Author(s): Priti and Anurika Vaish
This study examines the widening digital divide in India’s payment ecosystem by analysing transaction volume and value growth in urban and rural regions from 2021–2024. Using secondary data from government and financial reports, two datasets—national aggregates and rural–urban segmentation—were assessed across transaction volume (lakh), value (crore), and year-on-year growth rates. Analysis involved descriptive statistics, gap measurement, and trend comparison, supported by visual tools such as bar charts, line graphs, and dual-axis charts. Findings show a pronounced and accelerating disparity: in 2024, urban transaction volume was nearly 20 times higher than rural levels, with growth rates of 66.34% and 9.78%, respectively. A key shift occurred in 2023, when rural transaction value rose by 21.04% while urban value fell by –11.20%, reflecting distinct adoption paths—urban users favouring high-frequency, low-value micro-payments, and rural users engaging in fewer, high-value transactions tied to subsidies and agriculture. These results highlight the limits of uniform digital finance policies and the need for region-specific, trust-based, and infrastructure-sensitive interventions. The study provides empirical evidence to guide inclusive digital strategies and address the structural and behavioural barriers to equitable adoption