Digital Payments and Consumer Spending: An Empirical Study of Payment Mode Effects on Consumption in Jabalpur

The increasing penetration of digital payment modes such as UPI, QR-code payments, mobile wallets, and debit/credit cards has altered consumer spending behaviour in India. This study examines the relationship between payment modes and spending patterns in Jabalpur, focusing on whether digital payments encourage higher discretionary consumption. Primary data were collected from 200 respondents through a structured questionnaire based on a 5-point Likert scale, complemented by secondary data from RBI and NPCI reports. Five dimensions—convenience, trust, security, spending discipline, and impulse buying—were assessed. Hypothesis testing using Chi-square and t-tests revealed that digital payment users spend more frequently and are more prone to impulse purchases than cash-dominant users. The findings highlight behavioural, demographic, and infrastructural determinants of this relationship, with implications for financial literacy and responsible consumption policies.