Giving money to shop beggars?

I think they do it for religious reasons. The shopkeepers probably believe they'll get the blessing of the beggars in return for the little money they donate, so their shops will prosper more. From what I've observed, the whole giving out money process is mechanical (automatic). The beggar comes in, the owner automatically reaches out to give money and the beggar is gone. Maybe that's also a way for them to push away the beggars which could scare away potential customers. There's no compassion involved; it's not like they genuinely want to help the beggar. It's a pretense where they think doing "good" will make karma reward them.

As for the beggars, they know they'll get money from selected shops. So it's become like a job for them. Why do hard work when you can go round visiting shops everyday and collect money. If you can visit 100 shops and get Rs10 from each, you're already making Rs1000 daily. You're way better off than the average person. Ever seen the beggar who refused Rs5 donation and said that's not going to get him anything? Even as a beggar, they are choosy.