Digital Transformation Through UPI: A New Era of Payments in India

Abstract

Since more than 20 years, Indian banks have been committed to providing a wide range of services by using several electronic networks, including mobile banking, automated teller machines, and digital payments. The Unified Payments Interface (UPI), which was first introduced in 2016 as a real-time instantaneous payment and settlement system, currently makes up a whopping 47% of India's retail clearing and settlement systems. This has inspired the researchers to conduct a study on various UPI transactional parameters, such as user awareness, satisfaction, problems users encounter, and how long it takes to resolve those problems. In order to achieve this, a descriptive research design has been used, and 119 samples have been gathered using a structured questionnaire. To collect the samples, convenience sampling was used. Among the 119 respondents, 86% were aware of UPI as a form of electronic payment. Among the various digital payment methods, the UPI was chosen as the top option by 31% of respondents. The chi-square analysis showed a significant correlation between respondents' ages and their level of satisfaction with using UPI. According to the One-way ANOVA results, there has been a significant shift in the respondents' age clusters regarding how frequently they use UPI. Researchers have suggested that in order to increase the adoption of UPI across the country, regulators must both ensure the cyber security of UPI and take the necessary steps.