The Disappearing Pain of Paying: A Systematic Literature Review of UPI and Consumer Spending Behavior

This paper examines the relationship between Unified Payments Interface (UPI) and consumer spending behavior through the lens of pain of paying. The study combines a systematic literature review with secondary evidence from official NPCI monthly transaction statistics. Two objectives guide the paper: first, to identify the major factors influencing UPI and digital payment adoption in India; and second, to examine how frictionless digital payment may influence spending frequency, impulse buying, overspending, and financial self-control. The literature consistently shows that UPI adoption in India is driven by convenience, usefulness, trust, security, and ease of use, while the pain-of-paying literature suggests that digital payment systems reduce the visibility and psychological burden of spending. The statistical evidence confirms strong growth in UPI transaction volume and value, demonstrating that UPI is deeply embedded in everyday payment behavior. The paper concludes that UPI has changed not only how consumers pay but also how they may experience spending, and that more India-specific research is required to measure this behavioral effect directly.