Exploring Consumer Preferences and Behaviour Toward Digital Payment Gateways in India

Abstract

This study explores consumer behaviour and preferences towards digital payment gateways in India, focusing on the factors that drive consumer choices and satisfaction. A structured survey with a stratified random sample of 1,000 respondents across India was conducted between January and April 2024. The study is grounded in three hypotheses, testing the differences in perceived convenience, trust in security, and the impact of cashback and rewards on consumer recommendations for digital payment platforms such as Phone-Pe, Google Pay, and Paytm. Statistical analyses were used to scrutinize the data, including ANOVA, chi-square tests, and Pearson’s correlation. Key findings indicate significant differences in convenience and trust levels among platforms, with convenience and rewards strongly correlating with consumer recommendations. The results suggest that enhancing convenience and security perception alongside attractive reward schemes can significantly influence consumer adoption and loyalty. Although this study offers useful information for stakeholders seeking to optimize digital transactions in emerging markets, it also has significant implications for complex preferences in Indian digital payment systems. The implications of these findings extend to the strategic development of tailored and consumer-friendly digital payment solutions. Furthermore, this study emphasizes the need for continuous innovation in digital payment technologies to better meet consumers' evolving demands. Implementing robust security measures and user-centric design can help build trust and simplify the payment process, thereby increasing user engagement and satisfaction. This research adds to the existing body of knowledge on digital payment preferences and provides a solid foundation for future strategic developments in this rapidly growing field.