DIGITAL PAYMENT ECOSYSTEM IN INDIA: A STUDY ON INTEROPERABILITY DURING THE COVID-19 CRISIS

Abstract

The Prime Minister's plan, the "Digital India Program," will spur innovation across all industries. The COVID-19 period increase the use of digital payment system because of the social distancing rules and lockdown situation. During COVID-19 period, there is a need to quickly transform traditional payment mode to digital payment mode. The world need to adapt new ways of life and work. Since 2016, government has made a concerted effort to promote online payments, beginning with demonetization. Many digital and Indian economic actions were motivated by "Digital India" campaign., unstructured support data (USSD), the Aadhaar Enabled Payment System (AEPS), integrated payments, Bank car bank prepaid cards, and other ways of digital payment are available in India. The COVID-19 pandemic has significantly accelerated the adoption of digital payment systems across India, highlighting the critical role of interoperability in the digital payment ecosystem. This research explores the interoperability of various digital payment platforms in India during the COVID-19 crisis, examining how seamless integration between different payment systems, such as Unified Payments Interface (UPI), mobile wallets, and traditional banking channels, contributed to the broader acceptance and usage of digital payments. The study investigates the role of government initiatives and policies in enhancing system compatibility. Through a combination of qualitative and quantitative data, the research highlights the lessons learned during the pandemic, provides insights into the strengths and weaknesses of India’s digital payment infrastructure, and proposes recommendations for future improvements to ensure a more inclusive and efficient digital payment ecosystem. Here, we explore scenarios of increase in the amount of digital payment system pre and post COVID-19 period in India.