From Cash to Clicks: The Transformative Impact of UPI on Consumer Behaviour and Financial Inclusion in India

This paper investigates the transformative impact of the Unified Payments Interface (UPI) on consumer behaviour, financial inclusion, and economic growth in India. Since introduction of UPI in 2016, it has revolutionized digital payments by offering a real-time, secure, and convenient platform for financial transactions. Through a comprehensive literature review and primary survey data from 140 respondents, this study investigates user perceptions of UPI's convenience, efficiency, and security compared to traditional cash transactions. Findings indicate high user satisfaction with UPI's speed and ease of use, leading to a significant shift towards digital payments, although it also suggests a potential for increased impulsive spending. The paper further explores UPI's macroeconomic contributions, including enhanced financial inclusion, improved transparency in government welfare programs, and boosted small business operations. The data analysis, presented with figures, highlights the demographic profile of UPI users and their transaction preferences, revealing a strong preference for UPI over cash across various transaction types. The conclusion directly addresses the research question, emphasizing UPI's pivotal role in India's journey towards a cashless society and its broad economic benefits. This study acknowledges limitations regarding its geographical and demographic scope and provides a questionnaire in the appendix.