Journal of African Development

The study titled "Adoption of Unified Payments Interface (UPI) in Lucknow: Understanding User Behaviour and Personal Finance" explores how UPI has revolutionized financial transactions among Lucknow residents. UPI has seamlessly integrated into daily life for routine expenses like groceries and utilities, particularly post-COVID-19. However, its use for more complex financial services such as investments and insurance remains limited due to trust and awareness issues. The research focuses on understanding how user behaviour and personal finance are intertwined, highlighting that younger, educated individuals are more engaged with UPI, valuing its convenience and user-friendly platforms like Google Pay and PhonePe. Data from 146 respondents across diverse demographics revealed that UPI facilitates expense tracking, though effective budget management remains challenging. Despite a moderate positive correlation between favourable UPI usage and improved personal finance, issues like cyber fraud and data privacy concerns persist. From 2019 to 2022, Lucknow recorded 4,22,43,261 transactions through 230 bank branches, with digital payments contributing 2.5 crores (0.04%). This indicates a significant yet underutilized potential for digital financial growth. The study underscores the importance of financial literacy, targeted demographic education, and enhanced platform features to promote robust financial management. Policy recommendations focus on fostering digital inclusivity and responsible financial habits, addressing both the benefits and unintended consequences of rapid UPI adoption. By providing micro-level insights, this research contributes to a holistic understanding of how digital payment platforms impact personal finance, with implications for broader financial inclusion and economic stability