The rapid expansion of digital payment systems has significantly transformed the business environment, particularly for small and medium-sized enterprises, by enhancing operational efficiency, transparency, and financial accessibility. Digital payments play a vital role in strengthening an inclusive financial ecosystem by reducing dependency on cash-based transactions and promoting formal financial practices among small-scale and middle- level businesses. In the Indian context, the adoption of digital payment platforms has emerged as a key driver of economic modernization and financial inclusion, aligning closely with national development priorities and the United Nations’ Sustainable Development Goals (SDGs).This study aims to examine the contribution of digital payment systems to business performance and economic development by analysing their impact on financial discipline, transaction efficiency, frequency of usage, and overall profitability of middle-level businesses. The research is based on primary data of 25 middle-level business persons, representing diverse sectors of small- scale commercial activity. The findings indicate that the integration of digital payments into routine business operations has improved record-keeping practices, reduced transaction time and costs, enhanced cash flow management, and increased customer convenience. The study concludes that strengthening digital payment infrastructure and promoting digital financial literacy among small-scale entrepreneurs can significantly enhance business sustainability and contribute to inclusive and resilient economic development.