Digital Payment System Development in India

Abstract

Digital payment methods have been growing exponentially owing to global progress in technology and high product ranges. The adoption of digital payments has gained momentum in India over recent years. Demonetization has played a prominent role in the growth of online payment technologies in the country. Nationwide lockdown during the Covid-19 pandemic has also boosted the digital payment systems in India. The present paper reviews the development of digital payment services. The paper also discusses the various modes used for digital payments in India. The study highlighted the increased use of the Unified Payment Interface (UPI) network and other payment apps for digital money transactions. Moreover, the paper studies the impact of the development of digital payment services in India. The paper is based on secondary data, taken from the RBI bulletin, Annual Reports, various research papers, journal articles, and websites. The results demonstrated that digital payments have increased convenience and transparency in payments but have provoked security and reliability issues in financial transactions. The research evidence that the digital payment systems certainly benefited the people having a low and middle income, which will eventually help to boost the economy of India.