IMPACT OF FINTECH INNOVATIONS ON MIDDLE-INCOME GROUP'S EXPENDITURE PATTERNS IN DELHI-NCR

Abstract

This research investigates how fintech innovations—particularly Unified Payments Interface (UPI), mobile wallets, and Buy Now Pay Later (BNPL) services—are influencing the expenditure behaviour of the middle-income population in the Delhi-NCR region. With India leading the world in fintech adoption, this study focuses on the urban middle-class demographic, a key driver of consumer spending and digital payment adoption. The study adopted a mixed-methods approach, utilizing a structured survey administered to 105 respondents fitting the middle-income bracket (₹5–15 lakh annual household income). The majority were young, educated, and tech-savvy individuals, reflective of Delhi-NCR’s fintech- adopting population. Data analysis was conducted using Microsoft Excel and SPSS, including descriptive statistics and chi-square tests to identify associations between fintech usage and changes in consumer behaviour. Key Findings:  Fintech Penetration: UPI and mobile wallets were used daily by over 70% of respondents. BNPL was used by ~63%, indicating rising comfort with fintech-based credit.  Expenditure Patterns: 66.7% reported an increase in monthly expenditure after adopting fintech tools. Most of this was attributed to convenience and ease of use.  Impulse Buying: 80.9% admitted to frequent or occasional impulse purchases post- fintech adoption, with heavy UPI users significantly more likely to make such purchases.  Credit and Financial Strain: While BNPL was helpful for purchase flexibility, 13.3% reported missing a payment—raising concerns about financial overextension.  User Perceptions: Respondents strongly valued convenience but also recognized that ease of digital payments sometimes led to overspending. Many appreciated fintech’s ability to track expenses, suggesting potential for improved financial management. Implications:  For Consumers: Fintech improves access and convenience but can also encourage impulsive or excessive spending. Financial literacy and budgeting tools are critical.  For Fintech Providers: Responsible innovation and clear disclosures—especially for BNPL products—are vital to prevent debt traps.  For Policymakers: As digital payments become mainstream, consumer protection policies must evolve to address new risks while supporting financial inclusion. This research contributes empirical insights into the behaviour al impact of fintech in a key urban Indian context. It highlights both the transformative potential and emerging challenges of fintech for the middle-income segment, offering a foundation for more targeted interventions, product designs, and policy frameworks.