THE EFFECT OF DIGITAL PAYMENT SYSTEMS ON CONSUMER SPENDING BEHAVIOR AND FINANCIAL STABILITY

Abdul Rosid

doi:10.62207/75znr577

Authors

Abdul Rosid Universitas Sultan Ageng Tirtayasa, Banten, Indonesia Author

DOI:

https://doi.org/10.62207/75znr577

Keywords:

Digital Payment Systems, Consumption Behavior, Demographic Groups, Financial Literacy, Fintech, Impulse Spending, Financial Inclusion

Abstract

The growth of digital payment systems has changed consumption behavior and financial stability across various demographic groups. This research aims to explore how digital payment systems influence shopping behavior among different age groups, income levels and education levels. Using a Systematic Literature Review (SLR) approach, this research analyzed 43 relevant articles from various academic databases. Findings show that younger generations, especially Millennials and Gen Z, tend to spend more due to the ease of digital transactions, while older generations are more skeptical about adopting this technology. In addition, income and financial literacy factors play an important role in determining an individual's response to digital payment systems. This research provides insights for stakeholders, including regulators and the fintech industry, to design more inclusive and effective strategies for managing the impact of digital payment systems.

References

Abrazado, G., Coronel, C., & Ocampo, G. (2024). Utilization of digital financial transactions and perspectives of digital payment among school employees. Journal of Business and Management Studies, 6(6), 01-18. https://doi.org/10.32996/jbms.2024.6.6.1

Afandi, M. (2023). Analyzing the impact of digital transformation in islamic philanthropy using utaut model. Afkaruna, 19(2), 317-337. https://doi.org/10.18196/afkaruna.v19i2.16086

Amankwa, E., Amissah, G., & Okoampa-Larbi, R. (2023). Cashless economy – the nexus of covid-19 and e-wallet usage intentions: a multi-group analysis between formal and informal sector workers in ghana. Journal of Science and Technology Policy Management, 14(6), 1155-1183. https://doi.org/10.1108/jstpm-09-2021-0137

Amron, M., Mohamad, M., & Noh, N. (2024). E-wallet payment usage among young consumers using technology continuance theory. Information Management and Business Review, 16(2(I)S), 189-197. https://doi.org/10.22610/imbr.v16i2(i)s.3753

Aziz, A. and Naima, U. (2021). Rethinking digital financial inclusion: evidence from bangladesh. Technology in Society, 64, 101509. https://doi.org/10.1016/j.techsoc.2020.101509

Banna, H. and Alam, M. (2021). Impact of digital financial inclusion on asean banking stability: implications for the post-covid-19 era. Studies in Economics and Finance, 38(2), 504-523. https://doi.org/10.1108/sef-09-2020-0388

Chen, B. and Ren, J. (2022). Does the adoption of digital payment improve the financial availability of farmer households? evidence from china. Agriculture, 12(9), 1468. https://doi.org/10.3390/agriculture12091468

Devina, T. and Lukman, H. (2024). Does perceived usefulness, perceived ease of use, and perceived risk has influence on intention to use e-wallet?. Visa Journal of Vision and Ideas, 4(3). https://doi.org/10.47467/visa.v4i3.2434

Dudu, O., Alao, O., & Alonge, E. (2024). Advancing financial inclusion through digital payment platforms in emerging markets. Finance & Accounting Research Journal, 6(11), 2028-2060. https://doi.org/10.51594/farj.v6i11.1696

Ernawati, E., Putri, S., & Azzahra, T. (2023). Analysis of the impact of digital payment platforms on financial management during the covid-19 pandemic (case study of itb students). Economic Education and Entrepreneurship Journal, 6(1), 50-55. https://doi.org/10.23960/e3j/v6i1.50-55

Esawe, A. (2022). Understanding mobile e-wallet consumers’ intentions and user behavior. Spanish Journal of Marketing - Esic, 26(3), 363-384. https://doi.org/10.1108/sjme-05-2022-0105

