THE GROWTH TRAJECTORY OF UPI-BASED MOBILE PAYMENTS IN INDIA: ENABLERS AND INHIBITORS
Keywords:
Digital Payments, Mobile Payments, M-wallets, Unified Payments Interface, UPI.
Abstract
"Unified Payments Interface" (UPI), an innovative mobile-based payment system, was introduced by the Government of India to support its digitization initiatives. Not just in India, UPI has expanded globally by being implemented in Bhutan and is on the verge of being launched in ten more countries in north and southeast Asia and, the UAE & Africa. Thus the study examines UPI's growth and significance to the transformation of India's mobile payment systems, its global reach and further expansion. The study consists of two parts, with an initial focus on scholarly literature published in the last five years since the UPI's inception in April 2016. Out of 177 papers, the method yielded 14 notable peer-reviewed publications. Other sources include government policy papers, news materials, and research undertaken by national or international organizations such as Kantar, Statista, ASSOCHAM, Deloitte, Nielson, Ericsson, etc. Despite its early launch, UPI swiftly outperformed all other digital payment methods in India, including mobile wallets. Google Pay, PhonePe and Paytm were early drivers of UPI payments. However, the government-backed Bharat Interface for Money application failed to achieve its potential. Moreover, the Covid-19 pandemic has little impacted the growth of UPI. Another major finding is that transaction failure, and cyber frauds must be addressed for improved UPI uptake, and a greater focus will be on credit and cash withdrawals via UPI. The study concluded that Near field communication-based UPI payments will revolutionize peer-to-merchant payments.
JEL Classification Codes: C00, C10, C80, G28.
References
Anjali, R., & Suresh, A. (2019). A study on customer satisfaction of bharat interface for money (BHIM). International Journal of Innovative Technology and Exploring Engineering, 8(6), 266–273.
ASSOCHAM-PWC. (2019). India's digital payments projected to more than double to USD 135 billion in 4 years. Retrieved from https://www.assocham.org/newsdetail-print.php?id=7138
Au, Y. A., & Kauffman, R. J. (2008). The economics of mobile payments: Understanding stakeholder issues for an emerging financial technology application. Electronic Commerce Research and Applications, 7(2), 141–164. https://doi.org/10.1016/j.elerap.2006.12.004
Bansal, S., Bruno, P., Denecker, O., Goparaju, M., & Niederkorn, M. (2018). Global payments 2018: A dynamic industry continues to break new ground. Retrieved from https://www.mckinsey.com/~/media/mckinsey/industries/financial services/our insights/global payments expansive growth targeted opportunities/global-payments-map-2018.pdf
Bhalla, K. (2020). UPI QR Caters To 250 Mn Transactions Monthly, But Numbers Still Low, Says RBI. Inc42 Media. Retrieved from https://inc42.com/buzz/upi-qr-caters-to-250-mn-transactions-monthly-but-numbers-still-low-says-rbi/
Bhardwaj, S., & Kaushik, M. (2018a). Unified payment interface—a way ahead for demonetization in India. Smart Innovation, Systems and Technologies, 78, 273–280. https://doi.org/10.1007/978-981-10-5547-8_29
Bhardwaj, S., & Kaushik, M. (2018b). Unified payment interface—a way ahead for demonetization in India. In Smart Innovation, Systems and Technologies (Vol. 78, pp. 273–280). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-981-10-5547-8_29
Boonsiritomachai, W., & Pitchayadejanant, K. (2017). Determinants affecting mobile banking adoption by generation Y based on the unified theory of acceptance and use of technology model modified by the technology acceptance model concept. Kasetsart Journal of Social Sciences, 40(2), 349–358. https://doi.org/10.1016/j.kjss.2017.10.005
Bose, S. (n.d.). In supermarket category, we see good payment volumes: Praveena Rai, chief operating officer, NPCI. Financial Express. Retrieved from https://www.financialexpress.com/industry/in-supermarket-category-we-see-good-payment-volumes-praveena-rai-chief-operating-officer-npci/1922111/
Business Standard. (2019). An app may be stealing your bank data, RBI warns digital, UPI users. Business Standard. Retrieved from https://www.business-standard.com/article/finance/digital-banking-upi-users-beware-rbi-warns-against-anydesk-all-you-need-to-know-119021800425_1.html
Business Standard. (2021). Internet users up nearly 4% to over 825 million in Q4 of FY21: TRAI data. Retrieved from https://www.business-standard.com/article/economy-policy/internet-users-up-nearly-4-to-over-825-million-in-q4-of-fy21-trai-data-121082701105_1.html
Business wire. (2021). Indian Consumers More Concerned About Digital Payments Fraud Due to COVID-19 Compared To Last Year – New ACI Worldwide Study. https://www.businesswire.com/news/home/20210607005699/en
Chawla, D., & Joshi, H. (2019). Consumer attitude and intention to adopt mobile wallet in India – An empirical study. International Journal of Bank Marketing, 37(7), 1590–1618. https://doi.org/10.1108/IJBM-09-2018-0256
Deloitte. (2017). Disruptions in Retail through Digital Transformation Reimagining the Store of the Future. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/in/Documents/CIP/in-cip-disruptions-in-retail-noexp.pdf
