Book Title: Shaping the Future: Innovation, Sustainability, and Inclusive Growth in a Globalized Economy
Editors: Editors: Dr. Shanu Singh, and Dr. Yashmita Awasthi
Student Editor: Krishna Singh Rawat
ISBN: 978-93-7183-006-5
Chapter: 29
DOI: https://doi.org/10.59646/725/29
Authors: Kirti Singh, Kunal Rajput, and Dr. Anjali Dubey
Abstract
Digital payments have emerged as a transformative force in India’s financial ecosystem, significantly contributing to financial inclusion among underserved populations. The rise of Unified Payments Interface (UPI), mobile banking, e-wallets, and fintech applications has enabled individuals from rural areas, low-income groups, women, and workers in the unorganized sector to access financial services more conveniently. Government initiatives such as Digital India, Pradhan Mantri Jan Dhan Yojana (PMJDY), and PMGDISHA have accelerated the adoption of digital payment systems and expanded digital literacy across the country. Despite these developments, challenges related to socio-cultural barriers, low digital literacy, inadequate internet connectivity, and security concerns continue to restrict the full utilization of digital payment systems. Rural women, in particular, face barriers due to limited technological exposure and social constraints. This study aims to examine the role of digital payments in enhancing financial inclusion and to identify the major challenges limiting wider adoption in India.