Digital Payment Systems: Their Role in Economic Growth and Associated Criminal Activities

Suhaib Ahmed Quraishy; Abdulla

doi:10.69968/ijisem.2026v5i3113-119

Authors

Suhaib Ahmed Quraishy Ph.D. Research scholar, Department of commerce, Mohammad Ali Jauhar University, Rampur, Uttar pradesh, India
Abdulla Ph.D. Research scholar, Faculty of Law, Mohammad Ali Jauhar University, Rampur, Uttar pradesh, India

DOI:

https://doi.org/10.69968/ijisem.2026v5i3113-119

Keywords:

Digital Payment Systems, Unified Payments Interface (UPI), Financial Inclusion, Economic Growth, Digital Payment Fraud

Abstract

Digital payment systems have revolutionized the financial sector, offering secure, efficient, and real-time electronic transactions worldwide. The financial inclusion has been enhanced, business efficiency, e-commerce, and economic growth have been supported with the fast growth of technology like Unified Payments Interface (UPI), mobile wallets, Internet banking, credit and debit cards and QR code based payments. At the same time, the growing reliance on digital financial services has opened up new avenues for financial crimes via cyber means such as phishing, identity theft, QR-code fraud, OTP fraud, money laundering, malware attacks and account takeover. This review aims to analyse the impact of digital payment on economic development and provide an insight into the new security issues surrounding the use of these digital payments. It also examines the contribution that the regulatory framework, security measures, fraud protection systems, consumer understanding and awareness, and institutional cooperation can play in enhancing the security of payments. In conclusion, the review suggests that sustainable digital payment systems need to combine technological innovation, effective regulation, and cybersecurity awareness.

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