Dhamija, A., & Dhamijia, D. (2017). Technological Advancements in Payments: From Cash to Digital through Unified Payments Interface(UPI). IGI Global. https://doi.org/10.4018/978-1-5225-1974-4.ch011
ENtrackr. (2020). NPCI set to abolish PSP fee for P2M transactions: How will G-Pay and PhonePe make money via UPI? Retrieved from https://entrackr.com/2020/02/npci-abolish-psp-fee-upi/
ETBFSI. (2019). BHIM app goes international, gets launched at Singapore FinTech Festival 2019. Retrieved from https://bfsi.economictimes.indiatimes.com/news/fintech/bhim-app-goes-international-gets-launched-at-singapore-fintech-festival-2019/72035687
ETBFSI. (2020). Offline Merchant payments over QR code double in lockdown, says Ashneer Grover of BharatPe. The Economic Times. Retrieved from https://bfsi.economictimes.indiatimes.com/news/fintech/offline-merchant-payments-over-qr-code-doubles-in-lockdown-says-ashneer-grover-of-bharatpe/75615542
ETBrandEquity. (2019). 88% of Indian consumers use mobile devices to make purchases or pay online: PayPal report. Retrieved from https://brandequity.economictimes.indiatimes.com/news/digital/88-of-indian-consumers-use-mobile-devices-to-make-purchases-or-pay-online-paypal-report/72182209
ETGovernment. (2020). Mumbai: Cyber cell registers 70% rise in digital payment frauds in first 5 months this year. Retrieved from https://government.economictimes.indiatimes.com/news/digital-india/mumbai-cyber-cell-registers-70-rise-in-digital-payment-frauds-in-first-5-months-this-year/77592937
Financial Express. (2021). Average data consumption for a mobile user is 14 GB per month: DoT. Financial Express. Retrieved from https://www.financialexpress.com/industry/average-data-consumption-for-a-mobile-user-is-14-gb-per-month-dot/2391461/
Forrester. (2014). US Mobile Payments To Reach $142 Billion By 2019. Forrester. Retrieved from https://go.forrester.com/press-newsroom/us-mobile-payments-to-reach-142-billion-by-2019/
Globe Newswire. (2019). Digital Payment Market To Reach USD 10.07 Trillion By 2026 | Reports And Data. GLOBE NEWSWIRE. Retrieved from https://www.globenewswire.com/news-release/2019/07/25/1888147/0/en/Digital-Payment-Market-To-Reach-USD-10-07-Trillion-By-2026-Reports-And-Data.html
Gochhwal, R. (2017). Unified Payment Interface—An Advancement in Payment Systems. American Journal of Industrial and Business Management, 07(10), 1174–1191. https://doi.org/10.4236/ajibm.2017.710084
Gupta, R., Kapoor, C., & Yadav, J. (2020). Acceptance Towards Digital Payments and Improvements in Cashless Payment Ecosystem. 2020 International Conference for Emerging Technology (INCET), pp. 1–9. https://doi.org/10.1109/INCET49848.2020.9154024
Gupta, S., Mittal, R., & Mittal, A. (2019). Modelling the Intentions to Adopt UPIs: A PLS-SEM Approach. 2019 6th International Conference on Computing for Sustainable Global Development (INDIACom), pp. 246–250.
Handarkho, Y. D., & Harjoseputro, Y. (2019). Intention to adopt mobile payment in physical stores: Individual switching behavior perspective based on Push–Pull–Mooring (PPM) theory. Journal of Enterprise Information Management, 33(2), 285–308. https://doi.org/10.1108/JEIM-06-2019-0179
Jivan Biradar, D. (2021). Growth and Factors Affecting the Uses of e-banking Services in India. Journal of University of Shanghai for Science and Technology, 23(10), 61–80. https://doi.org/10.51201/jusst/21/10722
Jocevski, M., Ghezzi, A., & Arvidsson, N. (2020). Exploring the growth challenge of mobile payment platforms: A business model perspective. Electronic Commerce Research and Applications, 40, 100908. https://doi.org/10.1016/j.elerap.2019.100908
Johnson, V. L., Kiser, A., Washington, R., & Torres, R. (2018). Limitations to the rapid adoption of M-payment services: Understanding the impact of privacy risk on M-Payment services. Computers in Human Behavior, pp. 79, 111–122. https://doi.org/10.1016/j.chb.2017.10.035
Kapur, P. K., Sharma, H., Tandon, A., & Aggarwal, A. G. (2020). Studying BHIM app adoption using bass model: An Indian perspective. International Journal of Mathematical, Engineering and Management Sciences, 5(1), 120–135. https://doi.org/10.33889/IJMEMS.2020.5.1.011
Karnouskos, S., & Fokus, F. (2004). Mobile Payment: A Journey through Existing Procedures and Standardization Initiatives. IEEE Communications Surveys & Tutorials, Fourth Qua, 44–66.
Kaur, P., Dhir, A., Bodhi, R., Singh, T., & Almotairi, M. (2020). Why do people use and recommend m-wallets? Journal of Retailing and Consumer Services, 56, 102091. https://doi.org/10.1016/j.jretconser.2020.102091
Khanra, S., Joseph, R. P., Dhir, A., & Kaur, P. (2020). Antecedents of the Barriers Toward the Adoption of Unified Payment Interface BT - Re-imagining Diffusion and Adoption of Information Technology and Systems: A Continuing Conversation (S. K. Sharma, Y. K. Dwivedi, B. Metri, & N. P. Rana (eds.); pp. 608–625). Springer International Publishing.
Kim, H., Xiang, Z., & Fesenmaier, D. R. (2015). Use of the internet for trip planning: A generational analysis. Journal of Travel and Tourism Marketing, 32(3), 276–289. https://doi.org/10.1080/10548408.2014.896765
Kumar, R., Kishore, S., Lu, H., & Prakash, A. (2020). Security analysis of unified payments interface and payment apps in India. Proceedings of the 29th USENIX Security Symposium, 1499–1516.
