International Journal of Science, Engineering and TechnologyAuthors: Dr.P.Venkataraman
Abstract: India’s digital payment system has transformed rapidly in the last decade due to technological innovations, supportive regulations, and changes in consumer habits. Among various modes, the Unified Payments Interface (UPI) has been the primary driver, representing more than four-fifths of retail digital payments in FY 2023–24 and projected to cross nine-tenths by FY 2028–29. Credit card penetration has expanded considerably, whereas debit card usage has shown a downward trend, reflecting a shift in consumer preference. Merchant acceptance networks, supported by QR codes and innovative payment solutions, are spreading to semi-urban and rural regions. The COVID-19 crisis pushed consumers towards contactless transactions, though gaps in infrastructure, security risks, and limited awareness remain barriers. This study examines the growth trajectory of India’s digital payments, explores consumer behaviour during and after the pandemic, and evaluates new opportunities such as cross-border payments and fintech partnerships. The overall assessment suggests that while some challenges persist, the long-term outlook for digital payments in India remains robust, contributing to financial inclusion and the move toward a less-cash economy
DOI: http://doi.org/10.5281/zenodo.17092538
