The Role of Digital Literacy in Cashless Transactions Among Consumers: A Rajasthan Case Study

This study explores how digital literacy influences the acceptance and efficiency of cashless transactions among consumers in Rajasthan. The Indian government’s robust commitment to a digital economy means that the effectiveness of initiatives such as UPI, mobile banking, and digital wallets is significantly reliant on consumers' capacity to comprehend and guide through digital financial tools. This investigation employs a mixed-method approach to explore the impact of digital literacy levels on transaction behaviour, consumer confidence, and preferences for cashless payment methods. Data gathered from urban and rural participants throughout Rajasthan reveal notable differences in usage, primarily linked to digital literacy, access to infrastructure, and confidence in technology. The results indicate that increased digital literacy correlates with a higher frequency of cashless transactions, whereas deficiencies in education, internet accessibility, and cybersecurity knowledge impede wider acceptance. The study highlights the significance of focused digital literacy initiatives and robust infrastructure to address these disparities, particularly in semi-urban and rural areas. The findings provide essential information for decision-makers, financial institutions, and technology innovators focused on promoting financial inclusion and advancing the transition to a cashless economy.