Lakshmi, K. K., Gupta, H., & Ranjan, J. (2019). UPI Based Mobile Banking Applications - Security Analysis and Enhancements. Proceedings - 2019 Amity International Conference on Artificial Intelligence, AICAI 2019, 903–908. https://doi.org/10.1109/AICAI.2019.8701396
Liébana-Cabanillas, F. J., Sánchez-Fernández, J., & Muñoz-Leiva, F. (2014). Role of gender on acceptance of mobile payment. Industrial Management and Data Systems, 114(2), 220–240. https://doi.org/10.1108/IMDS-03-2013-0137
Madan, K., & Yadav, R. (2016). Behavioural intention to adopt mobile wallet: a developing country perspective. Journal of Indian Business Research, 8(3), 227–244. https://doi.org/10.1108/JIBR-10-2015-0112
Malladi, S. (2021). Towards Formal Modeling and Analysis of UPI Protocols. 2021 Third International Conference on Intelligent Communication Technologies and Virtual Mobile Networks (ICICV), pp. 239–243. https://doi.org/10.1109/ICICV50876.2021.9388452
Mallat, N., Rossi, M., Tuunainen, V. K., & Öörni, A. (2009). The impact of use context on mobile services acceptance: The case of mobile ticketing. Information and Management, 46(3), 190–195. https://doi.org/10.1016/j.im.2008.11.008
Mallat, & Tuunainen. (2008). Exploring Merchant Adoption of Mobile Payment Systems: An Empirical Study. E-Service Journal, 6(2), 24. https://doi.org/10.2979/esj.2008.6.2.24
Mallik, P. K., & Gupta, D. (2021). A Study on Factors Influencing Consumer Intention to Use UPI-Based Payment Apps in Indian Perspective BT - Information and Communication Technology for Intelligent Systems (T. Senjyu, P. N. Mahalle, T. Perumal, & A. Joshi (eds.); pp. 445–452). Springer Singapore.
MAS. (2021). Singapore’s PayNow and India’s UPI to Link in 2022. Monetary Autority of Singapore. https://www.mas.gov.sg/news/media-releases/2021/singapores-paynow-and-indias-upi-to-link-in-2022
McKinsey. (2019). Digital India Technology to transform a connected nation. Retrieved from https://www.mckinsey.com/~/media/McKinsey/Business Functions/McKinsey Digital/Our Insights/Digital India Technology to transform a connected nation/MGI-Digital-India-Exec-summary-April-2019.pdf
Mint. (2019). Digital transactions to grow at a CAGR of 52% in next five years: SBI Cards. Mint. Retrieved from https://www.livemint.com/industry/banking/digital-transactions-to-grow-at-a-cagr-of-52-in-next-five-years-sbi-cards-11575372710071.html
Mishra, D. (2020). At 4,572 crore, digital payments surpass govt’s target for FY 20. TOI. Retrieved from https://timesofindia.indiatimes.com/business/india-business/at-4572cr-digital-payments-surpass-govts-target-for-fy20/articleshow/76882096.cms
Money Control. (2020). As UPI grows leaps and bounds, transaction failures increase, too. Money Control. Retrieved from https://www.moneycontrol.com/news/business/as-upi-grows-leaps-and-bounds-transaction-failures-increase-too-6029531.html
Money Control. (2021). Can 30% market share cap on UPI ever be implemented?
Morgan Stanley. (2020). India’s Millenials to Drive Growth in Four Key Sectors. Retrieved from https://www.morganstanley.com/ideas/India-millennials-growth-sectors
Nielsen. (2018). WHAT HANDSETS SAY ABOUT CONSUMERS. Retrieved from https://www.nielsen.com/in/en/insights/report/2018/what-handsets-say-about-consumers/
NPCI. (2019a). Introduction of P2PM category in UPI for unorganized or small merchants. Retrieved from https://www.npci.org.in/PDF/npci/upi/circular/2019/Circular 70 - Introduction of P2PM category in UPI for unorganized or small merchants.pdf
NPCI. (2019b). Levy of Surcharge by merchants and Channel partners prohibited in UPI. Retrieved from https://www.npci.org.in/sites/default/files/circular/Scan Documents.pdf
NPCI. (2020). NPCI gives approval for WhatsApp to ‘ Go Live ’ on UPI in a graded manner National Payments Corporation of India. Retrieved from https://www.npci.org.in/PDF/npci/press-releases/2020/NPCI-gives-approval-for-WhatsApp-to-Go-Live-on-UPI.pdf
NPCI. (2021a). NPCI International. Retrieved from https://www.npci.org.in/who-we-are/group-companies/npci-international
NPCI. (2021b). UPI Ecosystem Statistics. Retrieved from https://www.npci.org.in/what-we-do/upi/upi-ecosystem-statistics
NPCI. (2021c). UPI Product Statistics. NPCI. Retrieved from https://www.npci.org.in/what-we-do/upi/product-statistics
Omidyar Network. (2017). Currency of Trust: Consumer Behaviors and Attitudes Toward Digital Financial Services in India. Retrieved from https://www.omidyarnetwork.in/wp-content/uploads/pdfs/17-05-15_Currency_of_Trust_Report_DIGITAL_FINAL.pdf
Parment, A. (2013). Generation Y vs. Baby Boomers: Shopping behavior, buyer involvement and implications for retailing. Journal of Retailing and Consumer Services, 20(2), 189–199. https://doi.org/10.1016/j.jretconser.2012.12.001
PIB. (2021). Finance Minister Smt Nirmala Sitharaman and Finance Minister of Bhutan Mr Lyonpo Namgay Tshering jointly launch BHIM–UPI in Bhutan. Finance Minister Smt Nirmala Sitharaman and Finance Minister of Bhutan Mr Lyonpo Namgay Tshering jointly launch BHIM–UPI in Bhutan
PMGDISHA. (2020). Overview of PMGDISHA. Retrieved from https://www.pmgdisha.in/about-pmgdisha/
PTI. (2019). Government launches BHIM 2.0 with new functionalities, additional language support. Retrieved from https://www.thehindu.com/sci-tech/technology/government-launches-bhim-20-with-new-functionalities-additional-language-support/article29760051.ece
