Exploring the Shift in Consumer Behavior toward Cashless Payments after the Covid-19 Pandemic


Authors : Bijin Philip; Ayushi Gupta

Volume/Issue : Volume 9 - 2024, Issue 11 - November

Google Scholar : https://tinyurl.com/2jebjn3t

Scribd : https://tinyurl.com/erpzcfzy

DOI : https://doi.org/10.38124/ijisrt/IJISRT24NOV892

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Abstract : The COVID-19 outbreak disturbed daily life worldwide, prompting a swift shift toward digital payments as consumers increasingly sought safer, contactless options over cash transactions. Both individuals and businesses adapted to digital platforms marking a new era of cashless transactions. This paper aims to examine the transition to a digital payment system in India post-COVID-19, analyze changes in consumer behavior and preferences towards cashless payment methods, and assess the future potential of cashless transactions in the country. This research is based on primary and secondary data using a structured questionnaire to gather insights from 308 respondents in metropolitan cities. A mixed-methods approach ensures a comprehensive understanding of the factors driving this transition. By analyzing data from the National Payments Corporation of India (NPCI), which reports a surge in number of banks live on UPI from 21 in April 2016 to 622 by September 2024, this research explores how platforms like UPI, mobile wallets, and contactless payments have redefined financial accessibility and consumer preferences. The result indicates that this shift has not only changed every day financial transactions but also increased financial inclusion in rural and semi-urban areas. This study offers valuable insights into the evolving digital payment landscape in India and proposes strategic recommendations for ensuring a secure and inclusive cashless economy.

Keywords : Cashless Economy; Digital Transactions; Technological Advancements; Customer Preferences; Government Policies and Regulation.

References :

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The COVID-19 outbreak disturbed daily life worldwide, prompting a swift shift toward digital payments as consumers increasingly sought safer, contactless options over cash transactions. Both individuals and businesses adapted to digital platforms marking a new era of cashless transactions. This paper aims to examine the transition to a digital payment system in India post-COVID-19, analyze changes in consumer behavior and preferences towards cashless payment methods, and assess the future potential of cashless transactions in the country. This research is based on primary and secondary data using a structured questionnaire to gather insights from 308 respondents in metropolitan cities. A mixed-methods approach ensures a comprehensive understanding of the factors driving this transition. By analyzing data from the National Payments Corporation of India (NPCI), which reports a surge in number of banks live on UPI from 21 in April 2016 to 622 by September 2024, this research explores how platforms like UPI, mobile wallets, and contactless payments have redefined financial accessibility and consumer preferences. The result indicates that this shift has not only changed every day financial transactions but also increased financial inclusion in rural and semi-urban areas. This study offers valuable insights into the evolving digital payment landscape in India and proposes strategic recommendations for ensuring a secure and inclusive cashless economy.

Keywords : Cashless Economy; Digital Transactions; Technological Advancements; Customer Preferences; Government Policies and Regulation.

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