From Cash to Click: An Empirical Study on the Impact of UPI and Rewards on Consumer Behaviour

The present study aimed to understand the impact of UPI usage and reward programs on consumer spending behaviour in India. The results reveal that UPI has penetrated deeply into day-to-day financial activities, especially the young and digitally active consumers. Above all, the research shows that the rewards program of UPI platforms significantly affects how much consumers spend. As per results, capabilities of reward programs are more direct and stronger in influencing spending behaviour than the usage of various UPI apps in spurring spending on reward features. This means that consumers are not just attracted to UPI because of convenience and speed, but because of incentives that come with going digital. More purchases may be made as a result of the boost that impulse or unplanned buying may get from these incentives. To sum up, the research finds that both UPI and reward systems together play an important role in influencing consumer behaviour in India’s digital payment ecosystem. The shift from cash to app-based transactions changes a lot of things. It does not only deal with the payment method. Rather, it also shifts spending habits of people. Similarly, it also affects the consumers’ decisions and financial behaviour. A significant finding of the research is that the use of multiple UPI applications has an important influence on consumers’ participation in rewards. People who work on numerous platforms are more likely to interact with cashback offers, discounts and promotional offers. This suggests that consumers are increasingly being strategic in using digital payment platforms, picking apps not only for convenience, but also for the benefits they give. To this end, UPI apps are competing not just as transaction apps but as behaviour shaping apps – that determine choice through reward.

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