International Journal of Science, Engineering and TechnologyAuthors: Dr.P.Janaki, Ms.K.Mounaarthi
Abstract: The rapid advancement of financial technologies and the proliferation of smart phones and internet connectivity have transformed the payment landscape in India. Digital payment systems, encompassing methods such as Unified Payments Interface (UPI), mobile wallets, internet banking, Aadhaar – enabled payments, and card-based transactions, have redefined the way individuals and businesses conduct financial activities. Supported by government initiatives like Digital India and Jan Dhan Yojana, along with regulatory frameworks from the Reserve Bank of India (RBI), digital payments have seen exponential growth in both urban and rural areas. These systems have not only enhanced convenience, transparency, and financial inclusion but have also played a crucial role in reducing reliance on cash and fostering a cashless economy. However, challenges such as cyber security risks, digital literacy gaps, and infrastructural disparities continue to hinder seamless adoption. This paper provides an overview of the evolution, adoption trends, benefits, and challenges of digital payment systems in India, highlighting their role in shaping the country’s transition towards a digitally empowered society and economy.
