The Use of Digital Payment Methods and its Implications on Financial Inclusion: A Survey Study

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Dr. Devendra Kumar Dixit, Dr. Ranjana Sharma


In the digital era, the advent of electronic payment systems has revolutionized financial transactions, with significant implications for financial inclusion. This research paper delves into the dynamics of digital payment methods and their impact on financial inclusion in India, focusing on user demographics, adoption rates, perceptions, and barriers to usage.

The study was underpinned by several research objectives aimed at understanding the nuances of digital payment adoption across different demographic segments, assessing the perception of security and privacy, evaluating the role of digital payments in reducing cash dependency, identifying the adoption barriers, and recommending inclusive strategies for broader access. A set of research questions and hypotheses were formulated in line with these objectives.

A quantitative research approach was employed, involving a survey disseminated across multiple Indian states. The survey, comprising structured questionnaires, targeted a diverse population segment, accumulating a total of 500 responses. The data collected was rigorously analyzed using descriptive statistics, inferential tests (t-tests and ANOVA), and thematic analysis for open-ended responses.

Key findings of the study indicated a higher propensity for digital payment adoption among younger individuals, with notable hesitancy among older demographics. Security and privacy concerns were prevalent, significantly influencing user behavior, particularly among females. The research also highlighted a substantial reduction in cash dependency among digital payment users, indicating an increase in financial autonomy. However, significant barriers, including digital literacy, infrastructure inadequacies, and language barriers, especially in rural areas, impede widespread adoption.

These findings have profound implications for financial inclusion, emphasizing the need for a multifaceted approach to address the digital divide. The study underscores the necessity for stakeholder collaboration in enhancing digital infrastructure, literacy, and trust, thereby fostering an inclusive financial environment. The insights derived are of paramount importance for policymakers, financial institutions, and fintech companies aiming to innovate and expand the reach of digital financial services.

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How to Cite
Dr. Ranjana Sharma, D. D. K. D. (2024). The Use of Digital Payment Methods and its Implications on Financial Inclusion: A Survey Study. European Economic Letters (EEL), 14(1), 523–533.