Challenges and Prospects in the Adoption of Mobile Payment Systems in India

Abstract

This paper presents a comprehensive analysis of the mobile payment ecosystem in India, focusing on its evolution, current challenges, and prospects. With the rapid advancement of digital technologies and a significant shift in consumer behaviour, mobile payments have become a pivotal component of India’s financial landscape. This study is based on an extensive literature review, encompassing academic journals, industry reports, and government publications, offering a multi-faceted perspective. The paper delves into the critical role of consumer trust and security concerns, emphasising the impact of cybersecurity threats and privacy issues on the adoption of mobile payment technologies. Significant attention is given to the cultural and behavioural aspects influencing the adoption of mobile payments in India, including the deep-rooted preference for cash transactions and varying degrees of digital literacy across different demographics. The study further examines the evolving regulatory landscape, analysing how policy frameworks adapt to technological advancements and consumer protection needs. The paper concludes with strategic recommendations for various stakeholders, including service providers, policymakers, and educators, to overcome current barriers and enhance mobile payment adoption. This study contributes to the existing body of knowledge by providing a holistic view of the mobile payment scenario in India and offering insights into its complexities and potential pathways for growth and sustainability in the digital era.