UNDERSTANDING THE SHIFT TO DIGITAL PAYMENTS AND ITS IMPACT ON CONSUMER PREFERENCES: THE ROLE OF FINTECH IN SHAPING THE FUTURE OF PAYMENTS

The evolution of digital payments has significantly impacted consumer behavior and business operations. This study aimed to explore the role of fintech innovations, such as mobile wallets and contactless payments, in shaping consumer habits. Using a mixed-methods approach, the research analyzed data from 500 consumers and 50 businesses, showing that mobile payment transactions rose by 47% from $4.7 trillion in 2021 to $6.9 trillion in 2023. Results indicated that 73% of consumers are more likely to make impulse purchases with digital payments, though 68% still cite security as their top concern. The study concludes that while digital payments offer convenience and drive sales, enhancing security remains crucial for widespread adoption.