Impact of Digital Payment Adoption on Consumer Behavior in Udupi Town

This study investigates the impact of digital payment adoption on consumer behavior in Udupi town,
aiming to understand the relationship between the use of digital payment methods and changes in
consumer spending habits. The research also examines the factors influencing consumer preferences for
digital payments over traditional cash transactions.
The main objectives of this research are to analyze the relationship between the adoption of digital
payment methods and changes in consumer spending behavior, to identify the factors influencing
consumer preferences for digital payments over traditional cash-based transactions, to examine the
potential advantages and disadvantages of digital payments on personal financial management, and to
explore the role of financial literacy and technological awareness in influencing consumer attitudes
towards digital payments.
The methodology employed involves a combination of quantitative data analysis through surveys and
qualitative insights gathered from consumer interviews. Hypothesis testing was conducted using the Chi-
Square test to determine the significance of relationships and differences observed. Key findings indicate
a significant relationship between the adoption of digital payment methods and changes in consumer
spending behavior, with notable differences in the factors influencing preferences for digital versus cash
transactions. Additionally, the study reveals that digital payment adoption is associated with an increase
in impulsive purchases due to the convenience and speed of transactions.