Understanding Rural Consumers' Perception and Usage of Modern Payment Platforms
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Abstract
Digital payment systems have emerged as transformative financial technologies worldwide, yet their adoption in rural India presents unique challenges and opportunities. This customer-centric study examines the factors influencing digital payment adoption in rural Indian contexts, analyzing barriers to implementation and strategies for enhanced financial inclusion. Using a comprehensive literature review and theoretical framework, this research investigates the interplay between technological infrastructure, digital literacy, economic factors, and cultural considerations in shaping rural customers' digital payment behaviors. The findings reveal that while government initiatives like demonetization and COVID-19 pandemic responses have accelerated digital payment adoption, significant challenges remain in rural areas including limited internet connectivity, low digital literacy, trust issues, and inadequate merchant acceptance networks. This study contributes to the understanding of digital financial inclusion in emerging economies and provides recommendations for policymakers and financial service providers to enhance rural digital payment ecosystem development.
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