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In large metro cities, use of debit and credit cards is widespread online and offline also. However in small towns, credit and debit card payment offline is more expensive , due to additional processing charges of 1 percent or more, so for a person with limited funds, it is better to make cash payment.
The number of people transacting at a particular store, in a small town with a population less than 24000 , will be fairly low, so the cost of processing the transaction will be higher compared to a metro city with a population of millions
Network, processing equipment problems are also widespread in small towns , so almost everyone is preferring cash payment, especially for low value transactions.