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@article{193273,
        author = {Arvind and Dr. Ratan Lal},
        title = {Effect of UPI Integration on Consumer Spending Behaviour in Retail: A Comparative Study of Cash and Digital Payments},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {9},
        pages = {4522-4528},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=193273},
        abstract = {The rapid expansion of the Unified Payments Interface (UPI) has transformed India’s retail payment ecosystem by accelerating the shift from cash-based transactions to digital payment systems. Introduced by the National Payments Corporation of India (NPCI) as a real-time, interoperable mobile payment platform, UPI has witnessed exponential growth in transaction volumes since 2017, reaching multi-billion monthly transactions by 2023–24. This study examines whether UPI integration has influenced consumer spending behaviour differently compared to traditional cash payments. Drawing on behavioural economics theories such as the “pain of paying” and mental accounting, the research explores how reduced transactional friction, abstraction of monetary exchange, and frictionless payment processes may alter spending frequency and expenditure levels. Using a quantitative, explanatory design based entirely on secondary data, the study analyses macro-level indicators including UPI transaction growth, ATM withdrawal trends, currency in circulation, and retail activity during the period 2016–17 to 2023–24. The comparative analysis reveals that UPI transaction growth has consistently outpaced ATM withdrawal growth, indicating a structural substitution effect in retail payments.
The findings suggest that digital payments reduce the psychological salience of monetary outflow, potentially lowering spending restraint and increasing micro-transaction frequency, particularly in routine consumption activities. At the same time, digital systems enhance financial transparency by generating detailed transaction records, thereby strengthening retrospective budgeting and financial monitoring. This dual behavioural dynamic reflects both increased short-term consumption velocity and improved long-term expenditure awareness. The study further identifies digital financial literacy and demographic characteristics as moderating factors influencing the extent of behavioural change. Overall, the research concludes that UPI integration has significantly reshaped consumer payment preferences and retail spending behaviour in India, highlighting important implications for retail strategy, financial governance, and public policy in the context of an evolving digital economy.},
        keywords = {UPI, digital payments, retail sector, consumer behaviour, cash versus digital payments, behavioural economics, India},
        month = {February},
        }