Fintech Revolution and Financial Inclusion: A Study of UPI, AEPS and Digital Lending In India

Abstract The rapid expansion of financial technology (FinTech) has fundamentally altered the structure of financial intermediation in India. Platforms such as the Unified Payments Interface (UPI), Aadhaar Enabled Payment System (AEPS), and digital lending applications have transformed the manner in which individuals access, transact, and obtain credit. Despite substantial growth in transaction volumes, empirical evidence on their integrated impact on financial inclusion remains limited. The present study aims to examine the extent to which UPI, AEPS, and digital lending contribute to improving financial access, usage, and credit availability among individuals. The study is based on primary data collected through a structured questionnaire administered to 180 respondents across urban and semi-urban regions. A stratified sampling technique was adopted to ensure representation of diverse income and occupational groups. The collected data were analyzed using descriptive statistics, correlation analysis, and multiple regression techniques with the help of SPSS software. The findings reveal a significant positive relationship between digital payment adoption and financial inclusion indicators such as frequency of transactions, formal account usage, and access to small-value credit. UPI emerged as the most widely used platform for daily transactions, while AEPS played a crucial role in facilitating last-mile banking access. Digital lending applications were found to improve short-term credit accessibility, particularly for individuals with limited traditional credit history. However, concerns related to digital literacy, data privacy, and repayment awareness were also identified. The study concludes that FinTech platforms function as critical enablers of technology-driven financial inclusion in India. Strengthening digital awareness and regulatory oversight can further enhance their inclusive impact.