IMPACT OF COVID-19 ON THE ADOPTION AND USAGE OF DIGITAL PAYMENTS IN INDIA

There has been significant change in the financial landscape after Covid-19. This study explores the impact of the pandemic on the adoption and usage of digital payment systems in the country by examining the various key drivers which has long-term implications for digital financial inclusion. India was already experiencing a gradual shift towards digital payments before Covid-19 Pandemic. Bolstered by government initiatives such as Digital India and the 2016 demonetization, consumers’ rate of digital payments system has been significantly increased. The present study employed a descriptive design by utilizing a structured questionnaire. The questionnaire was administered to a sample of 400 respondents which was selected through stratified random sampling. The study found a significant increase in digital payment adoption during the pandemic with health concerns being a primary driver. Government initiatives and regulatory policies also played a crucial role in facilitating this shift. Despite the rapid adoption challenges such as cyber security concerns and lack of digital literacy persist particularly in rural areas. The findings of the study suggest that the changes in consumer behaviour towards digital payments are likely to continue in the long term. It indicates a fundamental shift rather than a temporary trend. This research provides valuable insights into the evolving digital financial landscape in India highlighting the need for continued investment in digital infrastructure and cyber security measures to support the sustained growth of digital payments. The findings highlight the critical role of health concerns, government initiatives and the persistent nature of changes in consumer behaviour toward digital payment system. The study offers valuable insights for further researchers in navigating the evolving digital financial landscape in the country.