The Impact of Perceived Usefulness, Ease of Use, and Facilitating Conditions on Consumer Adoption of UPI Platform - A Structural Equation Model Approach

Abstract

Objective:

In India, UPI is a means of payment that allows users to transfer money in real time between bank accounts via mobile devices. The study investigates factors influencing users' intention to adopt the Unified Payment Interface (UPI) in India and the relationship between customer preferences for UPI payment systems

Research Methodology:

A comprehensively designed questionnaire was employed to collect data from 239 participants for the study. The SEM & CFA Model was employed to analyse the relationship between variables such as ease of use, facilitating conditions, and perceived usefulness with consumers' intentions and actual usage of UPI payment platforms.

Results:
Consumers demonstrated a positive intention towards using UPI as a payment channel. The study highlights the rapid growth of UPI adoption in India, evidenced by the rise in both transaction volume and the number of participating banks, which grew from 21 banks in the 2016 launch year to 605 banks in July 2024.

Originality:
The research provides fresh insights into how technological advancements have transformed digital payments, particularly in the Indian context and can be followed internationally to develop payment platforms.

Practical Implications:

The findings underscore UPI's potential to drive cashless transactions by providing a user-friendly, real-time payment platform. It highlights the importance of raising awareness, especially in rural areas, to expand the adoption of UPI, which could benefit small businesses and traders by facilitating seamless online payments.