Impact of Digital Payment Adoption on Consumer Behavior in Udupi Town

This study investigates the impact of digital payment adoption on consumer behavior in Udupi town,aiming to understand the relationship between the use of digital payment methods and changes inconsumer spending habits. The research also examines the factors influencing consumer preferences fordigital payments over traditional cash transactions.The main objectives of this research are to analyze the relationship between the adoption of digitalpayment methods and changes in consumer spending behavior, to identify the factors influencingconsumer preferences for digital payments over traditional cash-based transactions, to examine thepotential advantages and disadvantages of digital payments on personal financial management, and toexplore the role of financial literacy and technological awareness in influencing consumer attitudestowards digital payments.The methodology employed involves a combination of quantitative data analysis through surveys andqualitative insights gathered from consumer interviews. Hypothesis testing was conducted using the Chi-Square test to determine the significance of relationships and differences observed. Key findings indicatea significant relationship between the adoption of digital payment methods and changes in consumerspending behavior, with notable differences in the factors influencing preferences for digital versus cashtransactions. Additionally, the study reveals that digital payment adoption is associated with an increasein impulsive purchases due to the convenience and speed of transactions.