MBA Journals Peer-reviewed management research from Consortium e-Learning Network

NOLEGEIN Journal of Information Technology & Management

The Evolution of Digital Payments in India: Assessing Impacts and Adoption Trends Before and After Demonetization

  1. Nitesh Dubey
  2. P. K. Bajpai
  3. R. K. Khatik

Abstract

This study investigates the evolution of digital payment systems in India, analyzing the impact of demonetization on adoption trends and perceptions before and after the policy change. The research employs a mixed-method approach, utilizing a structured questionnaire to gather quantitative data from a stratified sample of Indian residents. The questionnaire explores demographic factors, frequency of digital payment usage, changes in cash usage post-demonetization, perceived security, satisfaction levels, and readiness for a cashless economy. Statistical analysis including Chi-Square tests, Wilcoxon Signed-Rank employed to analyze the data and draw insights into the factors influencing digital payment adoption. Qualitative insights from open-ended responses will complement quantitative findings. The study aims to provide a comprehensive understanding of India's cashless system, offering insights that can inform policies and strategies to promote further adoption of digital payments in the country. The result reveled that Demonetization didn't change the amount of cash in the economy much, and the economy grew at a similar rate before and after demonetization. However, people faced some immediate problems because of it. Also, after demonetization, more people started using digital payments instead of cash. the public faced a number of difficulties in the immediate wake of demonetization. Despite these difficulties, the use of digital payment systems increased noticeably after demonetization, suggesting a change in customer behaviour toward cashless purchases. This change indicates the possibility of a further integration of digital payment systems into regular economic activity in India.
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