Impact of Digital Payment on Students Spending
Authors: Omkar Gawde, Mayur Dubule & Sahil Gaware
Introduction:
In recent years, digital payment systems have revolutionized financial transactions, offering convenience, speed, and security. Students, being early adopters of technology, have embraced digital payments through mobile wallets, UPI, and contactless cards. This shift has significantly influenced their spending behavior, leading to increased financial independence and impulsive purchasing patterns.
The ease of transactions, cashback offers, and seamless integration with e-commerce and food delivery platforms have made digital payments a preferred choice among students. However, this convenience also raises concerns about overspending, reduced financial discipline, and lack of awareness about budgeting. Understanding the impact of digital payments on students’ financial habits is crucial for promoting responsible spending and financial literacy.
Objective:
To analyse the impact of digital payments on students’ spending behaviour, financial discipline.
Literature Review:
The Influence of Digital Payments on Consumer Behavior
Chamlongrath, et al (2021) stated previous studies suggest that digital payment methods significantly impact consumer spending habits. Research by Smith et al. (2022) highlights that cashless transactions reduce the psychological resistance to spending, leading to impulsive purchasing behavior. Additionally, digital wallets and credit cards provide convenience, but they may also encourage financial mismanagement, especially among young consumers
Influence of Digital Payments and Financial Pressure on Student Spending
Intan & Nugroho (2023) emphasized digital payments and financial pressures significantly impact student spending behavior. The ease of digital transactions often leads to increased consumption, while financial stressors contribute to impulsive purchases. However, research is often limited to specific years and disciplines, restricting broader insights. Expanding sample sizes, including diverse academic backgrounds, and refining measurement tools can provide a more comprehensive understanding. Promoting financial awareness can also help students manage spending more effectively.
Data Collection:
For the above problem we framed 5 questions on the Likert Scale and we approached 100 students of KBS with google form. With the answers strongly agree, agree, neutral, disagree and strongly disagree. They were coded as 5,4,3,2and 1. So that hypothesised mean is 3. Also, for each question mean, standard deviation, standard error and z – scores were calculated. The questions were as follows:
1. Digital payments help students track spending.
2. UPI and wallets increase spending on non-essentials.
3. Refund delays cause financial issues for students.
4. Cashless payments feel more convenient than cash.
5. Online payment risks concern students.
Data Analysis:
|
Column1 |
Q1 |
Q2 |
Q3 |
Q4 |
Q5 |
|
Mean |
3.37 |
3.56 |
3.4 |
3.41 |
3.42 |
|
SD |
1.34 |
1.42 |
1.31 |
1.33 |
1.33 |
|
SE |
0.13 |
0.14 |
0.13 |
0.13 |
0.13 |
|
Z |
2.75 |
3.94 |
3.06 |
3.08 |
3.17 |
|
Result |
Positive |
Positive |
Positive |
Positive |
Positive |
Conclusion:
References:
Chamlongrath, Wichitra, and Chark Tingsabhat. “The Payment Behavior and Electronic Payments Usage of University Students.” (2021).
Intan Aprilia, & Nugroho, D. S. (2023). The Influence of Digital Payments and Financial Stressors on Consumptive Behavior of MNC University Students. The Es Accounting And Finance, 1(03), 143–149. https://doi.org/10.58812/esaf.v1i03.102