Rastogi, S., Panse, C., Sharma, A., & Bhimavarapu, V. M. (2021). Unified Payment Interface (UPI): A digital innovation and its impact on financial inclusion and economic development. Universal Journal of Accounting and Finance, 9(3), 518–530. https://doi.org/10.13189/ujaf.2021.090326
Razorpay. (2020). UPI Based P2P Transactions Will Attract Charges from Banks. 2020. Retrieved from https://razorpay.com/learn/upi-banks-transactions-charges-fees/
RBI. (2019a). Harmonization of Turn Around Time (TAT) and customer compensation for failed transactions using authorized Payment Systems. Retrieved from https://m.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=11693
RBI. (2019b). Payment and Settlement Systems in India: Vision- 2019-2021. Retrieved from https://rbidocs.rbi.org.in/rdocs/PublicationReport/PDFs/PAYMENT1C3B80387C0F4B30A56665DD08783324.PDF
RBI. (2019c). Report of the High Level Committee on Deepening of Digital Payments, 2019. Retrieved from https://rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=922
Rehncrona, C. (2018). Young consumers’ valuations of new payment services. International Journal of Quality and Service Sciences, 10(4), 384–399. https://doi.org/10.1108/IJQSS-11-2017-0111
SabPaisa. (2020). Learn the predictions for UPI payments in 2020. Retrieved from https://sabpaisa.in/learn-the-predictions-for-upi-payments-in-2020/
Sane, A., & Biradar, J. (2021). How far is indian society from digital payment system? In … Потенціалу Суб’Єктів Економічних Відносин Як … (Issue 9). ФОП Паляниця В.А. Retrieved from http://elartu.tntu.edu.ua/handle/lib/35250%0Ahttp://elartu.tntu.edu.ua/bitstream/lib/35250/2/NFEPSEV_2021_Sane_A-How_far_is_indian_society_from_73-78.pdf
Sarmah, R., Dhiman, N., & Kanojia, H. (2020). Understanding intentions and actual use of mobile wallets by millennial: an extended TAM model perspective. Journal of Indian Business Research, 13(3), 361–381. https://doi.org/10.1108/JIBR-06-2020-0214
SCIT. (2019). Review Of National Digital Literacy Mission (Ndlm) – Problems And Challenges. Retrieved from http://164.100.47.193/lsscommittee/Communications and Information Technology/17_Information_Technology_11.pdf
Seranmadevi, R., Praveenraj, D. D. W., & Natarajan, M. L. (2019). E- Wallet – a Technological Revolution in Digital India. Internation Journal of Innovative Technology and Exploring Engineering (IJTITEE), 8(11), 3870–3877. https://doi.org/10.35940/ijitee
Statista. (2021a). Number of smartphone users in India in 2015 to 2020, with estimates until 2025(in millions).
Statista. (2021b). Number of WhatsApp users in selected countries worldwide as of June 2021. Retrieved from https://www.statista.com/statistics/289778/countries-with-the-most-facebook-users/#:~:text=There are over 487 million,most popular messaging service worldwide.
T, R. (2019). Digital financial inclusion: A payoff of financial technology and digital finance uprising in India. International Journal of Scientific and Technology Research, 8(11), 3434–3438.
Tak, P., & Panwar, S. (2017). Using UTAUT 2 model to predict mobile app based shopping: evidences from India. Journal of Indian Business Research, 9(3), 248–264. https://doi.org/10.1108/JIBR-11-2016-0132
Teo, A.-C., Tan, G. W.-H., Ooi, K.-B., Hew Teck-Soon, & Yew, K. (2015). The effects of convenience and speed in m-payment. Industrial Management & Data Systems, 115(2), 311–331. https://doi.org/10.1108/IMDS-08-2014-0231
Thakur, R., & Srivastava, M. (2013). Customer usage intention of mobile commerce in India: An empirical study. Journal of Indian Business Research, 5(1), 52–72. https://doi.org/10.1108/17554191311303385
The Economic Times. (2019). No MDR charges applicable on payment via RuPay, UPI from Jan 1: Sitharaman. December 28, 2019. Retrieved from https://economictimes.indiatimes.com/industry/banking/finance/banking/no-mdr-charges-applicable-on-payment-via-rupay-upi-from-jan-1-sitharaman/articleshow/73008967.cms
The Economic Times. (2020a). CBDT asks banks to refund any fees levied on UPI transactions in 2020. The Economic Times. Retrieved from https://economictimes.indiatimes.com/industry/banking/finance/banking/cbdt-asks-banks-to-refund-any-fees-levied-on-upi-transactions-in-2020/articleshow/77835725.cms?from=mdr
The Economic Times. (2020b). Digital payments soar as Covid-19 fuels online transactions. The Economic Times. Retrieved from https://tech.economictimes.indiatimes.com/news/internet/digital-payments-soar-as-covid-19-fuels-online-transactions/76816169#:~:text=Nearly 76%25 of respondents were,of the Covid-19 pandemic
The Economic Times. (2021). NPCI arm, Network Int join hands for UPI payment system in UAE. Retrieved from https://economictimes.indiatimes.com/news/international/uae/npci-arm-network-int-join-hands-for-upi-payment-system-in-uae/articleshow/87784172.cms
The Hindu. (2020a). Demonetisation helped curb black money: Narendra Modi. Retrieved from https://www.thehindu.com/news/national/demonetisation-helped-reduce-black-money-increased-tax-compliance-gave-boost-to-transparency-says-modi/article33051970.ece
The Hindu. (2020b). NPCI puts 30% cap on volume for all third-party apps offering UPI.
