A Study on UPI Transaction Failure Even After Money Is Deducted.
Authors: Vivek Rakshe-99
Sushant Shinde-103
Gaurav Ughade-107
Introduction:
Many people use UPI apps like Google Pay, PhonePe, and Paytm to send money quickly and easily. However, sometimes payments fail because of network or server problems. In some cases, even when the payment fails, the money is still deducted from the user’s bank account. After that, users have to wait for the refund process to complete. The refund may take several hours or even a few days. This situation creates inconvenience for users, especially during urgent payments. Because of such problems, some people start losing trust in the UPI payment system managed by the National Payments Corporation of India.
Objectives of the Study:
“To Understand the Issue of The Underlying Problem”
Literature Review:
1)“Factors Influencing Consumer Adoption and Satisfaction with UPI Payments.”
Banerjee and Saha (2021) and Vidhya and Sankar (2023) highlight that although digital payments and UPI are widely accepted by consumers, several challenges still affect their usage and satisfaction. Many studies indicate that users generally have a positive perception of UPI because it offers convenience, speed, and ease of transactions. However, issues such as server downtime, payment failures, technical glitches, and connectivity problems often reduce user satisfaction. Researchers such as Ramya and Sandhiya (2023) and Sankararaman et al. (2023) found that despite frequent technical issues, most users continue to use UPI due to its benefits. Other studies including Jain and Punjabi (2022) and Thirupathi and Akula (2022) emphasize that infrastructural limitations, security concerns, and dependence on cash still influence UPI adoption. Further research by Bhuvaneswari et al. (2021), Gupta and Hakhu (2021), and Saxena and Tripathi (2021) shows that security, privacy concerns, digital illiteracy, and poor internet connectivity remain key barriers to wider adoption. Additionally, N and Subbulakshmi (2021) and Kumar and Menon (2020) note that lack of incentives, discounts, and limited digital knowledge also discourage some consumers from using UPI.
2)“Aadhaar Enabled Payment System (Ape’s) and Its Role in Expanding Banking Access.”
Saha (2020) and NPCI (Ape’s framework) explain that the Aadhaar Enabled Payment System (Ape’s) allows customers to perform basic banking transactions through Micro-ATMs with the help of Banking Correspondents (BCs). In this system, customers authenticate transactions using their Aadhaar number and biometric verification, making it useful for people who do not have smartphones or easy access to digital banking services. Ape’s provides convenient access to banking services in rural and remote areas and enables customers to conduct transactions even without carrying debit cards, as long as their Aadhaar is linked to their bank account. The system currently supports several services such as balance enquiry, cash withdrawal, cash deposit, fund transfer, mini statement generation, and merchant payments.
Data collection:
This study was collected through a structured questionnaire designed using the Likert scale method. The questionnaire consisted of five statements related to the problem of UPI payment failures. Each statement had five response options: Strongly Agree, Agree, Neutral, Disagree, and Strongly Disagree. The survey was created using a Google Form to make it easy for participants to respond. A total of 100 respondents participated in the survey. The questionnaire link was shared with students, colleagues, and other individuals through online platforms and personal contacts. Respondents were asked to carefully read each statement and select the option that best represented their opinion. The purpose of using the Likert scale was to measure the level of agreement or disagreement among participants regarding the issue. After collecting all responses, the data was automatically recorded in a Google Forms spreadsheet. The collected data was then downloaded into Microsoft Excel for further analysis. This process helped in organizing the responses systematically and preparing them for statistical analysis such as mean, standard deviation, standard error, and t-test. The question are following:
Q1) My UPI payment failed but money was deducted.
Q2) UPI apps sometimes fail during transactions.
Q3) Refunds for failed UPI payments are slow.
Q4) Failed UPI payments cause problems in urgent situations.
Q5) Frequent UPI failures reduce my trust in payment apps.
Data Analysis
Q1 mean 2.83, standard deviations 1.21, standard error 0.12, T stat -1.40, Result Accepted Negatively
Q2 mean 3.5, standard deviations 1.11, standard error 0.11, T stat 4.50, Result Accepted positively
Q3 mean 3.2, standard deviations 1.01, standard error 0.10, T stat 1.98, Result Accepted positively
Q4 mean 3.59, standard deviations 1.15, standard error 0.12, T stat 5.13, Result Accepted positively
Q5 mean 3.31, standard deviations 1.13, standard error 0.11, T stat 2.74, Result Accepted positively
Conclusion:
This study shows that UPI payment systems are widely used because they are fast and convenient. However, many users still experience problems such as failed transactions and money being deducted from their bank accounts. These issues are often caused by network errors or server problems in apps like Google Pay, PhonePe, and Paytm. Another common problem is the delay in the refund process after a failed payment. Such situations create inconvenience for users, especially during urgent transactions. These problems can reduce user trust in the UPI system managed by the National Payments Corporation of India. Therefore, improving system reliability and speeding up the refund process can help increase user trust and satisfaction.
Reference
Banerjee, S., et al. (2021). Study of consumer behaviour towards digital payment: An empirical study with reference to Kolkata. International Journal of Engineering Applied Sciences and Technology, 6(1), 159–167.
NPCI, et al. (2020). Aadhaar Enabled Payment System (Ape’s) framework and procedural guidelines. National Payments Corporation of India.