A Study on the Impact of Digital Payments on Household Consumption Level: Evidence from Microdata in CHFS

Amid the continuous expansion of digital payment systems, this paper analyzes the impact of digital payments on household consumption based on data from the 2019 China Household Finance Survey. The study reveals the following insights: (1) Digital payments play a pivotal role in stimulating household consumption. (2) Particularly, digital payments have a pronounced influence on the hedonic aspects of household expenditure. (3) Viewing digital payments through the prism of consumer behavior theory, their efficacy primarily stems from mechanisms such as mental accounting and present bias. These conclusions contribute to a nuanced comprehension of Chinese household consumption patterns, offering valuable considerations for unleashing consumption potential, facilitating economic dual circulation, and fostering high-quality development.