Abstract
This paper analyzes the impact of the Unified Payments Interface (UPI) on India's digital payment ecosystem since its inception in 2016. Following India's demonetization policy, UPI emerged as a critical infrastructure that changed how people conduct financial transactions. The research analyzes the evolution and impact of UPI by focusing on its technological framework, market adoption, and role in promoting financial inclusion.The study investigates how private sector players like Google Pay, PhonePe, and Paytm utilized UPI to develop accessible payment solutions. Through data analysis, the research identifies key players that drove UPI's widespread adoption on different segments of society. The findings highlight UPI's significant impact on financial inclusion and digital payment adoption while acknowledging challenges in security and regulatory compliance. This research contributes to understanding how technological innovation in payment systems can transform financial behaviors and promote economic inclusion. The insights from this study are relevant for policymakers, financial institutions, and technology providers working on digital payment solutions in developing economies.
REFERENCES
1. Bagla, R. K., & Sancheti, V. (2021). Digital Payment Service in India - A Case Study of Unified Payment Interface. Journal of Management (JOM), 8(4), 65-72. https://doi.org/10.34218/JOM.8.4.2021.008
2. UPI Product Statistics. (2024, December 25). NPCI. Retrieved January 12, 2025, from https://www.npci.org.in/what-we-do/upi/product-statistics
3. Baheti, G., Toshniwal, N., & Bhuriya, K. (2024). THE GLOBAL EVOLUTION OF THE UNIFIED PAYMENTS INTERFACE (UPI): a CATALYST FOR DIGITAL FINANCIAL INCLUSION. Journal of the K.R. Cama Oriental Institute, 31–32.
4. Ramachandran, Kalyanasundharam. (2018). UNIFIED PAYMENTS INTERFACE (UPI) -TRANSFORMATION OF DIGITAL PAYMENT SYSTEMS IN INDIA. 5. 42-48.
5. Rajendran, G., Sivabushanan, V., & S, S. (2022). A Paradigm Shifts in Digital Payment Transactions: UPI, IMPS & NFS Before and After COVID-19 to seize opportunity of cashless economy in India. Central European Management Journal, 916–916. https://www.researchgate.net/publication/364994656
6. Digital Payments driving the growth of Digital Economy | National Informatics Centre | India. (n.d.).
7. Unified Payments Interface (UPI) Product Statistics | NPCI. (n.d.). Retrieved January 15, 2025, from https://www.npci.org.in/what-we-do/upi/product-statistics
8. Unified Payments Interface (UPI) Ecosystem Statistics | NPCI. (n.d.). Retrieved January 15, 2025, from https://www.npci.org.in/what-we-do/upi/upi-ecosystem-statistics