RELATIONSHIP BETWEEN DIGITAL PAYMENT USAGE AND SPENDING BEHAVIOUR AMONG GEN Z -CONSUMERS PERSPECTIVE

Abstract: This study examines the relationship between digital payment usage and spending behaviour among Generation Z consumers in Coimbatore. Focusing on payment methods such as UPI, mobile wallets, debit and credit cards, and Buy Now Pay Later (BNPL) services, the research investigates how digital transactions influence frequency of spending, impulsive buying tendencies, and financial awareness. Data were collected from 100 respondents using a structured questionnaire and analyzed through percentage analysis, Chi-square test, ANOVA, and regression analysis. The findings reveal that transaction speed, discount influence, and security concerns significantly shape spending behaviour, while income level is closely associated with changes in expenditure patterns post-adoption. The study concludes with actionable recommendations for digital payment service providers, financial institutions, and policymakers to promote responsible and informed usage among young consumers.

Keywords: Digital Payments, Gen Z, Spending Behaviour, UPI, Financial Awareness, Impulsive Buying, Cashless Economy.