International Journal of Scientific Research and Engineering Development

With the rapid Technology in development of technology, there is a swift transition from cash to a cashless payment system. This study aims to analyse the socio-economic impact of digital payment on consumers, with a focus on spending levels, impulse buying and behavioural changes. The study uses primary data to collect information from 100 respondents through a structured questionnaire method. The statistical tools are used to test the respondent’s opinions, such as simple percentage Analysis and the chi-square test. The result indicates that most of the young adults have high exposure to digital payment systems. The Average score ranged from 2.97 to 3.36, indicating that respondents engage in such digital payment activities sometimes, reflecting a balanced and cautious approach. The chi-square analysis indicates that age has a significant relationship with the overall impact of digital payment. Furthermore, the study observes that digital payment systems enhance convenience, transaction speed, and financial transparency among users. It also supports better expense tracking, which helps consumers monitor their spending patterns effectively. The study concludes that digital payments reduce excessive impulsive purchases, promote spending control, and encourage responsible financial behaviour, thereby contributing positively to personal financial management and the growth of a cashless economy. However, the study emphasises the importance of awareness regarding data security, privacy, and responsible usage to avoid financial fraud and overspending. The findings suggest that with proper financial literacy and self-control, digital payment systems can act as effective tools for managing personal finances. The study concludes that digital payment avoids excessive impulsive purchases and promotes control over one's spending behaviour.

Dr.Geetha R, Ms.Aishwariya J,"Growth of Digital Payments and Its Impact on Customer Spending Habits" International Journal of Scientific Research and Engineering Development, V9(1): Page(1456-1462) Jan-Feb 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.