Evaluating User Engagement and the Influence of UPI on Digital Payment Systems in India

Abstract

Purpose- Unified Payments Interface has revolutionized the landscape of digital payments ecosystem in India, providing a seamless and instantaneous payment mechanism that enhances financial inclusion and user convenience. This research survey seeks to evaluate the rates of adoption, usage behaviours, & overall influence of UPI services. The study explores many factors that resulted in the broad acceptance of UPI, including Perceived Ease of Use (PEOU), Perceived Usefulness (PU), security, government regulations. Furthermore, the research addresses the impact of behavioural intentions results to actual usage.

Design/methodology/approach- This research is underpinned by the conceptual framework of the Technology Acceptance Model (TAM) and the Diffusion of Innovation (DoI). A study was conducted involving a sample of 202 participants. The validation of the framework & subsequent analysis was carried out by the Structural Equation Modeling (SEM) technique.

Findings and managerial implications- The findings underscore UPI's significance in fostering cashless transactions, its role in advancing the digital economy, and its potential to serve as a benchmark for digital payment systems.

Originality- The paper also explores policy implications and offers recommendations aimed at enhancing UPI's accessibility and effectiveness within India's varied socio-economic landscape.