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IMPACT OF DIGITAL PAYMENTS ON CUSTOMER
Anjuhi
Department of Finance, Business Administration,
Galgotias University,
Anjuhigupta@gmail.com
Abstract
This research investigates the transformative role of digital payments in redefining customer behavior, financial access, and everyday transaction mechanisms. The adoption of digital payment platforms such as UPI, Paytm, Google Pay, PhonePe, and internet banking has accelerated due to technological advancements, government policies like Digital India, and increased smartphone penetration. The study evaluates the implications of these platforms on user satisfaction, security concerns, digital literacy, and economic inclusion. Using a mixed-method approach, it highlights usage trends, behavioral changes, and digital payment's role in bridging socioeconomic divides. The paper also presents a comprehensive SWOT analysis and concludes with actionable recommendations for policy-makers, businesses, and technology providers to improve and sustain digital payment adoption across India.
Digital payments encompass financial transactions executed through electronic means without the necessity for cash or physical banking infrastructure. Over the last decade, India has emerged as a global leader in the adoption of digital financial services, thanks to the integration of smartphones, 4G internet, and Aadhaar-based KYC verification processes. Initiatives such as Digital India, Jan Dhan Yojana, and the establishment of NPCI have accelerated the usage of platforms like UPI, mobile wallets, and contactless payments. This shift not only enhances convenience but also strengthens transparency, reduces operational costs, and fosters financial inclusion.
The post-pandemic period has witnessed an unprecedented spike in digital payment adoption. As per the NPCI (2024), UPI transactions exceeded 10 billion per month, reflecting deep behavioral changes among users. This paper explores these changes, especially focusing on how digital payments influence consumer experience, financial literacy, transaction patterns, and overall economic inclusion.
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