A Study on Digital Payment Adoption and Its Impact on Consumer Trust in E-commerce Transactions: Insights from the New Panvel Region

Abstract This research examines the adoption of digital payment systems and their impact on consumer trust in e-commerce transactions in the New Panvel area. Payment platforms like UPI, Google Pay, PhonePe, and Paytm have transformed consumer behavior by providing greater convenience and security. Yet, adoption rates are driven by a variety of factors, such as security issues, technical difficulties, and consumer awareness gaps. The study identifies the key factors of consumer trust in digital payments, such as secure transaction processes, effective refund systems, and effective fraud prevention mechanisms. The study also examines the influence of government programs and regulatory policies on encouraging the use of digital payment systems. The results indicate a direct correlation between the adoption of digital payment systems and higher consumer trust. This means that with increased improvement in security and consumers' increased belief in digital channels, adoption will increase. The research recommends that to increase trust in digital payment systems, security issues should be addressed and education on digital literacy offered. In summary, to ensure further growth of digital transactions in semi-urban segments such as New Panvel, it is important to focus on the growth of secure, user-friendly payment mechanisms. Building consumer confidence through enhanced security features and awareness programs will be instrumental in further boosting the adoption of digital payments in such markets