The IUP Journal of Applied Finance
Trends and Structure of Digital Payments in India: A Non-Parametric and Post Hoc Analysis

Article Details
Pub. Date : July, 2023
Product Name : The IUP Journal of Applied Finance
Product Type : Article
Product Code : IJAF040723
Author Name : Sweta Lakhaiyar and Mukta Mani
Availability : YES
Subject/Domain : Finance
Download Format : PDF Format
No. of Pages : 23



The paper aims to study the trends and structure of digital payments in India in the last decade. It is important to note that the volume has increased faster than the value of digital payments. The average value of digital transactions has been coming down, which means that there has been increased usage of digital mode for smaller value payments by retail users, demonstrating widespread adoption of digital payments in the country. The paper also aims to determine whether all the digital payment methods have the same growth trend on the retail front. The Friedman test and post hoc analysis have been used to analyze the growth pattern.


Previous research indicates that there is a strong relationship between digital financial inclusion and poverty alleviation. As shown in Figure 1, poverty can be reduced by enhancing employment opportunities. From time to time, the Indian government has launched various employment-oriented programs. However, according to Vyas (2018), in India, around 18.6 million people are jobless, and 393.7 million people work in poor-quality jobs. One of the reasons for the limited success of employment generation programs is corruption at intermediate levels (Alam and Alam, 2014). Direct communication between the government and its citizens through digital financial inclusion can help achieve the required target of these programs (Ozili, 2018).