A Study on How Digital Payment Systems Affect...

A Study on How Digital Payment Systems Affects Consumer Spending Habits

Author Name : Tamilarasi K, Dr. Dhivya Sathish

ABSTRACT Digital payment methods, including UPI, mobile wallets, credit/debit cards, and Buy Now, Pay Later (BNPL) schemes and etc, have revolutionized the manner in which people spend money. This research looks at how digital payments affect spending behavior. As digital payments are quick, convenient, and easy, individuals end up spending more and making impulse purchases than they would with cash. Cashbacks, discounts, and rewards further prompt even greater spending. The research also examines the way various age groups and geographies embrace digital payments, with young individuals and urban consumers using them more. But digital payments also have threats such as overspending, credit reliance, and fraud. Through surveys, this study discovers that most users of digital payments lose control over their expenditure in comparison to cash users. Though electronic payments have numerous advantages, they need to be used judiciously. The research recommends financial literacy campaigns, improved budgeting facilities, and enhanced security features to enable consumers to control their expenditure effectively