Transforming to Transactions: How Digital Payments Shape Consumer Behaviour

The study objective is to examine the impact of digital payment on consumer behaviour within the service sector. It examines how technology, user behaviour and economic dimension influence consumer behaviour and engagement with digital payment system. Data were collected through surveys administered to employees across diverse service industries, including education, retail, and hospitality, who regularly interact with digital payment transactions. Regression analysis revealed that all three dimensions significantly affect consumer behavior, with economic factors exerting the strongest negative influence, followed by technological limitations and user behavior considerations. The findings indicate that economic constraints such as perceived costs and lack of incentives are primary barriers to widespread adoption, while technological issues and user-related factors also contribute meaningfully to shaping consumer perceptions and usage patterns. The study underscores the need for targeted strategies to address economic and technological barriers and to foster positive attitudes toward digital payments. These insights can inform policymakers, service providers, and technology developers seeking to promote a more cashless, efficient, and consumer-friendly payment ecosystem.