Digital Payments and Consumer Buying Behavior in India: An Empirical Study
Main Article Content
Abstract
Digital payment systems have emerged as a key driver of transformation in India’s financial and commercial environment, significantly influencing consumer buying behavior. This empirical study examines the relationship between digital payment adoption, usage patterns, and purchasing decisions among consumers. Primary data was collected from a sample of 400 respondents using a structured questionnaire based on a Likert scale. The study analyzes how digital payment methods such as UPI, mobile wallets, debit and credit cards, and internet banking affect consumer spending habits, transaction frequency, and impulse buying tendencies. The findings indicate that the convenience, speed, and accessibility of digital payments encourage higher transaction frequency and increased expenditure, while promotional incentives such as cashback and discounts further stimulate consumer engagement. Additionally, factors such as perceived ease of use, trust, and security significantly influence adoption and usage behavior. However, concerns related to data privacy, cybersecurity risks, and digital literacy continue to impact user confidence. The results highlight that digital payment systems not only facilitate seamless transactions but also actively shape consumer decision-making processes in India. The study concludes that strengthening digital infrastructure, enhancing security measures, and promoting financial awareness are essential to ensure sustainable adoption and to maximize the benefits of digital payments in influencing consumer behavior.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
References
Joshi, Y., & Rahman, Z. (2017). Investigating the determinants of consumers’ sustainable purchase behaviour. Sustainable Production and consumption, 10, 110-120.
Kanwal, J., & Singh, J. (2025). Impact Of Digital Payment Systems On Consumer Spending Habits. European Economics Letters, 15.
Kumar, A., Adlakaha, A., & Mukherjee, K. (2018). The effect of perceived security and grievance redressal on continuance intention to use M-wallets in a developing country. International Journal of Bank Marketing, 36(7), 1170-1189.
Kumar, H., & Sofat, R. (2022). Digital payment and consumer buying behaviour-an empirical study on Uttarakhand, India. International Journal of Electronic Banking, 3(4), 337-357.
Kumar, V., & Ayodeji, O. G. (2021). E-retail factors for customer activation and retention: An empirical study from Indian e-commerce customers. Journal of Retailing and Consumer Services, 59, 102399.
Madan, K., & Yadav, R. (2016). Behavioural intention to adopt mobile wallet: a developing country perspective. Journal of Indian Business Research, 8(3), 227-244.
Mary, L., & Antony, A. (2022). Digital payment systems (DPS) and its influence on impulsive buying behaviour of consumers. International Journal of Health Sciences, (II), 2095-2102.
Moghavvemi, S., Mei, T. X., Phoong, S. W., & Phoong, S. Y. (2021). Drivers and barriers of mobile payment adoption: Malaysian merchants' perspective. Journal of Retailing and Consumer Services, 59, 102364.
Naeem, M., Hameed, M., & Taha, M. S. (2020, February). A study of electronic payment system. In IOP Conference Series: Materials Science and Engineering (Vol. 767, No. 1, p. 012008). IOP Publishing.
Nasution, L. N., Rangkuty, D. M., & Putra, S. M. (2024). The Digital Payment System: How Does It Impact Indonesia's Poverty?. ABAC Journal, 44(3), 228.
Neger, M., & Uddin, B. (2020). Factors affecting consumers’ internet shopping behavior during the COVID-19 pandemic: Evidence from Bangladesh. Chinese Business Review, 19(3), 91-104.
Paramita, E. D., & Cahyadi, E. R. (2024). The Determinants Of Behavioral Intention And Use Behavior Of Qris As Digital Payment Method Using Extended Utaut Model. Indonesian Journal of Business & Entrepreunership, 10(1).
PHUONG, N. N. D., LUAN, L. T., Van DONG, V., & KHANH, N. L. N. (2020). Examining customers’ continuance intentions towards e-wallet usage: The emergence of mobile payment acceptance in Vietnam. The Journal of Asian Finance, Economics and Business, 7(9), 505-516.
Prashar, S., Sai Vijay, T., & Parsad, C. (2017). Effects of online shopping values and website cues on purchase behaviour: A study using S–O–R framework. Vikalpa, 42(1), 1-18.
Purohit, S., Arora, R., & Paul, J. (2022). The bright side of online consumer behavior: Continuance intention for mobile payments. Journal of Consumer Behaviour, 21(3), 523-542.
Purwanto, E., & Loisa, J. (2020). The intention and use behaviour of the mobile banking system in Indonesia: UTAUT Model. Technology Reports of Kansai University, 62(6), 2757-2767.
Putri, Y. E., Wiryono, S. K., Nainggolan, Y. A., & Cahyono, T. D. (2019). Method of payment adoption in Indonesia e-commerce. The Asian Journal of Technology Management, 12(2), 94-102.