Digital Payment System: A Comprehensive Study of Emotional, Cultural, And Religious Barriers to Mobile Payment Adoption in India

Abstract

Cash still has a significant hold on many aspects of Indian society, despite the country's remarkable acceptance of digital payments over the past ten years due to fintech breakthroughs, ubiquitous smartphone use, and concerted government measures. This study examines the more profound sociocultural, emotional, and theological factors that underlie people's continued desire for cash despite the development of sophisticated digital infrastructure.

Even with the quick rise of UPI-based apps, mobile wallets, and QR-based payment methods, a sizeable portion of Indians still use cash transactions, particularly in situations that are strongly tied to custom, emotion, and religion. This study focuses on the little-known behavioral and cultural factors that contribute to the deliberate avoidance or distaste for digital payments in particular contexts, including religious contributions, weddings, gift-giving traditions, and sentimental interpersonal transactions, despite their accessibility and availability.

In Indian temples, for example, the majority of followers prefer to show their devotion by giving priests and deities cash offerings, or Dakshina. Giving money in person is regarded as a sacred act that is connected to spiritual and emotional intentions and cannot be replicated by digital payments. Similarly, it is traditional to present Shagun (monetary blessings) in cash envelopes during marriages. This procedure is a cultural ritual that has been carried down through the generations, not just a transaction. In order to show affection and blessings in a material way, family members frequently give cash to youngsters or young family members. Furthermore, digital payments are either inaccessible, unwanted, or viewed as improper when helping beggars or paying traditional service providers like pandits, barbers, or employees in rural areas.

The study used a mixed-method approach, integrating primary insights from surveys and interviews with secondary data from papers and journals. These comprise answers from people in a variety of age groups, religious backgrounds, and urban/rural locations. The results show that the main reasons why people continue to use cash in these situations are emotional comfort, generational patterns, lack of digital literacy, trust concerns with technology, and the symbolic value of actual money.
The goal of this study is to refute the simplistic claim that digital adoption is solely a technological or infrastructure issue. Rather, it asserts that psychological and sociocultural elements are crucial in shaping financial behavior. Digital education and regulatory changes can hasten the adoption of digital technology, but they must take into account the cultural values and individual feelings that influence daily financial transactions.

The report concludes by emphasizing that India's transition to a fully digital economy must take into account the emotional and cultural factors that are entwined with the use of cash. In order to develop inclusive financial systems that go "beyond infrastructure" and address the human factors that actually affect adoption, it is imperative that these hurdles be recognized and respected. Governments, fintech firms, and social academics are among the stakeholders urged by the study to include cultural sensitivity in the planning and execution of upcoming digital payment systems.