A Study On The Role Of India’s Digital Payment Systems In Shaping Consumer Purchase Decisions

Abstract

The study examines the role of India’s digital payment systems in shaping consumer purchase decisions across demographic segments. The rapid adoption of platforms such as UPI, mobile wallets, and card-based payments has transformed retail behaviour by reducing transaction friction, offering personalised incentives, and expanding financial accessibility. Using structured questionnaires and responses from 200 consumers, the study identifies the key factors influencing digital payment adoption, including convenience, cash back and promotional benefits, spending flexibility, personalisation, and security perceptions. Kendall’s Coefficient of Concordance indicates a statistically significant but moderate level of agreement among respondents regarding these influencing factors. The cross-tabulation and Chi-Square test further reveal that the level of behavioural impact varies significantly by age, with younger consumers reporting a lower influence and middle-aged and older consumers displaying stronger responsiveness to digital payment features. Overall, the findings suggest that digital payment systems have evolved beyond a transactional mechanism to a behavioural catalyst that increasingly shapes purchasing frequency, merchant choice, and spending intensity.