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The Impact of Digital Payment Platforms on Spending Habits

Shreya Jakati

PGDM23042 Student Dayananda Sagar Business School, Kumaraswamy Layout, Bengaluru,

560111, shreya@dsbs.edu.in

Yeshwanth T N

PGDM23059 Student Dayananda Sagar Business School, Kumaraswamy Layout, Bengaluru,

560111, yeshwanth5206@gmail.com

Dr. Parul Tandan

Associate Professor Dayananda Sagar Business School, Kumaraswamy Layout, Bengaluru,

560111, parul@dsbs.edu.in

Abstract

This study explores the impact of digital payment platforms, such as UPI, mobile wallets, and contactless payments, on consumer spending habits in India. Digital payments have significantly influenced consumer behaviour by offering unparalleled convenience, speed, and financial tracking features. While these systems promote financial accessibility and inclusion, they also encourage higher impulse purchases and overspending due to the reduced tangibility of digital transactions. The research incorporates quantitative methods, analysing responses from 53 participants, to examine how factors like cashback offers, rewards, and ease of use shape financial habits. The findings reveal both positive outcomes, such as enhanced financial tracking, and challenges, including security concerns and the potential for overspending. Recommendations are proposed for consumers, businesses, financial institutions, and policymakers to foster responsible use of digital payment systems while leveraging their advantages.

Keywords: Digital payments, Consumer spending, UPI (Unified Payments Interface), Financial behaviour, Impulse buying, Cashback and rewards,  Mobile wallets