Authors: Urmi Samanta, Kamlesh Kumar
Abstract: India is becoming one of the fastest-growing digital payment ecosystems in the world with the fast-developing technological innovations, active intervention of states, and the growth of consumer acceptance. It has been enabled by the platforms like the Unified Payments Interface (UPI), policy efforts, such as Digital India, and structural shocks, such as demonetization and the COVID-19 pandemic. This paper is an analysis of the cashless economy development in India that will be conducted as a systematic review of the reports of the institutions and peer-reviewed literature. The analyses policy frameworks, adoption trends, and socio-economic outcomes related to digital payments are analyzed in deriving the research by a qualitative methodology based on secondary data. The results indicate that interoperability, low transaction costs, smartphone penetration, and trust in digital infrastructure in the public have been key factors in forcing adoption. Meanwhile, cybersecurity, digital literacy, regional differences and integration into informal sector are being faced. The paper finds that although the cashless transformations in India have enhanced financial inclusion and the effectiveness of payments, further development will rely on the enhancement of digital capacities, regulatory supervision, and inclusive design. The article has added value to the body of literature by reviewing macro-policy and micro-adoption to form a single perspective of analysis.
