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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM67792
Volume:
10 |
10 |
Oct 2026
Pages:
1-14
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Department of Bachelor of Business Administration
K.L. University
Department of Bachelor of Business Administration
K.L. University
With the popularity of the Unified Payments Interface (UPI) has come a slew of cashback offers, reward points, discount coupons, scratch cards and referral rewards. This research investigates how consumers react to these incentives in terms of their spending behaviour. Primary data was gathered from the users of UPI by using a structured questionnaire with profile variables and statements on the Likert scale. Chi-square test of independence, one-way ANOVA with Tukey post hoc comparison and simple and multiple linear regression were used to analyse the data. The results indicate that cashback and reward features are positively and strongly related to spending behaviour, buying frequency and unplanned or impulsive purchases. Discounts/coupons, cashback attractiveness and the perception of cashback as a savings were significant factors in predicting spending behaviour in addition to the other individual features, with cashback attractiveness and discounts/coupons being the bigger of their impact, only cashback attractiveness remaining significant after direct control of the other individual features, while reward points and scratch cards were not significant after direct control of the other individual features. There were no significant differences among respondents based on age, gender, income or occupation, but there were significant differences on education and UPI usage frequency. Overall, the study finds that UPI incentives are significant behavioural factors to motivate consumption and recommends a prudent approach towards using such incentives by consumers, payment platforms, and policy makers.
KEYWORDS
The aim of this study was to investigate the effect of UPI cashback and rewards on consumer spending behaviour. The Chi-Square tests and ANOVA and regression analyses combined indicate that cashback and rewards are significantly and strongly related to increased spending, increased frequency of purchase and unplanned/impulse buying. There are some attributes that account for most of the spending, such as the loyalty/referral rewards, discounts, coupons, and cashback attractiveness, while the differences in demographic spending are mostly about education and the frequency of using UPI. This means that UPI incentives can be considered a very effective behavioural nudge that would benefit platforms and merchants as well as create real value for consumers, but would also have the downside of potentially resulting in excess spending and/or lesser saving. Responsible offer design is crucial for offer providers and informed and disciplined usage of rewards is crucial for consumers.
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Publication Date
10/10/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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The authors declare no conflict of interest related to this research work.
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