WThis study investigates the impact of digital payment systems on consumer behavior, financial habits, and economic participation. With the rapid adoption of mobile wallets, UPI, Internet banking, and card-based transactions, cashless payments have fundamentally altered how consumers engage with financial services. The study highlights key benefits including transactional convenience, greater financial inclusion, improved spending transparency, and enhanced security through authentication technologies. Simultaneously, it acknowledges persistent challenges such as cybersecurity threats, insufficient digital literacy among vulnerable populations, and infrastructure limitations in connectivity. findings indicate that digital payment adoption positively influences consumer spending patterns, encourages e-commerce growth, and promotes better financial management. The study concludes that while barriers to adoption remain, continued technological advancement, digital awareness programs, and policy support are essential to maximize the benefits of digital payments for all consumer segments.
Naik et al. (2026) studied this question.