A Comprehensive Analysis of Customer Preference Towards Unified Payment Interface (UPI) Services

Abstract

Over the past decade, India has seen rapid growth in mobile phone penetration and internet connectivity, substantially reshaping the country’s digital economy. Supported by initiatives such as Digital India, digital payment modes have expanded across urban and semi-urban regions, with the Unified Payments Interface (UPI) playing a central role in promoting a cash‑lite, smartphone‑enabled payment environment. Increased accessibility via smartphones and social platforms has enabled continuous engagement with digital financial services. This study investigates customer preferences and perceptions that influence the adoption of UPI-based payment sources in Madurai District. A cross‑sectional, descriptive research design was employed, using a structured questionnaire administered to 151 adult UPI users selected through non-probability (convenience) sampling across urban and peri‑urban localities of Madurai. The instrument captured demographics, usage intensity, perceived usefulness, ease of use, trust, perceived risk, and satisfaction; data were analysed using descriptive statistics and inferential tests to assess associations between perceptions and adoption outcomes. The results indicate that favourable customer perceptions and preferences are positively and significantly associated with UPI adoption and usage intensity, underscoring their role in deepening digital payment use and informing local policy and provider strategies in the region.