UPI Usage and Impulsive Spending Behaviour Among Young Consumers: A Secondary-Research Synthesis

Abstract

The rapid expansion of the Unified Payments Interface (UPI) has changed how young consumers in India pay for everyday goods and services. UPI combines immediacy, low transaction friction, smartphone accessibility and widespread merchant acceptance, potentially altering the psychological experience of spending. This paper examines the relationship between UPI usage and impulsive spending behaviour among young consumers by synthesising empirical research on digital payments, payment transparency, the pain of paying, mobile-payment adoption and impulse buying, alongside current UPI ecosystem statistics. The study adopts a structured secondary-research design and does not fabricate primary survey responses. Evidence indicates that cashless and digitally mediated payments can reduce the salience of monetary outflow and increase spending under particular consumption conditions. Research on mobile payments also shows that convenience, trust, social influence, perceived usefulness and promotional benefits encourage continued use. For young consumers, these mechanisms may interact with online shopping, food delivery, entertainment, social commerce and small-value frequent purchases. The findings suggest that UPI itself should not be treated as an automatic cause of impulsive spending; rather, its frictionless characteristics can act as an enabling mechanism when combined with promotional cues, emotional triggers and weak budgeting controls. The paper concludes with implications for financial literacy, responsible fintech design, consumers, educators and policymakers.