The Impact of Mobile Payment Adoption on Consumer Spending Habits

The Impact of Mobile Payment Adoption on Consumer Spending Habits

Archit Vishwakarma

23GSOB2010849

MASTER OF BUSINESS ADMINISTRATION

Executive Summary

My project's objective is to look into how customers behave when using digital payment options. To bolster the case for e-payments, this study looks at the current inefficiencies in government payment systems and estimates the potential strategic and financial benefits of switching to electronic government payment flows. Since digital payment methods are more widely used and effective, impoverished rural residents are probably going to engage more. This will also help the central government achieve its long-standing goal of reducing poverty and hunger through its food subsidy, housing, and welfare programs.
As a result of new business models and technological improvements, they now have a powerful tool in the shape of digital payments, also referred to as electronic payments or "e-payment" systems. Thanks to digital payments, every poor household in India—roughly 80 to 100 million—may have unparalleled access to safe and useful aid directly from the government, bypassing intermediaries. A digital payment infrastructure enables further expansion into rural India, where traditional payment methods remain inadequate in terms of convenience, accessibility, and reliability.
Implementing digital payment systems has both direct and indirect benefits, such as improved government service delivery, decreased corruption, potential improvements in government service consumption, and a 15%–20% boost in low-income households' per capita income. This degree of connectivity is driving the move away from cash payments made through digital channels, whether from dematerialized cards kept in digital wallets or the cloud or from new digital payment systems.