The rapid growth of digital technology has changed the way people make payments. The Unified Payments Interface (UPI) has become one of the most popular digital payment systems because it is fast, easy to use, and convenient. This study focuses on customer perception and satisfaction regarding UPI payments in Kannur District. The study aims to analyse customers' perceptions towards UPI services, identify the factors influencing UPI usage, assess the level of customer satisfaction, and study the problems faced by users while making UPI transactions. The study collected primary data from 60 respondents through a structured questionnaire. The data were then analysed with the help of percentage analysis, weighted average, Chi-square test, independent sample t-test, and correlation analysis.

The findings revealed that most respondents use UPI regularly and prefer it because of its convenience, ease of use, speed, and wide acceptance among merchants. Google Pay was found to be the most preferred UPI application among the respondents. The study revealed that customer perception is positively related to customer satisfaction with UPI payments.  Although users reported certain problems such as network issues and transaction failures, the overall level of satisfaction with UPI services was high. The study concludes that UPI has become an important part of daily financial transactions and contributes significantly to the growth of a digital and cashless economy.

Keywords: Customer perception, Customer satisfaction, UPI payments, Digital payments, Mobile payments, Cashless economy, Digital banking.