This systematic literature review examines the social impact of paratransit from a micro-level perspective, offering insights into how this mode of transportation influences individuals' daily lives. Using the PRISMA methodology, 33 publications were identified following an iterative screening process. Five key themes emerged: Barriers, Safety and Risk Concerns, Gender and Socio-Economic Influences, Users' Opinions and Lived Experiences, and Travel Behavior - Influences and Determinants. The review reveals that paratransit services present significant challenges, particularly for the elderly and disabled, restricting autonomy and social inclusion. Although safety concerns and dissatisfaction with service reliability and cleanliness were common, these issues did not result in notable changes in travel behavior, as users frequently lacked viable alternatives due to financial constraints. Notably, most reviewed studies were conducted in the Global South, which may limit the generalizability of findings to high-income or Western contexts. The review emphasizes the need to address both basic and psychological needs to enhance positive social impact of paratransit, especially in regions where income inequality shapes transportation options. Additionally, standardizing terminology is crucial to ensure consistency in future research.