CONSUMER SPENDING HABITS AND DIGITAL PAYMENT ADOPTION: A BEHAVIOURAL PERSPECTIVE

DOI: https://doie.org/10.65985/APER.2026641088

Authors:

Diksha Pawar

Keywords:

Digital Payments; Spending Habits; Cashless Economy; Consumer Behaviour; Financial Decision-Making

Abstract:

The rapid growth of digital payment systems has significantly influenced consumer financial behaviour, particularly spending habits. This study aims to examine the impact of factors influencing customers’ spending habits and to analyse the changes in spending habits resulting from the adoption of digital payment systems. The research is based on primary data collected from 400 respondents in the Kumaun region of Uttarakhand through a structured questionnaire, supported by secondary data from relevant sources. Statistical tools such as regression analysis and ANOVA were used to assess the relationship and significance of variables, while graphical methods ensured the validity of assumptions. The findings reveal that digital payment systems have a significant impact on spending habits, with personal and banking factors showing a strong positive influence, whereas security factors are found to be insignificant. The study further indicates that the increasing use of digital payments has led to more frequent and convenient spending. From a behavioural perspective, digital payment methods reduce the visibility of money, lowering the “pain of paying” and increasing the likelihood of impulsive spending. At the same time, they facilitate better saving and investment through features like automatic deductions and seamless transactions, enabling regular investments without the need for physical bank visits.

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