Unlocking Spending Trends: The Behavioural Impact of Digital Wallets on Modern Consumers

Abstract

This paper aims to analyze how far the emergence of digital wallets has gone in changing consumer expenditure trends. Through the assessment of the convenience and security that digital wallets provide and the impacts of such factors on purchasing behavior and consumption, the study is conducted. This research also explores the psychological and socio-economic consequences of digital wallet adoption focusing on the movement from consumption of cash to consumption of digital money on consumers’ psychology for planning, impulse buying, and handling of money. The study adds to the line of research on financial technology and guides firms and policymakers in the advancement and use of digital wallets in engaging the consumer.