Comparative Analysis of UPI and Traditional Banking Methods: User Trust and Security Perceptions

https://doi.org/10.34047/MMR.2024.11202

Abstract

The digital payments landscape has changed dramatically with the advent of the Unified Payment Interface (UPI) in India, creating a new paradigm that differs from traditional banking systems This study compares UPI with traditional banking systems, focusing on the user’s security and reliability perspective. The aim of this study is to investigate and measure the underlying factors influencing consumer behavior towards the security and reliability of two-way payments in the context of expanded use of digital payment solutions. The study uses a mixed-methods approach to determine the effects of age, income, and education on these perceptions by combining quantitative surveys with qualitative interviews across a range of demographic cohorts. A pre-arranged survey has been distributed. In order to provide a thorough grasp of the security features, user experiences, and trust dynamics inherent to UPI and traditional banking, statistical and thematic analysis will reveal trends and themes. It is anticipated that the results will demonstrate the relative advantages and disadvantages of each system, providing practical advice for improving security protocols and trust-building tactics. This study aims to assist policymakers, financial institutions, and payment service providers in fine-tuning digital payment systems to promote increased user trust and security, thereby facilitating wider acceptance and usage. It does this by adding to the theoretical and practical understanding of digital payment adoption.