The Print. (2021). Fake websites, UPI hacking — Delhi saw 190% rise in cyber frauds during lockdown, police say. Retrieved from https://theprint.in/india/fake-websites-upi-hacking-delhi-saw-190-rise-in-cyber-frauds-during-lockdown-police-say/608363/
The Times of India. (2021). Pay via UPI in 10 more countries. Retrieved from https://timesofindia.indiatimes.com/business/india-business/pay-via-upi-in-10-more-countries/articleshow/86184175.cms
Xiang, Z., Magnini, V. P., & Fesenmaier, D. R. (2015). Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet. Journal of Retailing and Consumer Services, 22, 244–249. https://doi.org/10.1016/j.jretconser.2014.08.005
Zhou, T. (2013). An empirical examination of continuance intention of mobile payment services. Decision Support Systems, 54(2), 1085–1091. https://doi.org/10.1016/j.dss.2012.10.034
ASSOCHAM-PWC. (2019). India's digital payments projected to more than double to USD 135 billion in 4 years. Retrieved from https://www.assocham.org/newsdetail-print.php?id=7138
Au, Y. A., & Kauffman, R. J. (2008). The economics of mobile payments: Understanding stakeholder issues for an emerging financial technology application. Electronic Commerce Research and Applications, 7(2), 141–164. https://doi.org/10.1016/j.elerap.2006.12.004
Bansal, S., Bruno, P., Denecker, O., Goparaju, M., & Niederkorn, M. (2018). Global payments 2018: A dynamic industry continues to break new ground. Retrieved from https://www.mckinsey.com/~/media/mckinsey/industries/financial services/our insights/global payments expansive growth targeted opportunities/global-payments-map-2018.pdf
Bhalla, K. (2020). UPI QR Caters To 250 Mn Transactions Monthly, But Numbers Still Low, Says RBI. Inc42 Media. Retrieved from https://inc42.com/buzz/upi-qr-caters-to-250-mn-transactions-monthly-but-numbers-still-low-says-rbi/
Bhardwaj, S., & Kaushik, M. (2018a). Unified payment interface—a way ahead for demonetization in India. Smart Innovation, Systems and Technologies, 78, 273–280. https://doi.org/10.1007/978-981-10-5547-8_29
Bhardwaj, S., & Kaushik, M. (2018b). Unified payment interface—a way ahead for demonetization in India. In Smart Innovation, Systems and Technologies (Vol. 78, pp. 273–280). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-981-10-5547-8_29
Boonsiritomachai, W., & Pitchayadejanant, K. (2017). Determinants affecting mobile banking adoption by generation Y based on the unified theory of acceptance and use of technology model modified by the technology acceptance model concept. Kasetsart Journal of Social Sciences, 40(2), 349–358. https://doi.org/10.1016/j.kjss.2017.10.005
Bose, S. (n.d.). In supermarket category, we see good payment volumes: Praveena Rai, chief operating officer, NPCI. Financial Express. Retrieved from https://www.financialexpress.com/industry/in-supermarket-category-we-see-good-payment-volumes-praveena-rai-chief-operating-officer-npci/1922111/
Business Standard. (2019). An app may be stealing your bank data, RBI warns digital, UPI users. Business Standard. Retrieved from https://www.business-standard.com/article/finance/digital-banking-upi-users-beware-rbi-warns-against-anydesk-all-you-need-to-know-119021800425_1.html
Business Standard. (2021). Internet users up nearly 4% to over 825 million in Q4 of FY21: TRAI data. Retrieved from https://www.business-standard.com/article/economy-policy/internet-users-up-nearly-4-to-over-825-million-in-q4-of-fy21-trai-data-121082701105_1.html
Business wire. (2021). Indian Consumers More Concerned About Digital Payments Fraud Due to COVID-19 Compared To Last Year – New ACI Worldwide Study. https://www.businesswire.com/news/home/20210607005699/en
Chawla, D., & Joshi, H. (2019). Consumer attitude and intention to adopt mobile wallet in India – An empirical study. International Journal of Bank Marketing, 37(7), 1590–1618. https://doi.org/10.1108/IJBM-09-2018-0256
Deloitte. (2017). Disruptions in Retail through Digital Transformation Reimagining the Store of the Future. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/in/Documents/CIP/in-cip-disruptions-in-retail-noexp.pdf
Dhamija, A., & Dhamijia, D. (2017). Technological Advancements in Payments: From Cash to Digital through Unified Payments Interface(UPI). IGI Global. https://doi.org/10.4018/978-1-5225-1974-4.ch011
ENtrackr. (2020). NPCI set to abolish PSP fee for P2M transactions: How will G-Pay and PhonePe make money via UPI? Retrieved from https://entrackr.com/2020/02/npci-abolish-psp-fee-upi/
ETBFSI. (2019). BHIM app goes international, gets launched at Singapore FinTech Festival 2019. Retrieved from https://bfsi.economictimes.indiatimes.com/news/fintech/bhim-app-goes-international-gets-launched-at-singapore-fintech-festival-2019/72035687
ETBFSI. (2020). Offline Merchant payments over QR code double in lockdown, says Ashneer Grover of BharatPe. The Economic Times. Retrieved from https://bfsi.economictimes.indiatimes.com/news/fintech/offline-merchant-payments-over-qr-code-doubles-in-lockdown-says-ashneer-grover-of-bharatpe/75615542
ETBrandEquity. (2019). 88% of Indian consumers use mobile devices to make purchases or pay online: PayPal report. Retrieved from https://brandequity.economictimes.indiatimes.com/news/digital/88-of-indian-consumers-use-mobile-devices-to-make-purchases-or-pay-online-paypal-report/72182209
ETGovernment. (2020). Mumbai: Cyber cell registers 70% rise in digital payment frauds in first 5 months this year. Retrieved from https://government.economictimes.indiatimes.com/news/digital-india/mumbai-cyber-cell-registers-70-rise-in-digital-payment-frauds-in-first-5-months-this-year/77592937
Financial Express. (2021). Average data consumption for a mobile user is 14 GB per month: DoT. Financial Express. Retrieved from https://www.financialexpress.com/industry/average-data-consumption-for-a-mobile-user-is-14-gb-per-month-dot/2391461/
Forrester. (2014). US Mobile Payments To Reach $142 Billion By 2019. Forrester. Retrieved from https://go.forrester.com/press-newsroom/us-mobile-payments-to-reach-142-billion-by-2019/
Globe Newswire. (2019). Digital Payment Market To Reach USD 10.07 Trillion By 2026 | Reports And Data. GLOBE NEWSWIRE. Retrieved from https://www.globenewswire.com/news-release/2019/07/25/1888147/0/en/Digital-Payment-Market-To-Reach-USD-10-07-Trillion-By-2026-Reports-And-Data.html
Gochhwal, R. (2017). Unified Payment Interface—An Advancement in Payment Systems. American Journal of Industrial and Business Management, 07(10), 1174–1191. https://doi.org/10.4236/ajibm.2017.710084
Gupta, R., Kapoor, C., & Yadav, J. (2020). Acceptance Towards Digital Payments and Improvements in Cashless Payment Ecosystem. 2020 International Conference for Emerging Technology (INCET), pp. 1–9. https://doi.org/10.1109/INCET49848.2020.9154024
Gupta, S., Mittal, R., & Mittal, A. (2019). Modelling the Intentions to Adopt UPIs: A PLS-SEM Approach. 2019 6th International Conference on Computing for Sustainable Global Development (INDIACom), pp. 246–250.
