Adoption of Unified Payment Interface (UPI): A Literature review

Abstract

The Unified Payment Interface (UPI) has revolutionized the digital payment landscape in India. UPI, developed by the National Payments Corporation of India (NPCI), offers a real-time payment system facilitating inter-bank transactions through a single mobile application for multiple bank accounts. This study examines the factors contributing to the rapid adoption of UPI, including its ease of use, interoperability, and robust security features. It also explores the impact of UPI on financial inclusion, digital literacy, and the reduction of cash transactions. The analysis is based on secondary data collected from various published sources. The findings suggest that UPI has significantly enhanced the efficiency and accessibility of digital payments, fostering a cashless economy and contributing to the overall economic growth. Future prospects of UPI, including its potential integration with international payment systems and emerging technologies, are also discussed.