Comparative Analysis of Digital Payment Adoption during Demonetization and the Covid-19 Pandemic: A Study of Chennai.

Abstract

This study highlights the transformation of digital payment systems from the period of demonetization to the time of the COVID-19 pandemic. The initial shift was prominently observed during demonetization, when people moved away from cash transactions and adopted digital payment methods. During the pandemic, the need for maintaining social distance and adopting contactless payment options further encouraged individuals to rely more heavily on digital modes of payment rather than using physical cash. The increasing frequency of digital transactions reflects the steady growth of a digital India. Residents of Chennai found digital payments to be highly convenient during the pandemic period. Based on the results of the significance test, it is concluded that the COVID-19 pandemic accelerated the adoption of digital payment systems. The findings reveal that nearly half of Chennai’s population began using digital payments during the pandemic. Thus, achieving a vision of a fully digital India characterized by reduced corruption, greater accountability, and enhanced transparency is no longer a distant goal.