Digital Payment Dynamics: Analyzing UPI Adoption, Usage, and Security Concerns in Bhagalpur, Bihar

Abstract

This study investigates the adoption and usage patterns of Unified Payment Interface (UPI) digital payments among 150 respondents from Bhagalpur district in Bihar. The survey reveals that UPI has widespread acceptance across diverse demographic groups, with a majority of users aged 20-39, predominantly male, and well-educated. The income levels of respondents vary, with a significant portion earning less than ₹100,000 annually, while others have higher incomes. Usage patterns indicate that UPI is used for various purposes, including money transfers, bill payments, and marketing, with 50% of users favoring Phone Pe as the most trusted application. Despite the general comfort with digital payments, concerns about fraud are prevalent, with 22% of respondents having experienced fraud, contributing to a sense of insecurity among 35% of users. Nevertheless, the majority of users report feeling secure and are increasingly integrating UPI into their daily transactions. The findings suggest that while India is progressing towards a cashless economy, addressing security concerns and enhancing user trust are crucial for further adoption. Recommendations include strengthening security measures, improving customer support, targeting low-income users, expanding rural outreach, incentivizing safe usage, and enhancing user satisfaction.