The Effect of Digital Payment Methods on Consumer Spending Behaviour

a quantitative study of UK adult consumers

Abstract

As the UK economy increasingly shifts towards cashless transactions, empirical evidence on how digital payment methods influence young adults’ spending behaviour remains limited, particularly from behavioural and technology acceptance perspectives. This study examines the impact of digital payment methods on consumer spending behaviour among UK young adults aged 18–35, addressing a gap in existing literature regarding the roles of payment convenience and usage frequency. Grounded in the Technology Acceptance Model and the Theory of Planned Behaviour, the research investigated the relationship between digital payment usage frequency and spending behaviour, assessing whether digital payments are associated with higher spending than cash transactions, and examined the influence of perceived usefulness (convenience) on payment preferences. A quantitative survey design was employed, yielding 142 valid online responses. Data was analysed using descriptive statistics, multiple regression analysis, cross-tabulation, and one-way ANOVA in SPSS. The findings indicate that frequent use of digital payment methods is significantly associated with increased consumer spending, with perceived usefulness emerging as a key predictor of payment behaviour. Conversely, demographic variables such as age and income showed minimal influence. Despite limitations related to self-reported data and a specific age group, the study offers evidence-based implications for fintech firms, retailers, and policymakers.