Digital Payments Revolution in India: Adoption Drivers, Behavioural Shifts, and Policy Implications

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Auteurs principaux: Kriti Chhetri, Dr. Renuka S
Format: Recurso digital
Langue:anglais
Publié: Zenodo 2026
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author Kriti Chhetri
Dr. Renuka S
author_facet Kriti Chhetri
Dr. Renuka S
contents <p class="MsoNormal"><span>India's financial ecosystem has undergone an unprecedented transformation between 2018 and 2023, driven by the Unified Payments Interface (UPI), the Pradhan Mantri Jan Dhan Yojana (PMJDY), and the post-demonetisation policy impetus toward a cashless economy. This study employs a quantitative research methodology—drawing on primary survey data (n = 74) and secondary data from the Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI)—to examine digital payment adoption, its behavioural consequences, and its market-structural effects. Using chi-square tests of independence, Likert-scale analysis, and cross-tabulation techniques, the study establishes a statistically significant association between occupation and digital payment usage frequency (χ² = 18.597, p = 0.0049), while finding that age, income level, and perceived convenience operate independently of demographic stratification. Key findings confirm that 86.5% of respondents use digital payments daily, 85.1% perceive reduced cash dependency, and 82.4% report high convenience. Google Pay commands 55.4% of primary platform usage in the sample, reflecting its interface advantages and UPI integration depth. Despite widespread adoption, 81.1% of users have encountered service disruptions, with transaction failure (37.8%) and network problems (23.0%) as the most prevalent issues. The study offers actionable recommendations for regulators, fintech operators, and policymakers, emphasising the imperatives of digital literacy, security infrastructure, and adaptive regulatory frameworks to sustain India's digital payment trajectory equitably and securely. </span></p>
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spellingShingle Digital Payments Revolution in India: Adoption Drivers, Behavioural Shifts, and Policy Implications
Kriti Chhetri
Dr. Renuka S
Digital Payments
UPI
Financial Inclusion
Consumer Behaviour
Fintech India
Payment Adoption
<p class="MsoNormal"><span>India's financial ecosystem has undergone an unprecedented transformation between 2018 and 2023, driven by the Unified Payments Interface (UPI), the Pradhan Mantri Jan Dhan Yojana (PMJDY), and the post-demonetisation policy impetus toward a cashless economy. This study employs a quantitative research methodology—drawing on primary survey data (n = 74) and secondary data from the Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI)—to examine digital payment adoption, its behavioural consequences, and its market-structural effects. Using chi-square tests of independence, Likert-scale analysis, and cross-tabulation techniques, the study establishes a statistically significant association between occupation and digital payment usage frequency (χ² = 18.597, p = 0.0049), while finding that age, income level, and perceived convenience operate independently of demographic stratification. Key findings confirm that 86.5% of respondents use digital payments daily, 85.1% perceive reduced cash dependency, and 82.4% report high convenience. Google Pay commands 55.4% of primary platform usage in the sample, reflecting its interface advantages and UPI integration depth. Despite widespread adoption, 81.1% of users have encountered service disruptions, with transaction failure (37.8%) and network problems (23.0%) as the most prevalent issues. The study offers actionable recommendations for regulators, fintech operators, and policymakers, emphasising the imperatives of digital literacy, security infrastructure, and adaptive regulatory frameworks to sustain India's digital payment trajectory equitably and securely. </span></p>
title Digital Payments Revolution in India: Adoption Drivers, Behavioural Shifts, and Policy Implications
topic Digital Payments
UPI
Financial Inclusion
Consumer Behaviour
Fintech India
Payment Adoption
url https://doi.org/10.5281/zenodo.19947996