Impact of Digital Payment Systems on Consumer Spending and Saving Behavior in India

Abstract

India has witnessed a remarkable shift toward a digitally oriented economy, driven largely by the rapid expansion and acceptance of digital payment modes such as UPI, mobile wallets, and internet banking services. In this context, the present study seeks to examine the influence of these digital payment systems on consumers’ spending and saving behaviour. The study is based on primary data collected from 280 respondents through a structured questionnaire. Further, the analysis is framed using the Technology Acceptance Model (TAM) to understand how perceived ease of use and perceived usefulness shape consumer behavioural responses toward digital payments.
The findings indicate that digital payment platforms provide substantial benefits in terms of convenience, accessibility, efficiency, and financial inclusion. However, the study also reveals that the ease and seamless nature of digital transactions can contribute to impulsive spending behaviour, as such transactions involve comparatively lower psychological barriers and require minimal physical effort. At the same time, the research highlights the need for greater financial literacy and appropriate policy interventions to ensure that the growing adoption of digital payment systems promotes responsible financial practices alongside economic convenience.