A Study on Consumer Preference Towards Online Payment Systems in India

The rapid advancement of digital technology has significantly transformed India’s financial ecosystem, leading to increased adoption of online payment systems such as UPI, mobile wallets, internet banking, and card-based transactions. This study examines consumer preference towards online payment systems in India and identifies the key factors influencing their adoption and continued usage. The research is descriptive in nature and is based on primary data collected from 100 respondents using a structured questionnaire. The data were analysed using percentage analysis and ranking methods. The findings reveal that convenience, security, and ease of use are the most influential determinants of consumer preference. UPI emerged as the most preferred mode of digital payment due to its speed, accessibility, and user-friendly interface. Demographic factors such as age, education, and urban residence significantly impact adoption levels, with younger and educated respondents showing higher usage rates. Despite widespread awareness and frequent usage, challenges such as network issues, transaction failures, and security concerns persist. The study concludes that strengthening digital infrastructure, enhancing security measures, and promoting digital literacy can further accelerate the growth of online payment systems in India and support the transition towards a cashless economy