Analysing the market for digital payments in India using the predator-prey mode

Technology has revolutionized the way transactions are carried out in economies across world. India too witnessed introduction of numerous modes electronic payment past couple decades, including e-banking services, National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS) and most recently Unified Payments Interface (UPI). While other mechanisms have a gradual consistent increase volume transactions, UPI an exponential usage is almost on par with pre-existing technologies transactions. This study aims to employ modified Lotka-Volterra (LV) equations (also known as Predator-Prey Model) competition among different mechanisms. The market share each platform estimated using LV combined estimates total size obtained Auto-Regressive Integrated Moving Average (ARIMA) technique. result model predicts that will eventually overtake conventional digital mechanism terms well volume. Thus, indicates scenario where both would coexist being dominant (or more preferred) mode payment.