Role of Government Policies in Promoting Digital Payments during COVID-19
DOI:
https://doi.org/10.48047/v9m5ns23Keywords:
COVID-19, digital payments, government policies, financial inclusion, regulatory reforms, mobile payments, UPI, financial technology.Abstract
The COVID-19 pandemic has had a profound and transformative impact on global economies, public health systems, and day-to-day societal functions. One of the most significant shifts during this period has been the acceleration of digital payments, as both individuals and businesses sought contactless methods to complete transactions in an effort to minimize the spread of the virus. As traditional forms of payment, particularly cash, posed challenges due to the risks of surface contamination and the need for physical proximity, governments worldwide quickly recognized the critical role of digital payment systems in maintaining economic activity while adhering to health and safety protocols. This paper explores the multifaceted role of government policies in facilitating the widespread adoption of digital payment methods during the COVID-19 crisis. The study examines key policy initiatives implemented across various countries, such as regulatory reforms, subsidies, financial inclusion strategies, and public education campaigns, and evaluates their effectiveness in encouraging the use of digital payment systems. The paper also investigates the broader socio-economic impacts of these policies, particularly in fostering financial inclusion and enhancing the resilience of the digital economy. Through a comprehensive review of academic literature, government reports, and international case studies, this research provides valuable insights into how government action played a pivotal role in shaping the future of digital payments during the pandemic and offers recommendations for continuing these efforts beyond the crisis. By analyzing the successes and challenges of government policies in promoting digital payments, the paper highlights the essential need for coordinated efforts in policy design, technological infrastructure, and public engagement to ensure a seamless transition to a cashless society, particularly in the post-pandemic world.
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