Impact of Digital Payment Systems (UPI & Google Pay) on Cashless Economic Growth

Abstract

This research project examines the impact of digital payment systems particularly UPI and Google Pay on India’s movement toward a cashless economic ecosystem. With digital transactions growing exponentially in recent years, understanding how they influence financial behaviour, merchant operations, and economic growth has become increasingly important. The study identifies the existing organizational and economic problem: although digital payment usage is rising, many regions still depend heavily on cash due to limited awareness, digital illiteracy, mistrust, and infrastructural challenges. The research adopts a mixed-method approach combining primary data (household and merchant surveys) with secondary data from NPCI and RBI to evaluate changes in spending patterns, sales growth, transaction transparency, and levels of financial inclusion. The analysis highlights how UPI and Google Pay contribute to faster payments, reduced cash handling, improved business efficiency, and increased formalization of transactions.