The evolution of digital technologies has significantly transformed the financial services sector, particularly in the domain of payment systems. Digital payments have emerged as an efficient, secure, and convenient alternative to traditional cash-based transactions. This study aims to examine customer preferences towards various digital payment methods, including Unified Payments Interface (UPI), mobile wallets, debit/credit cards, and internet banking.

The research further investigates the key factors influencing adoption, such as convenience, security, ease of use, and incentives. The study is based on primary data collected from 150 respondents using a structured questionnaire, supplemented by secondary data from academic journals, government reports, and institutional publications. Analytical tools such as percentage analysis and graphical representation have been employed for data interpretation.

The findings indicate that UPI is the most preferred digital payment method due to its simplicity, speed, and accessibility. Convenience emerges as the most significant factor influencing adoption, followed by security and ease of use. Although a majority of users express satisfaction with digital payment systems, concerns regarding cybersecurity and technical issues persist. The study concludes that digital payments are increasingly becoming an integral component of financial transactions and are expected to witness sustained growth with improvements in infrastructure and digital literacy.

Keywords: Digital Payment, UPI, Customer Preference, Financial Technology, Cashless Economy