COMPARATIVE STUDY OF DIGITAL PAYMENT IN RURAL AND URBAN AREAS OF GWALIOR DISTRICT (MP): CHALLENGES, SATISFACTION AND IMPACT

Abstract

While digital payment has spread rapidly across India, its users continue to encounter obstacles, and the experience of using digital payment differs considerably between rural and urban settings. This study undertook a comparative analysis of the challenges faced in using digital payment, the satisfaction users derive from it, and its impact on financial behaviour, between the rural and urban areas of Gwalior district in Madhya Pradesh. A descriptive and comparative survey design was adopted, and data were collected from 400 respondents—200 urban and 200 rural—through a structured questionnaire. The findings show that rural users face significantly greater challenges than urban users, chiefly poor internet connectivity, low digital literacy, and concerns about fraud and security, whereas urban users report relatively higher satisfaction with speed and convenience. Digital payment was found to influence financial behaviour in both settings—encouraging record-keeping, reducing dependence on cash, and supporting savings—though the effect was stronger among urban users. The study concludes that addressing rural-specific challenges is essential to translate access into satisfying and beneficial use, and it offers recommendations for providers and policy-makers.