A STUDY OF DIGITAL PAYMENTS IMPACT ON CUSTOMER BEHAVIOUR AND ADOPTION OF UPI MOBILE WALLETS AMONG VARIOUS DEMOGRAPHICS AT HDFC BANK

Abstract

The rapid proliferation of smartphone penetration and digital infrastructure has fundamentally transformed the payments ecosystem in India. The Unified Payments Interface (UPI), launched by the National Payments Corporation of India (NPCI) in 2016, has emerged as the dominant digital payments rail, processing over 13.4 billion transactions worth ₹21.55 lakh crore in March 2024 alone. HDFC Bank, India’s largest private sector bank, has positioned itself as a key UPI enabler through its PayZapp wallet, UPIintegrated mobile banking app, and merchant payment solutions. This paper investigates the impact of digital payments on customer behaviour and examines the adoption patterns of UPI and mobile wallets across varied demographic segments—age, gender, income, education, and occupation—at HDFC Bank. Primary data was collected through structured questionnaires from 120 respondents, and secondary data sourced from NPCI reports, RBI circulars, and HDFC Bank annual reports. Findings reveal that adoption is highest among the 18–35 age cohort, salaried urban professionals, and post-graduate educated customers, while cash dependency persists among rural, elderly, and low-income demographics. The study identifies awareness gaps, infrastructure challenges, and trust barriers as primary adoption inhibitors and recommends targeted financial literacy campaigns, simplified UX design, and enhanced security communication to achieve inclusive digital payment adoption.