A PREDICTING ABOUT THE USER SPENDING PATTERNS OF DIGITAL TRANSACTION

Abstract

This study examines the impact of digital payment adoption on consumer financial behaviours in Tamil Nadu, India. It explores how digital transactions influence savings and discretionary spending, driven by the "invisible money effect," which reduces psychological barriers to spending. The research highlights the role of social media integration in amplifying impulsive purchases through social influences and the fear of missing out (FOMO). Using a quantitative approach, data from 300 respondents reveal a significant negative correlation between digital transactions and savings habits, and a strong positive relationship between digital payment adoption and discretionary spending. These findings underscore the need for enhanced financial literacy, personalized financial planning tools, and balanced regulatory frameworks to support responsible financial management in the digital age.