Author(s)
Bharti choudhary
- Manuscript ID: 140593
- Volume: 2
- Issue: 6
- Pages: 2100–2108
Subject Area: Management
Abstract
The rapid advancement of digital technology has significantly transformed the financial landscape in India by promoting the adoption of digital payment systems. Digital payment methods such as Unified Payments Interface (UPI), mobile wallets, internet banking, debit and credit cards, and QR-code-based transactions have become increasingly popular among consumers. However, the level of adoption and the challenges associated with digital payments differ considerably between urban and rural areas due to variations in infrastructure, digital literacy, internet accessibility, and consumer awareness.
The present study aims to examine the adoption and challenges of digital payment systems by analyzing consumer perception in urban and rural India. The study is based on primary and secondary data, with primary data collected from 100 respondents through a structured questionnaire using a five-point Likert scale. Multiple regression analysis was employed to investigate the impact of ease of use, perceived security, time saving, internet connectivity, convenience, and technical knowledge on digital payment adoption.
The findings reveal that ease of use, perceived security, time saving, internet connectivity, and convenience have a significant positive influence on digital payment adoption, whereas technical knowledge does not have a statistically significant impact. The regression model explains 62.9 percent of the variation in digital payment adoption, indicating strong explanatory power. The results further suggest that urban consumers demonstrate higher levels of digital payment adoption compared to rural consumers due to better technological infrastructure and awareness.
The study concludes that digital payment systems have substantial potential to promote financial inclusion and support India's transition towards a cashless economy. Strengthening digital infrastructure, enhancing cybersecurity measures, and improving digital literacy are essential for ensuring wider and more inclusive adoption of digital payment systems across both urban and rural regions of India.