Understanding UPI Payment Adoption Among Rural Women: Insights from the Technology Acceptance Model

Abstract

The UPI payment applications were introduced in India in 2016 to facilitate hassle-free financial transactions. While urban populations have widely adopted UPI payment applications, this is not the scenario in rural India, particularly among women. The readiness of rural women to adopt UPI payment applications is considered a critical issue in understanding the effectiveness of the UPI payment system in rural India. Identifying the important factors influencing the adoption of UPI payment applications is crucial. This research aims to determine the most important determinants influencing UPI payment application usage among women in rural India. The researchers have adopted the Technology Acceptance Model ( TAM) and used Structural Equation Modelling (SEM) to test the hypotheses in the proposed model. The results show that, although women find the UPI usefulness, this recognition does not lead to a positive attitude toward the technology. The reasons include financial illiteracy, cultural factors, and technical challenges. At last, the findings have practical implications for the government and policymakers to enhance education and infrastructure to support rural women in adopting UPI payment system.

Keywords: Keywords: UPI payment system, Rural India, Rural women, TAM Model, Adoption rate