Ezie, O., Oniore, J., & Ajaegbu, P. (2023). Financial technology and economic growth in nigeria: 2012q1-2022q4. Am. J. Financ. Inst., 1(1), 35-45. https://doi.org/10.54536/ajfti.v1i1.2325

Goel, I. (2024). Financial education and digitalisation: analysis of avenues. Sachetas, 3(1), 17-25. https://doi.org/10.55955/310003

Gupta, K. and Arora, N. (2019). Investigating consumer intention to accept mobile payment systems through unified theory of acceptance model. South Asian Journal of Business Studies, 9(1), 88-114. https://doi.org/10.1108/sajbs-03-2019-0037

Hamid, F. and Loke, Y. (2020). Financial literacy, money management skill and credit card repayments. International Journal of Consumer Studies, 45(2), 235-247. https://doi.org/10.1111/ijcs.12614

Harishanthan, S. and Neruja, S. (2023). Factors influence on usage of e-wallets among millennials in the sri lankan context. Asian Journal of Marketing Management, 2(01). https://doi.org/10.31357/ajmm.v2i01.6253

Hasbi, H. (2024). Mobile payment in overspending behavior with gender as a moderating variable: empirical evidence from gen z. Journal of Research in the Social Sciences, 5(1), 34-49. https://doi.org/10.23917/social.v5i1.3794

Huy, D. and Huynh, V. (2023). Determinants affecting intention to use e-wallets in vietnam: an empirical case of momo. Kne Social Sciences. https://doi.org/10.18502/kss.v8i20.14598

Ilyas, R. (2024). The potential application of digitalization and economic growth of micro, small, and medium enterprises.. https://doi.org/10.4108/eai.21-10-2023.2343526

Jaslina, J., Syahirah, J., Juaini, B., & D., T. (2022). Factors associated with the adoption of e-wallets among students. Borneo Akademika, 6(1), 76-84. https://doi.org/10.24191/ba/v6i1/80379

Kamal, I., Rizki, R., & Aulia, M. (2023). The enthusiasm of digital payment services and millennial consumer behaviour in indonesia. International Journal of Professional Business Review, 8(2), e0923. https://doi.org/10.26668/businessreview/2023.v8i2.923

Mavļutova, I., Spilbergs, A., Verdenhofs, A., Nātriņš, A., Arefjevs, I., & Volkova, T. (2022). Digital transformation as a driver of the financial sector sustainable development: an impact on financial inclusion and operational efficiency. Sustainability, 15(1), 207. https://doi.org/10.3390/su15010207

Ming, K. and Jais, M. (2022). Factors affecting the intention to use e-wallets during the covid-19 pandemic. Gadjah Mada International Journal of Business, 24(1), 82. https://doi.org/10.22146/gamaijb.64708

Ming, Y., Li, C., & Chen, J. (2020). Acquisition mode and credit card overspending behavior: an empirical analysis of the credit card industry. Journal of Consumer Affairs, 55(1), 232-253. https://doi.org/10.1111/joca.12341

Naufalia, V. (2022). The influence of digital payment and e-service quality on consumer behavior among Shopee users in the DKI Jakarta area. Journal of Tourism Digital Business and Management, 1(1), 1-9. https://doi.org/10.33480/jasdim.v1i1.3011

Okoyeuzu, C., Kalu, E., & Ukpere, W. (2019). Evaluating the impact of electronic payment channels on sustainable financial inclusion in nigeria. Journal of Reviews on Global Economics, 8, 1363-1370. https://doi.org/10.6000/1929-7092.2019.08.119

Paat, T., Tulung, J., & Saerang, R. (2022). Analyzing behavioral intention of e-wallet usage in food and beverage at micro small and medium enterprises (MSME) in Manado. Emba Journal Journal of Economic Research, Business Management and Accounting, 10(2), 227. https://doi.org/10.35794/emba.v10i2.39761

