Digital payments have become an important part of the Indian financial system and everyday consumer transactions. The rapid adoption of Unified Payments Interface (UPI), mobile banking, cards and other electronic payment channels has changed the way consumers pay, transfer money, monitor transactions and interact with financial services. This study examines the relationship between the expansion of digital payment systems and consumer financial behaviour in India. The paper focuses on payment usage, transaction convenience, transaction frequency, spending visibility and financial awareness. The study is based on secondary data from the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI). The RBI Digital Payments Index increased from 100 in March 2018 to 465.33 in September 2024. NPCI data show that UPI processed 24,508.96 million transactions in August 2026 with a transaction value of ₹29,82,355.95 crore. The study does not claim that aggregate payment growth alone proves a causal change in individual consumer behaviour. It concludes that digital payments can support convenience, transaction transparency and access to formal financial channels, while also creating concerns related to impulsive spending, fraud awareness, privacy and digital literacy.

Priyanshu Kiranrao Bijwe, Dr. Ujjwala Narkhede, "Impact of Digital Payments on Consumer Financial Behaviour" International Journal of Scientific Research and Engineering Development, V9(5): Page(1090-1095) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.