Unified Payments Interface (UPI) in India: A Review of Adoption, Impact, and Challenges

Abstract

Purpose: This study reviews the Unified Payments Interface (UPI) in India, analyzing its adoption, impact, and challenges. It evaluates its global reach and identifies factors promoting or hindering its global adoption, providing guidance for policymakers and academic researchers.

Design/Methodology/Approach: The study uses a qualitative and analytical review approach, analyzing secondary data from scholarly articles, official documents, policy assessments, and industry resources, focusing on the adoption, impact and challenges of the Unified Payments Interface.

Findings: UPI has significantly improved financial inclusion and digital payment ease in India, particularly after demonetisation and under the Digital India mission. However, challenges like digital literacy shortages, cybersecurity risks, and infrastructural limitations persist, especially among rural communities, the elderly, and low-income consumers. The study recommends policy interventions, enhanced digital literacy, and app design innovation to bridge usage gaps and build trust.

Originality/Value: This paper presents distinct viewpoints by examining the adoption of UPI, its significant impact on digital payments, and the elements that enhance its increasing importance among various user groups.

Paper Type: Review of Literature