Impact of Digital Payments on Daily Expenditure: A Study with Special Reference to Gen Z

Kanaklata Rampuriya (Student)

2nd Year Law Student at Amity University Chhattisgarh

Dr. Ram Kumar Sahu (Assistant Professor)

At Amity University Chhattisgarh

ABSTRACT:This study investigates the impact of digital payment systems on the daily expenditure patterns of Gen Z consumers, particularly focusing on their adoption, usage frequency, and the resulting changes in financial behavior. It examines whether the ubiquitous presence of digital payment options fosters increased consumption or, conversely, promotes enhanced financial prudence through integrated budgeting functionalities. Employing a qualitative thematic analysis, this research synthesizes existing literature and empirical studies to delineate the psychological, social, and cultural determinants influencing Gen Z's digital payment adoption and spending habits. Utilizing a phenomenological approach with semi-structured interviews and focus group discussions, the study explores how the intangibility of digital transactions and the "illusion of liquidity" contribute to overspending among Gen Z, alongside investigating various spending triggers and mitigation strategies. Ultimately, the findings will inform strategies for financial literacy education and responsible digital payment platform design tailored to the unique behavioral economics of this demographic.KEYWORDS: Digital Payments, Gen Z, Spending Habits, Financial Behavior, Consumer Psychology.