The rapid growth of digital payment systems in India has transformed the financial ecosystem and significantly changed customer transaction behavior. This research paper examines the impact of service quality, trust, and perceived risk on customer satisfaction in India’s digital payment industry. The study is based on primary data collected from 480 respondents through a structured questionnaire using convenience sampling. Statistical tools such as percentage analysis, ranking analysis, chi-square test, correlation analysis, and regression analysis were applied using SPSS and MS Excel.

The findings reveal that young users aged 18–25 are the dominant users of digital payment applications. Google Pay, PhonePe, and Paytm are the most preferred platforms among respondents. Service quality and trust show a strong positive relationship with customer satisfaction, while perceived risk demonstrates a weak and statistically insignificant impact in regression analysis. Trust emerged as the strongest predictor of customer satisfaction. Privacy risk and financial risk remain major concerns among users, especially regarding fraud, refund delays, and data misuse.

The study concludes that improving service quality, strengthening security systems, enhancing transparency, and reducing technical errors are essential for increasing customer satisfaction and long-term adoption of digital payment systems in India.

Keywords: Digital Payments, UPI, Service Quality, Trust, Perceived Risk, Customer Satisfaction, FinTech, India