THE UPI EFFECT: HOW TRUST AND CONVENIENCE SHAPED PAYMENT BEHAVIOUR

Abstract

The rapid adoption of Unified Payments Interface has fundamentally altered the digital payment ecosystem in India. By 2022, UPI had emerged as the dominant mode of retail digital transactions, surpassing traditional card-based and wallet-driven payment systems. This study examines how trust and perceived convenience influenced consumer payment behaviour during this period of accelerated digital transformation. The research focuses on key dimensions such as system reliability, transaction security, ease of use, and institutional trust, and how these factors collectively shaped user acceptance and habitual usage of UPI platforms. Using a behavioural perspective, the paper analyzes the drivers behind sustained adoption beyond initial trial phases. The findings aim to contribute to the understanding of digital financial behaviour in emerging economies, with specific emphasis on policy-driven payment infrastructures. The study holds relevance for financial institutions, regulators, and platform providers seeking to enhance user engagement and long-term trust in digital payment systems.