A SURVEY ON IMPLICATIONS OF CASHLESS PAYMENTS ON THE SPENDING PATTERNS OF URBANITES IN THE ERA OF DIGITAL INDIA

https://ijfans.org/issue?volume=Volume%2011&issue=Special%20Issue%203&year=2022 

ABSTRACT: In recent years, credit cards and other payment options like Paytm and Amazon Pay Later were utilized more than cash to buy goods and services. Buying with a credit card or an e-wallet is less uncomfortable and doesn't require instant payment (Journal of Consumer Research). Thus, the benefits of cashless payments are that they save time and don't require lengthy information. There's no need to queue up at an ATM or bring cards everywhere. With the switch to digital, users will have access to financial services 24/7, including holidays. So do digital wallets and UPI. Limitations on cash withdrawals from ATMs forced consumers to embrace digital wallets. Many mobile wallets and payment apps have no service or processing costs. Objective: The Objective of the study is to assess the changing Spending behavior of urbanites using the electronic payments like (E-Wallets, Credit Cards, pay later options) etc., Methodology: data is collected through a structured questionnaire using printed questionnaire and a google form. Correlation and ANOVA has been used to find the relationship between the Income of the individual to mode of payment when shopping with family and friends and Spending more attracted by offers, overspending and increasing debt. Apart from that, income level and mode of payment while shopping with family and friends and Mode of payments for daily transactions. Results: The result of the study shows that, there is a negative correlation exists between Income level to mode of payment while going out for shopping with family and friends [-0.30], Spending more than what you spend attracted by cashback offers [-0.26], and positive correlation growth in debt due to Credit cards, Paytm pay later, Amazon pay later etc., No correlation between Income level to overspending due to usage of credit cards pay later options. Income level to mode of payment and consumption pattern of the individual with family and friends while shopping and mode of payment consumption pattern of the individual for daily transaction are different. Conclusion: The study concludes that, Saving and wealth creation and long-term financial plans of the urbanites are at stake due to digital payments, usage of credit cards and Pay later options. This would lead to like more interest payments for the repayment of debt, growth of fin tech entities and leads to concentration of society’s wealth in few hands. It may lead to huge inequalities in income distribution and the rich become rich and poor become poor in the country. The changing lifestyle of millennials and the financial options for taking loans available through online and mobile apps leading to deaths due to inability to repay the debts in semi urban and urban areas. There is a huge increase in overspending, less saving and huge debt burden to households in the society. Keywords: UPI, Digital Payments, Consumer Behavior, E-Wallets, Credit Cards, Digital Rupee, Correlation, ANOVA