An Empirical Study on Determinants of Digital Payment Adoption and Its Impact on Consumer Behaviour in India

Abstract

Digital payment systems have expanded rapidly in India, transforming the way individuals carry out financial transactions in their daily lives. The widespread adoption of technologies such as UPI, mobile wallets, and online banking has encouraged a shift from traditional cash-based methods to more efficient digital alternatives. This study aims to identify the key determinants influencing digital payment adoption and to examine their impact on consumer behaviour. Primary data were collected from 250 respondents using a structured questionnaire based on a five-point Likert scale. Statistical techniques, including descriptive statistics, reliability analysis, factor analysis, and regression analysis, were employed to analyse the data. The findings indicate that convenience is the most influential factor driving adoption, followed by trust and accessibility. Promotional benefits also contribute positively to usage behaviour. However, perceived security does not demonstrate a statistically significant impact, suggesting that users may already assume a baseline level of safety in digital transactions. Overall, the study highlights the increasing importance of digital payment systems in shaping consumer behaviour and emphasizes the need to enhance user experience and accessibility to support wider adoption.