Emerging Technologies & their Impact on the Evolution of Digital Payment Systems

With the growing digitalization, the demand of consumers has witnessed a paradigm shift from just a product to the experience associated with the purchase. A significant shift toward a cashless and digital payment system was seen in business strategy and management at the beginning of the twenty-first century. Digitalization of payment system in India is an important area of increasing interest for any industry. The term Digital Payment means making payment to other person with the help of internet or through electronic mode instead of paper money. Technological disruption in terms of payments drastically changed the perception of people towards making payments in day-to-day life. This chapter envisaged to cover the aspects, modes, advantages, and challenges with respect to digital payments in Indian scenario. Data analysis is done using SPSS and MS Excel. To draw the inference of the study various testes as Mean, Compound Annual Growth Rate (CAGR), Coefficient of Variation (CV), Annual Growth Rate (AGR) tests were applied. Digital payments in terms of volume and value have shown significant growth. Various payment modes will also grow except closed loop wallet due to negative CAGR. Further, state-wise analysis showed that almost all of the States/UT have positive CAGR except Andhra Pradesh, Daman Diu Dadra & Nagar Haveli, Delhi, Goa, Rajasthan and Telangana as they have negative CAGR.