IMPACT OF DIGITAL PAYMENTS (UPI) ON CONSUMER BEHAVIOUR AMONG YOUNG ADULTS IN INDIA

PROJECT REPORT

By

NAME OF THE STUDENT(S)

KHUSHI JINDAL L             USN23BMSR0342

Month & Year

March 2026

ABSTRACT

The financial sector in India has undergone major changes because of digital technology that keeps advancing and especially because digital payment systems have expanded. The National Payments Corporation of India established Unified Payments Interface (UPI) which enables users to conduct cashless transactions through its system. Users can make instant money transfers through UPI which operates with mobile applications to deliver fast and easy financial transaction solutions. Young adults make up one of the largest groups of digital payment platform users because they use smartphones extensively and they understand how to use digital technologies. The research investigates how UPI-based digital payments affect young adults in India who behave as consumers. The research shows how digital payment systems affect youth spending patterns and their payment methods and shopping choices.

The research study examines the main reasons why people choose to use UPI which include its easy usage and fast operation and its availability and cash-back rewards and the rising number of businesses and service providers who accept digital payments. The study shows that UPI has enabled young users to decrease their cash usage while they make small payments for daily needs which include food and transportation and online shopping and entertainment. Security problems together with digital fraud incidents and data protection issues continue to exist as serious obstacles. Digital payment systems have changed the way young adults handle their finances according to the research which shows that these systems will drive the upcoming growth of digital payments in India.

KEYWORDS

UPI, Digital Payments, Consumer Behaviour, Young Adults, Cashless Economy, Mobile Payments, Financial Technology, Digital Transactions.