Panglipursari, D., Arif, M., & Pujianto, P. (2023). Digital payment maximization strategy as regional economic resilience in Surabaya city mass bus transportation. Scientific Journal of Economic Management & Accounting (Mea), 7(3), 797-812. https://doi.org/10.31955/mea.v7i3.3237

Prasasti, A., Aulisaina, F., & Hakim, M. (2021). Does discount matter in indonesia e-wallet race? a qualitative study on generation z e-wallet preferences during pandemics. The Winners, 22(1). https://doi.org/10.21512/tw.v22i1.7019

Prasetya, M., Mohamed, I., Shuhidan, S., & Wasistha, G. (2021). The covid-19 pandemic as a driving force for e-wallet adoption in indonesia. Business and Management Horizons, 9(2), 40. https://doi.org/10.5296/bmh.v9i2.19335

Pratiwi, R. and Saefullah, K. (2022). The use of payment technology through financial literacy. digits, 42-51. https://doi.org/10.24198/digits.v1i1.38516

Purnama, S., Bangun, C., & Faaroek, S. (2021). The effect of transaction experience using digital wallets on user satisfaction in millennial generation. Aptisi Transactions on Management (Atm), 5(2), 161-168. https://doi.org/10.33050/atm.v5i2.1593

Said, R., Najdawi, A., & Chabani, Z. (2021). Analyzing the adoption of e-payment services in smart cities using demographic analytics: the case of dubai. Advances in Science Technology and Engineering Systems Journal, 6(2), 113-121. https://doi.org/10.25046/aj060214

Sriyono, S., Andjani, S., & Irawan, M. (2023). Evaluation of fintech's impact on financial inclusion in indonesia: a case research on the use of digital payment services. The Management Journal of Binaniaga, 8(2), 91-102. https://doi.org/10.33062/mjb.v8i2.32

Teker, S., Teker, D., & Orman, I. (2022). Evolution of digital payment systems and a breakthrough. Journal of Economics Management and Trade, 100-108. https://doi.org/10.9734/jemt/2022/v28i1030452

Thomas, M., Desai, K., & Seenivasan, S. (2011). How credit card payments increase unhealthy food purchases: visceral regulation of vices. Journal of Consumer Research, 38(1), 126-139. https://doi.org/10.1086/657331

Wang, M., Ling, A., He, Y., Tan, Y., Zhang, L., Chang, Z., … & Ma, Q. (2022). Pleasure of paying when using mobile payment: evidence from eeg studies. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.1004068

Wang, Z. (2023). The impact of digital payment on consumer behavior in china. BCP Business & Management, 39, 89-92. https://doi.org/10.54691/bcpbm.v39i.4023

Yaakop, A., Shi, Y., Foster, B., & Saputra, J. (2021). Investigating e-wallet adoption of covid19 intra-period among malaysian youths': integrated task-technology fit and technology acceptance model framework. International Journal of Data and Network Science, 295-302. https://doi.org/10.5267/j.ijdns.2021.6.004

Yang, M., Mamun, A., Mohiuddin, M., Nawi, N., & Zainol, N. (2021). Cashless transactions: a study on intention and adoption of e-wallets. Sustainability, 13(2), 831. https://doi.org/10.3390/su13020831

Yawe , B. , Ddumba-Ssentamu , J. , Nnyanzi , J. , & Mukisa , I. (2022). https://doi.org/10.5772/intechopen.105858 Role of mobile money and digital payments in financial inclusion for sustainable development goals in Africa

Zahid, N. (2024). The size of transactions, types of products, and the choice between electronic payments and cash usage. Financial Engineering, 2, 227-232. https://doi.org/10.37394/232032.2024.2.21

Zhang, X. (2024). Machine learning insights into digital payment behaviors and fraud prediction. Applied and Computational Engineering, 67(1), 61-67. https://doi.org/10.54254/2755-2721/67/2024ma0066