Acceptance of Digital Payment in Rural India: Challenges Ahead

Abstract

Technology is employed by digital payment systems to enable users to make purchases on digital platforms. The adoption of digital payments is more challenging in rural areas due to a variety of factors, such as a lack of digital infrastructure, limited access to mobile phones and formal banking services, low income, cultural and socioeconomic constraints, and other factors. Urban areas, on the other hand, have a high level of digital payment usage. The digital payment systems are inaccessible to rural consumers due to their lack of financial and digital literacy. This results in substantial disparities. The objective of this study is to emphasize the factors that influence the acceptance of digital payments in rural areas. The present also identifies the present status of digital payment along with the opportunity and challenges in adoption of the digital payment system and also proposes a theoretical model to show the relationship between the factors impacting the adoption of digital payment, attitude of consumer and adoption of digital payment. The theme of the research aligns with Goal 9: Industry, Innovation, Technology and Infrastructure and Goal 11: Sustainable cities and communities of SDGs as proposed by UN in 2015