Vol. 7, Issue 2, Part M (2025)

The growth of digital payment systems in India marks a major shift in the country's financial landscape. The use of platforms like UPI, digital wallets, internet banking, and contactless payments has completely transformed the way people and businesses transact. This study assesses the rise, trends, challenges, and future prospects of digital payments using secondary data from the RBI, NPCI, and government reports. The findings show that India has made significant progress, but challenges such as cybersecurity risks, low digital literacy, and a lack of infrastructure remain. The paper concludes with suggestions to make digital payments more inclusive, secure, and sustainable.