V2I8P26

Advantages and Challenges of Digital Payment Usage in Everyday Transactions

Chethan BS^1*, Dr. Geeta Joshi²

Abstract

This study examines the advantages and challenges of digital payment usage in everyday transactions, focusing on how benefits such as convenience, speed, and accessibility are balanced against barriers like security concerns, lack of trust, and technical issues. It investigates the influence of trust, perceived convenience, and financial literacy on adoption rates. A quantitative, cross-sectional survey-based design was adopted, with data collected from 100 respondents in Bangalore through convenience and snowball sampling. A structured questionnaire captured demographics, usage patterns, perceived advantages, challenges, and influencing factors. The data was analysed using descriptive statistics, correlation, and multiple regression to explore relationships between user perceptions and adoption. Findings reveal high adoption, particularly among younger users, with UPI and mobile wallets being the most preferred methods. Top advantages include convenience (92%), faster transactions (88%), and 24/7 accessibility (85%), while major barriers are security concerns (72%) and technical glitches (50%). The study also notes a steady rise in adoption from 72% in 2018 to 94% in 2023. The results confirm that trust, convenience, and financial literacy significantly drive adoption, whereas security concerns hinder it. Overall, the study concludes that the sustained growth of digital payments depends on enhanced security, improved reliability, expanded merchant acceptance, and increased user literacy.

Keywords:

Digital Payments, UPI, Mobile Wallets, Trust, Convenience, Financial Literacy, Adoption Rate