The Digital Shift: Impact of Banking and Payment Systems on Customer Experience in India

Abstract

This research examines the transformative effects of digital banking and payment systems on customer experience in India, focusing on the impact of consumer awareness, attitudes, perceived risks, and demographic factors on digital payment behaviours. The findings reveal that positive consumer attitudes significantly drive the usage and acceptance of digital payment systems, with 87.2% of consumers actively engaging with these technologies. However, perceived risks remain a substantial barrier to broader adoption. The study underscores the necessity for targeted education and communication strategies aimed at mitigating security concerns and building consumer confidence. It highlights that younger and more educated demographics are more open to adopting digital payments, suggesting that outreach should be customized to effectively reach diverse groups. Additionally, the integration of Blockchain technology is recommended to enhance security, transparency, and efficiency, further fostering consumer trust. As the financial industry increasingly embraces sustainability, incorporating eco-friendly practices—such as reducing paper usage—can resonate with the 78.3% of users who prioritize convenience and environmental responsibility. Overall, while the digital transition in banking offers significant opportunities to enhance customer experience, increasing awareness and trust is vital for the successful implementation of digital payment systems in daily transactions