An Empirical Investigation on Transition from Net banking to UPI payment

Abstract

The study investigates the transition from traditional net banking to the increasingly prevalent Unified Payments Interface (UPI) among Indian consumers. Its goal is to uncover the drivers behind this shift and provide a thorough assessment of the current state of UPI adoption. Through a meticulous examination of existing literature and empirical analysis, the study identifies convenience, security, speed, rewards, and transaction reliability as key factors influencing consumers' preference for UPI over conventional banking methods. By integrating primary and secondary data sources, the study analyses adoption rates, transaction frequencies, user satisfaction levels, and broader financial behaviours of UPI adopters. The findings reveal a significant increase in UPI usage, particularly among the digitally savvy younger demographic. This surge is fuelled by the appeal of real-time transactions, robust security measures, and the incentives offered by UPI platforms. However, despite these advancements, challenges such as transaction failures, technical glitches, and intermittent internet connectivity persist in the UPI landscape, highlighting the need for continuous innovation and enhancement. The insights derived from the study are invaluable for policymakers, financial institutions, and businesses aiming to optimize the UPI user experience, promote financial inclusion, and propel the evolution of India's digital payment ecosystem.