The rapid advancement of financial technology has significantly transformed the payment ecosystem, leading to the widespread adoption of digital payment systems across India. Among various digital payment methods, the Unified Payments Interface (UPI) has emerged as one of the most preferred platforms due to its convenience, speed, security, and interoperability. The present study examines the changing trends in digital payments and consumer preference toward UPI applications. The study is based on primary data collected from 300 respondents using a structured questionnaire. Descriptive statistics and non-parametric statistical techniques, including the Mann–Whitney U test, were employed to analyze the data and examine consumer preferences across selected demographic groups.

The findings indicate that government initiatives, technology adoption, merchant acceptance, digital infrastructure, and rewards and promotional offers play an important role in influencing digital payment trends. The study also reveals that consumers generally prefer UPI applications because of their ease of use, transaction speed, security, customer support, and widespread acceptance among merchants. Furthermore, the analysis suggests that demographic characteristics such as gender do not significantly influence consumer preference toward UPI applications across the selected dimensions. The results emphasize the importance of enhancing digital infrastructure, strengthening security mechanisms, improving service quality, and increasing digital financial awareness to promote the sustainable growth of digital payments. The study provides valuable insights for policymakers, banks, fintech companies, merchants, and researchers by identifying the key factors influencing consumer preference and supporting the development of customer-centric digital payment strategies..