The E-Payment Trajectory during the Pandemic – The Case of India

Abstract

This study empirically investigates how the different e-payment methods performed during the pandemic as an alternative medium to the traditional mode of payment. E-payment methods namely Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT), Aadhaar Enabled Payment System (AEPS), Unified Payments Interface (UPI), and Immediate Payment Service (IMPS) are considered from June 1, 2020, to November 30, 2021, when the global pandemic was at its peak. Secondary daily data are considered in this study collected from the RBI database which was converted into corresponding log natural returns. GARCH (1,1) model was applied as the tool for analysis. It was noted that RTGS, AEPS, and UPI undergo positive volatility whereas NEFT and IMPS undergo negative volatility which enables us to conclude that RTGS, AEPS, and UPI are much more acceptable mediums of payments during the pandemic than the others.