Role of Payment Systems in Financial Well-Being

Author:

Manda Vijaya Kittu1ORCID,Yadav Anuradha2ORCID,Khaliq Lubza Nihar3ORCID

Affiliation:

1. PBMEIT, India

2. Department of Management Studies, Dayananda Sagar College of Engineering, India

3. GITAM School of Business, GITAM University, India

Abstract

Payment systems play an essential role in the financial well-being of an individual. This chapter explores the connection between the two from India's payment revolution perspective. A multi-dimensional typology encompassing psychological factors and financial outcomes provides comprehensive knowledge of financial well-being. The digital payment ecosystem in India, driven by the Unified Payments Interface (UPI), is a compelling case study. The chapter underscores the significance of access to financial services, financial literacy, financial inclusion, and financial protection in promoting overall well-being. Recent trends highlight the growth of fintech startups and their contribution to expanding access to financial services. Adopting digital payment systems has influenced spending patterns, saving habits, and credit behavior, shaping individuals' financial behavior. However, challenges such as financial inclusion, literacy, and consumer protection need to be addressed.

Publisher

IGI Global

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