Article summary
Abstract
Digital payment systems have significantly transformed the landscape of financial
transactions and personal finance management in India. The rapid growth of Unified
Payments Interface (UPI), mobile wallets, debit and credit cards, and other digital
payment platforms has enhanced convenience, speed, and accessibility in financial
activities. This study aims to analyse digital payment systems and personal finance
habits in India while identifying the major problems and challenges associated with
their adoption and usage. The findings indicate that digital payment technologies have
enabled users to monitor expenses, manage budgets, plan savings, and conduct
transactions more efficiently. However, several challenges continue to hinder their
widespread adoption, including security and privacy concerns, cyber fraud, inadequate
digital literacy, rural–urban disparities, poor internet connectivity, and technological
barriers. The study also highlights issues related to interoperability among payment
platforms, trust deficits among users, and the complexity of navigating multiple
payment applications. Furthermore, financial literacy remains a crucial determinant
of effective digital payment usage, particularly among economically weaker and less
educated populations. The study concludes that strengthening cyber security measures,
improving digital and financial literacy, enhancing infrastructure, and implementing
effective regulatory frameworks are essential for promoting secure, inclusive, and
sustainable digital payment ecosystems. Addressing these challenges will contribute
to greater financial inclusion and support the continued growth of India’s digital
economy.