A Study of the Impact of Digital Payments on Consumer Buying Behaviour in India

Author(s): Bhuvan Kumar Mallick

Abstract:

The rapid proliferation of digital payment systems, particularly the Unified Payments Interface (UPI), has fundamentally transformed consumer buying behaviour in India. This paper examines the impact of digital payments on spending patterns, purchase frequency, impulse buying and financial management habits. Drawing on secondary data, literature review and empirical insights from recent studies, it highlights how convenience, accessibility and government initiatives like Digital India and demonetization have accelerated adoption. Key findings indicate increased transaction volumes, higher spending among users and shifts toward impulse and frequent small-value purchases, alongside persistent challenges such as security concerns and digital divides. The study underscores UPI's dominance, with over 23 billion transactions worth nearly ₹30 lakh crore in May 2026 alone. Policy recommendations focus on enhancing security, financial literacy, and inclusive growth.

keywords:
Digital Payments, Consumer Buying Behaviour, UPI, Financial Inclusion, Impulse Buying, India, FinTech, Security Concerns, Spending Patterns.

Pages: 93-95     |    13 View     |    1 Download