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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM64356
Volume:
10 |
5 |
May 2026
Pages:
1-5
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.
School of Business
Galgotias University, Greater Noida, Uttar Pradesh, India
School of Business
Galgotias University, Greater Noida, Uttar Pradesh, India
The Unified Payments Interface (UPI), launched by NPCI in 2016, has emerged as one of the most transformative financial innovations in India’s economic history, processing over 117 billion transactions worth INR 183 lakh crore in FY 2023–24. This paper examines two critical dimensions: the financial impact of UPI on Indian banking services, and patterns and drivers of customer adoption. Primary data was collected via structured questionnaire from 102 respondents across varied demographics. Key findings: 94.12% actively use UPI; convenience (43.14%), fast transactions (23.53%), and ease of use (17.65%) are primary drivers; Paytm (41.18%) and PhonePe (31.37%) dominate the app market; 73.53% confirm reduced cash dependency; 80.39% perceive UPI as secure; 28.43% have experienced fraud; and 69.60% report high satisfaction. The study concludes that UPI has fundamentally restructured banking operations, reduced transaction costs, expanded financial inclusion, and deeply embedded itself into Indian consumer financial behaviour.
KEYWORDS
This study establishes that UPI has achieved remarkable penetration among Indian consumers, driven by functional utility rather than promotional incentives. All five research hypotheses are accepted, confirming the validity of the Technology Acceptance Model (TAM) in the Indian UPI context. UPI’s financial impact on banking is transformative — reducing operational costs, enabling financial inclusion, and creating new revenue streams through data-driven cross-selling. The critical unresolved challenge is the fraud paradox: while 80.39% perceive UPI as secure, 28.43% have experienced actual fraud or transaction issues, indicating that social engineering and phishing attacks exploit consumer vulnerabilities outside the technical system. UPI’s evolution through UPI Lite, credit-on-UPI, and international payment corridors positions India as a global fintech leader. Sustained investment in security infrastructure, rural digital penetration, and consumer education will be essential to deepening UPI’s impact.
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Publication Date
5/31/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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The authors declare no conflict of interest related to this research work.
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