Sustainable growth towards achieving a cashless ecosystem and a surge in volume of digital payment users

Though computerization began in the 1980s, the effect of demonetization in 2016, coupled with COVID-19 digital stimulation, was a revolutionary move in digital innovation and transformation into a cashless ecosystem. Traditional banks and digital enablers embraced digital technologies to keep up with the dynamism in the payment landscape. The Government of India envisioned a “faceless, paperless, cashless” economy through effective implementation of the Digital India flagship program. A study on cashless payment and EU nations’ economic growth advocated the effects of adopting the cashless payment system can be perceived with the gradual development in innovation and technology in the long run. The study examined the surge in volume of digital transactions and users’ perspectives on the cashless ecosystem. The descriptive method used both first-hand information gathered by collecting and pooling 492 responses and information gathered from RBI and NPCI reports. We analyze the qualitative data using chi-square, one-way ANOVA, and DMRT tests. The quantitative data analysis employed CAGR, correlation, and linear regression analysis. Line graphs depict the trend in transaction volume and user activity. The perceived opinions revealed that the majority of respondents are convenient in using digital modes, though the concerns of security and identity sharing existed. However, the absolute volume of RTGS and mobile banking transactions has shown a significantly increasing trend compared to NEFT and internet banking transactions. The mode of RTGS and mobile banking transactions experienced a rapid increase, and the statistical results revealed a substantial and significant correlation with the volume of active mobile banking users.