Handarkho, Y. D., & Harjoseputro, Y. (2019). Intention to adopt mobile payment in physical stores: Individual switching behavior perspective based on Push–Pull–Mooring (PPM) theory. Journal of Enterprise Information Management, 33(2), 285–308. https://doi.org/10.1108/JEIM-06-2019-0179
Jivan Biradar, D. (2021). Growth and Factors Affecting the Uses of e-banking Services in India. Journal of University of Shanghai for Science and Technology, 23(10), 61–80. https://doi.org/10.51201/jusst/21/10722
Jocevski, M., Ghezzi, A., & Arvidsson, N. (2020). Exploring the growth challenge of mobile payment platforms: A business model perspective. Electronic Commerce Research and Applications, 40, 100908. https://doi.org/10.1016/j.elerap.2019.100908
Johnson, V. L., Kiser, A., Washington, R., & Torres, R. (2018). Limitations to the rapid adoption of M-payment services: Understanding the impact of privacy risk on M-Payment services. Computers in Human Behavior, pp. 79, 111–122. https://doi.org/10.1016/j.chb.2017.10.035
Kapur, P. K., Sharma, H., Tandon, A., & Aggarwal, A. G. (2020). Studying BHIM app adoption using bass model: An Indian perspective. International Journal of Mathematical, Engineering and Management Sciences, 5(1), 120–135. https://doi.org/10.33889/IJMEMS.2020.5.1.011
Karnouskos, S., & Fokus, F. (2004). Mobile Payment: A Journey through Existing Procedures and Standardization Initiatives. IEEE Communications Surveys & Tutorials, Fourth Qua, 44–66.
Kaur, P., Dhir, A., Bodhi, R., Singh, T., & Almotairi, M. (2020). Why do people use and recommend m-wallets? Journal of Retailing and Consumer Services, 56, 102091. https://doi.org/10.1016/j.jretconser.2020.102091
Khanra, S., Joseph, R. P., Dhir, A., & Kaur, P. (2020). Antecedents of the Barriers Toward the Adoption of Unified Payment Interface BT - Re-imagining Diffusion and Adoption of Information Technology and Systems: A Continuing Conversation (S. K. Sharma, Y. K. Dwivedi, B. Metri, & N. P. Rana (eds.); pp. 608–625). Springer International Publishing.
Kim, H., Xiang, Z., & Fesenmaier, D. R. (2015). Use of the internet for trip planning: A generational analysis. Journal of Travel and Tourism Marketing, 32(3), 276–289. https://doi.org/10.1080/10548408.2014.896765
Kumar, R., Kishore, S., Lu, H., & Prakash, A. (2020). Security analysis of unified payments interface and payment apps in India. Proceedings of the 29th USENIX Security Symposium, 1499–1516.
Lakshmi, K. K., Gupta, H., & Ranjan, J. (2019). UPI Based Mobile Banking Applications - Security Analysis and Enhancements. Proceedings - 2019 Amity International Conference on Artificial Intelligence, AICAI 2019, 903–908. https://doi.org/10.1109/AICAI.2019.8701396
Liébana-Cabanillas, F. J., Sánchez-Fernández, J., & Muñoz-Leiva, F. (2014). Role of gender on acceptance of mobile payment. Industrial Management and Data Systems, 114(2), 220–240. https://doi.org/10.1108/IMDS-03-2013-0137
Madan, K., & Yadav, R. (2016). Behavioural intention to adopt mobile wallet: a developing country perspective. Journal of Indian Business Research, 8(3), 227–244. https://doi.org/10.1108/JIBR-10-2015-0112
Malladi, S. (2021). Towards Formal Modeling and Analysis of UPI Protocols. 2021 Third International Conference on Intelligent Communication Technologies and Virtual Mobile Networks (ICICV), pp. 239–243. https://doi.org/10.1109/ICICV50876.2021.9388452
Mallat, N., Rossi, M., Tuunainen, V. K., & Öörni, A. (2009). The impact of use context on mobile services acceptance: The case of mobile ticketing. Information and Management, 46(3), 190–195. https://doi.org/10.1016/j.im.2008.11.008
Mallat, & Tuunainen. (2008). Exploring Merchant Adoption of Mobile Payment Systems: An Empirical Study. E-Service Journal, 6(2), 24. https://doi.org/10.2979/esj.2008.6.2.24
Mallik, P. K., & Gupta, D. (2021). A Study on Factors Influencing Consumer Intention to Use UPI-Based Payment Apps in Indian Perspective BT - Information and Communication Technology for Intelligent Systems (T. Senjyu, P. N. Mahalle, T. Perumal, & A. Joshi (eds.); pp. 445–452). Springer Singapore.
