OPERATIONAL EFFICIENCY OF UPI AND ITS IMPACT ON CONSUMER SPENDING BEHAVIOUR IN INDIA

Abstract

This study is based on a few well-known frameworks such as the Technology Acceptance Model (TAM), Unified Theory of Acceptance and Use of Technology (UTAUT2), and Diffusion of Innovations Theory. These models have been widely used to explain how people accept new technologies, so they provide a useful base for understanding digital payment adoption in India. A descriptive and analytical research design has been used. For primary data, a structured questionnaire was circulated among respondents from different age groups, income levels, and professions. The idea was to capture variation in usage behaviour. Along with this, secondary data from RBI reports, NPCI data, World Bank sources, and journal articles were also referred to. The data analysis was done using SPSS. Techniques like reliability testing, EFA, CFA, and regression were applied to test the hypotheses. The results show that perceived usefulness, ease of use, and security are the most important factors influencing whether people continue using UPI or not. At the same time, the study also indicates a shift in spending behaviour. Users who frequently rely on digital payments tend to spend more on non-essential items, and in some cases, make quicker or impulsive purchase decisions. However, this is not the same for everyone. Trust in digital platforms and financial literacy levels make a noticeable difference, especially among first time users and people from semi-urban areas. Overall, UPI has clearly improved the speed and convenience of payments. But beyond that, it is also changing how people spend money. This has important implications. There is a need to strengthen digital infrastructure, improve awareness about cybersecurity, and promote financial literacy so that increased fintech usage leads to better financial outcomes in the long run.