Identification and Analysis of Problem Faced in Use of Unified Payment Interface (UPI) System

Abstract

Unified Payment Interface is embedded with innovative technology for payment with different extended features such as instant money transfer, no need of banking details etc. This system modernized the way of doing payment in the digital payment background of India and now it becomes the vital instrument for India to become a cashless economy. However, instead of UPI continuous popularity, there are different barriers or problems which affect its widespread adoption. The present study is related to identify and analyses and then highlight the crucial problems that slow down the UPI system adoption. The Primary data collected through the use of “Structured Questionnaire” in Google form. The research is descriptive and analytical in nature. In present study  on the basis of “Exploratory Factor analysis” problems are identified that individual experiences under four category such as Infrastructural Problem, Technical Problem, Security Type and User Experience issues and on the basis of mean ranking it is found that banking server issue(infrastructural),Transaction failure issue (Technical), Public Wi-Fi security risks, Threat of payment on fake merchant websites(Security issue) and Delayed refund of blocked amount(User experience issue) are the key problems under different dimension faced by many consumer. The results of this study will be also substantial for policymakers, technology providers and financial institutions for usage of UPI at wide level and also to promote digital financial inclusion in India which ultimately contribute more to an “Inclusive and Cashless economy”.