Factors Influencing Digital Payment Adoption in Urban India: Evidence from Vijayawada

The digital transformation of financial transactions represents a critical juncture in emerging economies’ developmental trajectories. This empirical investigation examines adoption patterns, behavioral preferences, and operational challenges associated with digital payment systems among 300 residents of Vijayawada, Andhra Pradesh. Utilizing a structured quantitative methodology with convenience sampling, primary data were collected through self-administered questionnaires and subjected to descriptive and inferential statistical analyses. Findings reveal that 33.30% of participants conduct daily digital transactions, with Unified Payments Interface (UPI) constituting the preferred modality (50%), succeeded by electronic wallets (26.70%). Platform analysis identifies PhonePe as market leader (40%), with Google Pay securing secondary position (26.70%). Convenience emerges as the principal adoption driver (40%), closely followed by security considerations (33.30%). Chi-square analyses demonstrate statistically significant associations between age demographics and usage frequency (χ² = 42.187, df = 9, p < 0.001), and between educational attainment and platform preferences (χ² = 38.956, df = 9, p < 0.001). Infrastructure-related impediments persist, with 26.70% experiencing application unavailability and 20% encountering technical malfunctions. Prospective adoption trajectories indicate optimistic trends, with 50% planning escalated utilization. These empirical findings possess substantial implications for financial technology stakeholders, regulatory authorities, and academic researchers. The study contributes theoretical advancement through validation of technology acceptance frameworks in developing economy contexts and provides actionable intelligence for enhancing digital financial inclusion through targeted interventions addressing infrastructure stability, cybersecurity reinforcement, and demographic-specific literacy initiatives.