Published Online:August 2025
Product Name:The IUP Journal of Bank Management
Product Type:Article
Product Code:IJBM020825
DOI:10.71329/IUPJBM/2025.24.3.24-36
Author Name:Manikandan C
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:24-36
This study investigates the factors influencing unified payments interface (UPI) adoption in Kerala. Primary data from 468 respondents were analyzed using a probit regression model. The analysis indicates that age is negatively associated with adoption, whereas education, income, digital literacy, trust in digital systems, and frequency of smartphone use are positively associated. Digital literacy, trust, and smartphone usage exhibit the strongest marginal effects, highlighting their importance in adoption behavior. Physical access to smartphones is necessary, but its impact increases when combined with trust and sufficient digital skills. Robustness checks with a logit regression model and linear probability model (LPM) confirm these results. These findings suggest that policy interventions should focus on expanding smartphone access, enhancing digital skills, and fostering trust to promote inclusive adoption of digital payment systems.
The adoption of unified payments interface (UPI) has significantly transformed financial transactions in India by facilitating efficient mobile-based payments. Kerala’s high literacy rate and advanced digital infrastructure make it a suitable context for analyzing the determinants of individual UPI adoption.