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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM63329
Volume:
10 |
5 |
May 2026
Pages:
1-8
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
MultiDisciplinary
Independent Researcher
MultiDisciplinary
Independent Researcher
The way financial transactions are conducted in India has significantly changed as a result of digital payment platforms. Today, many people utilize services like UPI, mobile wallets, credit and debit cards, and net banking to pay their bills, transfer money, and shop online. Different segments of society have varying rates of adoption and frequent use of various digital payment systems, notwithstanding their accessibility. A major determinant of this disparity is the degree of digital literacy. This study uses secondary data sources to investigate how digital literacy affects the uptake and use of digital payment systems The study is based on an examination of available reports from the Reserve Bank of India, government publications, national surveys, and pertinent academic studies on digital skills and transaction trends. The study identifies patterns tying digital literacy to payment behavior by evaluating statistics on internet availability, Smartphone usage and transaction growth across multiple locations. According to the data, people with more digital and technological skills are more likely to adopt and use UPI, mobile wallets, credit cards, debit cards, and net banking services. Digital literacy boosts confidence in doing online transactions and raises awareness of security precautions. In contrast, insufficient digital abilities frequently lead to hesitancy and decreased engagement in digital financial operations. The study finds that improving digital literacy is vital to increase digital payment adoption and improve financial inclusion in India.
KEYWORDS
The study examined the impact of digital literacy on the adoption and usage of digital payment systems in India using secondary data from RBI reports, government publications, surveys, and academic research from 2020 to 2025. The findings show that digital literacy, awareness level, and confidence in using technology play a key role in influencing digital financial behavior among users. The results indicate a strong positive relationship between digital literacy and digital payment adoption. Data from RBI reports and payment system statistics show a continuous increase in digital transactions in India between 2020 and 2025. The growing use of digital payment methods such as UPI, mobile wallets, debit cards, credit cards, and net banking reflects the shift toward a digital economy. People with better digital knowledge feel more comfortable performing online transactions and managing digital financial services. The study also found that awareness about digital payment security and transaction processes increases user confidence and encourages frequent usage of digital platforms. At the same time, several challenges still exist, such as lack of digital skills, fear of cyber fraud, technical issues, and network connectivity problems, especially in rural and semi-urban areas. These challenges often slow down the adoption of digital payment systems among less technologically literate users. Overall, the study concludes that digital literacy is an important factor in promoting digital payment adoption and financial inclusion in India. Strengthening digital awareness programs and improving digital infrastructure can further support the growth of digital financial services in the country.
1. Reserve Bank of India. (2025). Digital payment ecosystem and transaction trends report. Reserve Bank of India 2. National Payments Corporation of India. (2024). UPI transaction statistics and digital payment data. National Payments Corporation of India 3. Reserve Bank of India. (2024). Digital payments index (RBI-DPI) report. Reserve Bank of India 4. Ministry of Electronics and Information Technology. (2024). Digital India programme progress report. Ministry of Electronics and Information Technology 5. Telecom Regulatory Authority of India. (2024). The Indian telecom services performance indicators. Telecom Regulatory Authority of India 6. Sahoo, D. K., Patnaik, B. C. M., & Satpathy, I. (2024). Adoption of Unified Payment Interface (UPI): A literature review. International Journal of Research in Commerce and Management. 7. Gupta, A., & Tiwari, A. (2024). Adoption and challenges of digital payments in rural India. International Journal of Advanced Research in Management and Technology. 8. Ministry of Electronics and Information Technology. (2023). Digital literacy mission annual report. Ministry of Electronics and Information Technology 9. Telecom Regulatory Authority of India. (2023). Annual report on internet subscribers in India. Telecom Regulatory Authority of India 10. Reserve Bank of India. (2023). Annual report: Payment and settlement systems. Reserve Bank of India
Publication Date
5/18/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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