Insights into the Use of UPI Payment Applications by Management Students in India

Abstract

Today, with the penetration of smartphones coupled with the cheap availability of data, cashless payments have become the norm. Unified Payment Interface is an interbank payment system which works in real time and which is a major medium of cashless payments. Unified Payment Interface or UPI applications like Google Pay have taken over the traditional bank account transfers. The government of India which is keen on promoting cashless ecosystem in the country is also pushing for the adoption of these applications across the nation. According to government data, UPI payments now fulfils about half of the cumulative number of digital transactions in India. National Payment Corporation of India (NPCI) data shows that the sum total of UPI transactions in India were 1.31 billion in December,2019 alone. Management Students in India studying across various Business Schools in in India are the one of the major chunk users of such applications. UPI payments applications ensure hassle free transfer of funds which is ideal for youth who have high frequency, low-value transactions. UPI also ensures 24*7*365 availability. The focus of this research paper is on understanding some factors which influence the customer satisfaction of educated youth in India. The research was conducted using primary data collected from current and prior users of the major UPI applications in India. Factors affecting usage of UPI Payment Applications (User Behavior) like Performed Expectancy, Security, Social Influence, Habit and Effort Expectancy were analyzed to be a part of the research. Data of 102 valid responses from Management Students was analyzed by conducting reliability testing, exploratory factor analysis and multiple regression.

Keywords: UPI, Digital Payments, Demonetization, Reliability Testing, Exploratory Factor Analysis, Multiple Regression