS ON THE PROFITABILITY AND SALES VOLUME OF RETAIL SHOPS IN KATHMANDU

Abstract

This study highlights the revolutionary potential of digital payments in the changing retail landscape by examining their effects on sales volume and profitability in retail establishments. The results demonstrate a strong correlation between enhanced financial performance and the use of digital payment methods. Increased customer happiness, lower cash handling expenses, and improved operational efficiency are all advantages for retailers using digital payments, and these all add up to profitability. Furthermore, the study finds a positive relationship between higher sales volume and the use of digital payments, which may be ascribed to elements like quicker transactions, less dependence on cash, and enhanced customer convenience. The study carries on to examine how important infrastructure, technology, consumer perception, and legal frameworks are to the effective implementation of digital payments. The most important of these is consumer perception, with infrastructure and legal backing guaranteeing dependability, accessibility, and security. All of these factors work together to build user trust and encourage broad adoption. According to the study's findings, shops looking to improve their financial performance and competitiveness must strategically embrace digital payments, which go beyond simple technological advancements. Retailers can reach a larger, tech-savvy consumer base and set themselves up for long-term success in an increasingly cashless market by adopting digital payments.