Reconfiguring Cash Culture through a Primary Investigation of Digital Payment Transitions in South Tamil Nadu’s Retail and Domestic Economies

Abstract

This study explores the evolving landscape of digital payment adoption among households and retailers in South Tamil Nadu after India's 2016 demonetisation policy. Grounded in Cultural Lag Theory, this study investigates how traditional financial habits, cultural resistance, and forced digital adoption influence sustained digital payment usage. Using a quantitative research design and stratified sampling technique, primary data were collected from 300 respondents across urban, semi-urban, and rural areas. The results reveal that even culturally entrenched cash practices and initially compelled digital behaviours can evolve into long-term digital engagement when supported by trust and contextual adaptation. Regression and mediation analyses confirmed that Digital Trust plays a significant mediating role in transforming reluctant or forced users into consistent adopters. The findings highlight the importance of trust building, culturally contextual interventions, and post-adoption support in enhancing financial inclusion. This study contributes to the emerging literature by applying a sociological lens to digital payment behaviour in the Indian context.