PROBLEMS OF DIGITAL PAYMENT SYSTEM: A STUDY WITH REFERENCE TO CHENNAI CITY

This study examines the key problems associated with digital payment systems with special reference to Chennai city. The rapid growth of digital transactions has transformed the urban payment landscape. One major issue is the digital divide, where sections of the population lack access to smartphones, stable internet connectivity, or digital literacy. Security concerns such as cyber fraud, phishing, data breaches continue to affect user trust and adoption. Technical glitches, including server downtime and transaction failures, also disrupt user experience. Many small merchants face difficulties in handling transaction charges and adapting to new technologies. Privacy concerns regarding the misuse of personal and financial data further discourage some users. In addition, inadequate grievance redressal mechanisms create frustration among customers. Language barriers and limited awareness programs hinder effective utilization among elderly and less educated groups. The study aims to analyze these issues through empirical investigation within Chennai city. It seeks to understand user perceptions, merchant experiences, and institutional support systems. By identifying the major obstacles, the research intends to suggest practical recommendations for improving digital payment adoption. Overall, the study contributes to strengthening a secure, inclusive and efficient digital payment ecosystem in Chennai.