Adoption of Digital Payment Systems and its Influence on Consumer Behaviour in India

Abstract

The economic life of India is undergoing significant changes with the rapid adoption of digital payment systems. This study explores the complex relationship between this phenomenon and its subsequent impact on consumer behavior. The Digital India programme, technological advances and a young, tech-savvy population have all contributed to the growth of digital payments in India. This study examines the key factors influencing the adoption of digital payment methods with a focus on perceived ease of use. , security considerations and government incentives. It examines how these factors and demographics influence consumer choices about mobile wallets, UPIs, online banking and debit/credit cards. The study further analyzes the impact of digital payments on consumer purchasing behavior in India. We look at potential changes in online shopping habits, impulse buying trends and consumer tracking. The research explores how the convenience of digital transactions can increase online shopping and potentially impulse buying. On the other hand, it explores how these platforms could promote greater financial transparency by allowing consumers to more effectively control their spending.This mixed methods study uses a quantitative survey and qualitative interviews to gain a comprehensive understanding of this phenomenon. The quantitative study collects information on the use, perceptions and consumption behavior of digital payments from a representative sample of Indian consumers from various demographic groups. In-depth interviews with a smaller group of consumers provide a better understanding of their experiences and how digital payments have affected their shopping habits.The study aims to deepen understanding of the factors influencing the adoption of digital payment systems in India and their shopping habits. . effect on consumer behavior. It reveals the motivations for using digital payments, identifies potential changes in spending patterns, and provides insight into the changing consumer landscape. In addition, this study aims to inform decision-makers, financial institutions and businesses that want to take advantage of the opportunities offered by the digital payment revolution. Keywords Cashless Economy, UPI, Digital Payments, online Banking, Convenience, Security