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Growth and Challenges for Digital Payments in India: A Consumer-Centric Study

Shivam Patel, Amity Business School

Amity University, Chhattisgarh June 2025

Abstract The paper also delves into the government’s proactive steps, the pivotal role played by financial technology companies, and the demographic patterns influencing digital payment preferences. It highlights the surge in UPI transactions and mobile wallets while addressing the infrastructural, cybersecurity, and policy challenges impeding widespread adoption. In addition, this paper presents comprehensive data analysis from a survey of 163 respondents, examining consumer experiences, transaction patterns, and obstacles in embracing digital payment systems.

This research paper explores the dynamic evolution of digital payments in India, examining its growth trajectory, infrastructure, key payment modes, and the challenges facing its adoption. Spurred by the Digital India initiative, the landscape of electronic transactions has undergone a transformative change, particularly after the 2016 demonetisation. Through literature reviews, primary survey-based data analysis, and inferential assessments, the study captures consumer perceptions, spending patterns,

security concerns, and infrastructural limitations. The paper concludes with recommendations for policymakers and fintech innovators to address systemic gaps and ensure a seamless, secure, and inclusive digital payment ecosystem.

Keywords

Digital Payments, India, Demonetisation, UPI, NEFT, IMPS, Mobile Wallets, Financial Inclusion, Digital India, Cashless Economy, Cybersecurity, Consumer Perception, Fintech, E-payment Infrastructure, Digital Literacy