MAS. (2021). Singapore’s PayNow and India’s UPI to Link in 2022. Monetary Autority of Singapore. https://www.mas.gov.sg/news/media-releases/2021/singapores-paynow-and-indias-upi-to-link-in-2022
McKinsey. (2019). Digital India Technology to transform a connected nation. Retrieved from https://www.mckinsey.com/~/media/McKinsey/Business Functions/McKinsey Digital/Our Insights/Digital India Technology to transform a connected nation/MGI-Digital-India-Exec-summary-April-2019.pdf
Mint. (2019). Digital transactions to grow at a CAGR of 52% in next five years: SBI Cards. Mint. Retrieved from https://www.livemint.com/industry/banking/digital-transactions-to-grow-at-a-cagr-of-52-in-next-five-years-sbi-cards-11575372710071.html
Mishra, D. (2020). At 4,572 crore, digital payments surpass govt’s target for FY 20. TOI. Retrieved from https://timesofindia.indiatimes.com/business/india-business/at-4572cr-digital-payments-surpass-govts-target-for-fy20/articleshow/76882096.cms
Money Control. (2020). As UPI grows leaps and bounds, transaction failures increase, too. Money Control. Retrieved from https://www.moneycontrol.com/news/business/as-upi-grows-leaps-and-bounds-transaction-failures-increase-too-6029531.html
Money Control. (2021). Can 30% market share cap on UPI ever be implemented?
Morgan Stanley. (2020). India’s Millenials to Drive Growth in Four Key Sectors. Retrieved from https://www.morganstanley.com/ideas/India-millennials-growth-sectors
Nielsen. (2018). WHAT HANDSETS SAY ABOUT CONSUMERS. Retrieved from https://www.nielsen.com/in/en/insights/report/2018/what-handsets-say-about-consumers/
NPCI. (2019a). Introduction of P2PM category in UPI for unorganized or small merchants. Retrieved from https://www.npci.org.in/PDF/npci/upi/circular/2019/Circular 70 - Introduction of P2PM category in UPI for unorganized or small merchants.pdf
NPCI. (2019b). Levy of Surcharge by merchants and Channel partners prohibited in UPI. Retrieved from https://www.npci.org.in/sites/default/files/circular/Scan Documents.pdf
NPCI. (2020). NPCI gives approval for WhatsApp to ‘ Go Live ’ on UPI in a graded manner National Payments Corporation of India. Retrieved from https://www.npci.org.in/PDF/npci/press-releases/2020/NPCI-gives-approval-for-WhatsApp-to-Go-Live-on-UPI.pdf
NPCI. (2021a). NPCI International. Retrieved from https://www.npci.org.in/who-we-are/group-companies/npci-international
NPCI. (2021b). UPI Ecosystem Statistics. Retrieved from https://www.npci.org.in/what-we-do/upi/upi-ecosystem-statistics
NPCI. (2021c). UPI Product Statistics. NPCI. Retrieved from https://www.npci.org.in/what-we-do/upi/product-statistics
Omidyar Network. (2017). Currency of Trust: Consumer Behaviors and Attitudes Toward Digital Financial Services in India. Retrieved from https://www.omidyarnetwork.in/wp-content/uploads/pdfs/17-05-15_Currency_of_Trust_Report_DIGITAL_FINAL.pdf
Parment, A. (2013). Generation Y vs. Baby Boomers: Shopping behavior, buyer involvement and implications for retailing. Journal of Retailing and Consumer Services, 20(2), 189–199. https://doi.org/10.1016/j.jretconser.2012.12.001
PIB. (2021). Finance Minister Smt Nirmala Sitharaman and Finance Minister of Bhutan Mr Lyonpo Namgay Tshering jointly launch BHIM–UPI in Bhutan. Finance Minister Smt Nirmala Sitharaman and Finance Minister of Bhutan Mr Lyonpo Namgay Tshering jointly launch BHIM–UPI in Bhutan
PMGDISHA. (2020). Overview of PMGDISHA. Retrieved from https://www.pmgdisha.in/about-pmgdisha/
PTI. (2019). Government launches BHIM 2.0 with new functionalities, additional language support. Retrieved from https://www.thehindu.com/sci-tech/technology/government-launches-bhim-20-with-new-functionalities-additional-language-support/article29760051.ece
Rastogi, S., Panse, C., Sharma, A., & Bhimavarapu, V. M. (2021). Unified Payment Interface (UPI): A digital innovation and its impact on financial inclusion and economic development. Universal Journal of Accounting and Finance, 9(3), 518–530. https://doi.org/10.13189/ujaf.2021.090326
Razorpay. (2020). UPI Based P2P Transactions Will Attract Charges from Banks. 2020. Retrieved from https://razorpay.com/learn/upi-banks-transactions-charges-fees/
RBI. (2019a). Harmonization of Turn Around Time (TAT) and customer compensation for failed transactions using authorized Payment Systems. Retrieved from https://m.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=11693
RBI. (2019b). Payment and Settlement Systems in India: Vision- 2019-2021. Retrieved from https://rbidocs.rbi.org.in/rdocs/PublicationReport/PDFs/PAYMENT1C3B80387C0F4B30A56665DD08783324.PDF
RBI. (2019c). Report of the High Level Committee on Deepening of Digital Payments, 2019. Retrieved from https://rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=922
Rehncrona, C. (2018). Young consumers’ valuations of new payment services. International Journal of Quality and Service Sciences, 10(4), 384–399. https://doi.org/10.1108/IJQSS-11-2017-0111
SabPaisa. (2020). Learn the predictions for UPI payments in 2020. Retrieved from https://sabpaisa.in/learn-the-predictions-for-upi-payments-in-2020/
Sane, A., & Biradar, J. (2021). How far is indian society from digital payment system? In … Потенціалу Суб’Єктів Економічних Відносин Як … (Issue 9). ФОП Паляниця В.А. Retrieved from http://elartu.tntu.edu.ua/handle/lib/35250%0Ahttp://elartu.tntu.edu.ua/bitstream/lib/35250/2/NFEPSEV_2021_Sane_A-How_far_is_indian_society_from_73-78.pdf
Sarmah, R., Dhiman, N., & Kanojia, H. (2020). Understanding intentions and actual use of mobile wallets by millennial: an extended TAM model perspective. Journal of Indian Business Research, 13(3), 361–381. https://doi.org/10.1108/JIBR-06-2020-0214
SCIT. (2019). Review Of National Digital Literacy Mission (Ndlm) – Problems And Challenges. Retrieved from http://164.100.47.193/lsscommittee/Communications and Information Technology/17_Information_Technology_11.pdf
Seranmadevi, R., Praveenraj, D. D. W., & Natarajan, M. L. (2019). E- Wallet – a Technological Revolution in Digital India. Internation Journal of Innovative Technology and Exploring Engineering (IJTITEE), 8(11), 3870–3877. https://doi.org/10.35940/ijitee
Statista. (2021a). Number of smartphone users in India in 2015 to 2020, with estimates until 2025(in millions).
