The Post-Covid Digital Leap: The Case of mobile wallet adoption in informal economy

Abstract

This study investigates the adoption of mobile wallets in the Indian informal sector after the COVID-19 pandemic, contrasting global digital payment trends with localized challenges. The study focused on integrating the framework of the Technology Acceptance Model (TAM), Diffusion of Innovation Theory (DIT), and Unified Theory of Acceptance and Use of Technology (UTAUT). Where a sample of 650 informal workers (vendors and daily wage earners) across 3 Indian states (Uttarakhand, Gujarat, and Maharashtra) was collected and SEM modelling was applied through R studio. Findings of this study revealed that perceived usefulness and social influence significantly drive adoption, while infrastructural barriers (internet access, smartphone literacy) and distrust in digital systems hinder uptake. The informal sector prioritizes immediate liquidity and cash compatibility, which can be solved through the development of indigenous applications with customized interfaces supported by vernacular mediums. This study emphasizes the necessity of context-specific policies for financial inclusion in cash-dependent sectors.