Digital Payment System and the Transformation of Retail Investment in India: The role of NPCI

Abstract

This study explores the impact of digital payment systems on retail investments in India, focusing on the National Payments Corporation of India (NPCI) and its role in enhancing transactional efficiency. The rapid evolution of the digital payment landscape is driven by improved mobile connectivity, infrastructure advancements, and initiatives like Digital India. These changes are transforming how retail investors engage with the stock market and investment opportunities. Utilizing a quantitative approach, the research analyzed data from 157 retail investors to assess the relationship between digital payment methods, investment behavior, and transactional efficiency. Findings reveal that digital payment systems significantly influence retail investing by facilitating quicker and more convenient transactions. Factors such as a preference for digital payments, perceived convenience, and the impact of the Unified Payment Interface (UPI) contribute to increased investment frequency. The study underscores NPCI's vital role in developing the digital payment infrastructure, promoting transactional efficiency and financial inclusion. However, it also highlights the need to address security and trust concerns to encourage continued usage and enhance investor confidence. The implications are significant for financial institutions, policymakers, and investors, emphasizing the importance of leveraging digital payment technology for a more efficient and inclusive investment landscape in India.

Keywords: Digital Payment Systems, Retail Investments, Transactional Efficiency, Investment Behavior, Security, Infrastructure Development