Diffusion of digital payments in India, 2011–2012 through 2020–2021: role of its sectoral system of innovation

Abstract

ABSTRACT The aim of the paper is to analyse the extent to which digital payments in India have diffused since its introduction around 2010. The paper measures diffusion in terms of the rates of growth of digital payments in both volume and value terms and then employing the sectoral system of innovation framework to identify the factors that are crucial for its faster diffusion. The paper shows that despite its existence for more than a decade, digital payments have not diffused in value terms. The main factor identified for its slower diffusion is a decline in the rate of growth of real per capita income.