Impact of digital payment systems on the financial behaviour of youth in Keralam

Abstract

In today's world, digital payment systems are typically used to pay for goods and services, especially by young adults. The rise of digital payment systems has coincided with the increased use of smartphones, internet services, and digitalisation, thus facilitating the use of payment systems such as UPI, mobile wallets, internet banking, and credit/debit card transactions among the youth. The benefits associated with utilising digital payment systems, including ease of use, security, and speed, make them very appealing to young adults. This study aims to investigate how digital payment systems influence the financial behaviour of young adults with regard to their spending, saving, budgeting, and impulse purchasing habits. In addition, the study considers the reasons for adopting digital payment systems, such as convenience, cashback incentives, rewards, and ease of access using both primary and secondary data sources. The findings indicate that UPI is the most widely utilised digital payment system by young people due to its simplicity and ease of use. In general, the growth of digital payment systems has reduced young people’s reliance on cash and has improved the efficiency and speed of their transactions. Furthermore, the ease of making digital payments may promote the propensity of some individuals to spend on impulse. In summary, digital payment systems have significantly influenced the financial behaviour of young people living in the state of Keralam.