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VOL. 11, ISSUE 12 (2025)
The rise of digital payments and its impact on retail consumer spend in India
Authors
Manju Bala
Abstract
In the past decade, India has seen an
unparalleled growth in digital payments, thanks for the most part to the
Unified Payments Interface (UPI), QR-triggered merchant payments and mobile
wallets. The objective of this paper is to investigate the effect of
proliferation of these digital payment formats on retail consumer spending in
India. Based on the secondary data collected from NPCI, RBI, NSO CMIE and
industry listed between 2014 and 2024, the paper utilises descriptive,
correlation analysis and regression growth model to assess the linkage between
digital payment adoption & consumption trends. Results show that consumer
retail expenditure and UPI+QR payments appear to have the most impact, at least
in case of urban/ semi-urban consumers, vis-a-vis wallets which have not only
constantly lost their relative importance but also indicate the preference of
Indian mobile-phone-based shoppers who are moving toward real time one click
payment modes. This research has theoretical implications because it combines
models of Technology Acceptance, Network Externality, and Behavioural Economics
to develop a conceptual framework that ties payment adoption with spending
behavior. Policy measures are recommended for infrastructure, inclusive
adoption and secure and modern digital payments. There are implications for
regulators, policy makers and retail businesses seeking to leverage digital
payment expansion to drive consumption and formalize the retail market.
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Pages:35-37
How to cite this article:
Manju Bala "The rise of digital payments and its impact on retail consumer spend in India". International Journal of Commerce and Management Research, Vol 11, Issue 12, 2025, Pages 35-37
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