Statista. (2021b). Number of WhatsApp users in selected countries worldwide as of June 2021. Retrieved from https://www.statista.com/statistics/289778/countries-with-the-most-facebook-users/#:~:text=There are over 487 million,most popular messaging service worldwide.
T, R. (2019). Digital financial inclusion: A payoff of financial technology and digital finance uprising in India. International Journal of Scientific and Technology Research, 8(11), 3434–3438.
Tak, P., & Panwar, S. (2017). Using UTAUT 2 model to predict mobile app based shopping: evidences from India. Journal of Indian Business Research, 9(3), 248–264. https://doi.org/10.1108/JIBR-11-2016-0132
Teo, A.-C., Tan, G. W.-H., Ooi, K.-B., Hew Teck-Soon, & Yew, K. (2015). The effects of convenience and speed in m-payment. Industrial Management & Data Systems, 115(2), 311–331. https://doi.org/10.1108/IMDS-08-2014-0231
Thakur, R., & Srivastava, M. (2013). Customer usage intention of mobile commerce in India: An empirical study. Journal of Indian Business Research, 5(1), 52–72. https://doi.org/10.1108/17554191311303385
The Economic Times. (2019). No MDR charges applicable on payment via RuPay, UPI from Jan 1: Sitharaman. December 28, 2019. Retrieved from https://economictimes.indiatimes.com/industry/banking/finance/banking/no-mdr-charges-applicable-on-payment-via-rupay-upi-from-jan-1-sitharaman/articleshow/73008967.cms
The Economic Times. (2020a). CBDT asks banks to refund any fees levied on UPI transactions in 2020. The Economic Times. Retrieved from https://economictimes.indiatimes.com/industry/banking/finance/banking/cbdt-asks-banks-to-refund-any-fees-levied-on-upi-transactions-in-2020/articleshow/77835725.cms?from=mdr
The Economic Times. (2020b). Digital payments soar as Covid-19 fuels online transactions. The Economic Times. Retrieved from https://tech.economictimes.indiatimes.com/news/internet/digital-payments-soar-as-covid-19-fuels-online-transactions/76816169#:~:text=Nearly 76%25 of respondents were,of the Covid-19 pandemic
The Economic Times. (2021). NPCI arm, Network Int join hands for UPI payment system in UAE. Retrieved from https://economictimes.indiatimes.com/news/international/uae/npci-arm-network-int-join-hands-for-upi-payment-system-in-uae/articleshow/87784172.cms
The Hindu. (2020a). Demonetisation helped curb black money: Narendra Modi. Retrieved from https://www.thehindu.com/news/national/demonetisation-helped-reduce-black-money-increased-tax-compliance-gave-boost-to-transparency-says-modi/article33051970.ece
The Hindu. (2020b). NPCI puts 30% cap on volume for all third-party apps offering UPI.
The Print. (2021). Fake websites, UPI hacking — Delhi saw 190% rise in cyber frauds during lockdown, police say. Retrieved from https://theprint.in/india/fake-websites-upi-hacking-delhi-saw-190-rise-in-cyber-frauds-during-lockdown-police-say/608363/
The Times of India. (2021). Pay via UPI in 10 more countries. Retrieved from https://timesofindia.indiatimes.com/business/india-business/pay-via-upi-in-10-more-countries/articleshow/86184175.cms
Xiang, Z., Magnini, V. P., & Fesenmaier, D. R. (2015). Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet. Journal of Retailing and Consumer Services, 22, 244–249. https://doi.org/10.1016/j.jretconser.2014.08.005
Zhou, T. (2013). An empirical examination of continuance intention of mobile payment services. Decision Support Systems, 54(2), 1085–1091. https://doi.org/10.1016/j.dss.2012.10.034
Published
2022-12-09
How to Cite
Kumar, A., Choudhary, R. K., Mishra, S. K., Kar, S. K., & Bansal, R. (2022). THE GROWTH TRAJECTORY OF UPI-BASED MOBILE PAYMENTS IN INDIA: ENABLERS AND INHIBITORS. Indian Journal of Finance and Banking, 11(1), 45-59. https://doi.org/10.46281/ijfb.v11i1.1855
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Copyright (c) 2022 Abhishek Kumar, Rajesh Kumar Choudhary, Saroj Kumar Mishra, Sanjay Kumar Kar, Rohit Bansal
This work is licensed under a Creative Commons Attribution 4.0 International License.
