Unlocking Unified Payment Interface (UPI): Exploring UPI Adoption and Usage among Generation Z

Abstract

The proliferation of Unified Payment Interface (UPI) has profoundly reshaped the digital payment ecosystem in India. UPI’s emergence has notably enhanced the convenience and accessibility of digital payments for millions across the nation, concurrently diminishing reliance on cash transactions. This article aims to investigate how various behavioural factors influence the behaviour intentions of Generation Z regarding the usage of UPI while also identifying the primary use cases of UPI for this demographic. Integrating an extended Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) model with generational cohort theory, this study delves into the effects of various behavioural factors on Gen Z’s UPI usage behaviour intentions. Data from 308 respondents were collected via Google Forms for analysis. Regression results indicate that facilitating conditions, habits, social influence, and perceived transaction risk significantly impact behaviour intentions concerning UPI usage. Additionally, the study reveals that person-to-person money transfers and online and offline payments are the top UPI cases utilized most among Generation Z