Click, Buy, Regret : Teen Spending behaviour on E-commerce platforms in the new UPI adopted economy in India

Research Question:
How has the penetration of UPI driven cashless shopping on ecommerce platforms impacted buying behaviour and impulse control of Indian teenagers

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Background and Rationale:
In the past 5 years, there has been a fundamental shift in payment mechanisms in India in the retail and business ecosystems. There have been huge movements toward digital payment infrastructure. Pivotal to this change has been the adoption and growth of UPI (Unified Payments Interface). The traditional experience of exchanging physical currency has vastly diminished. Payment applications on personal mobile devices serve as gateways for digital transactions. Among numerous other ramifications, one significant change is how Gen Z interacts with money, and this has significantly changed their buying behaviour and consumption patterns.

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Convenient and seamless experiences on UPI-enabled payment integrations are leading to impulse shopping, resulting in overspending. Also, immediate gratification needs are overpowering Gen Z consumers. Overspending is often detrimental for teenagers who are still learning to control their impulses. Frictionless payment systems, which remove psychological barriers, are detrimental to the young mind’s building money management skills.

 

This study aims to find the behavioral dynamics in teenagers impacted by the digital-first economy and whether convenience triggers spontaneous, unwanted shopping.

 

Goals:

1. The aim of this study is to establish the behaviour and frequency of UPI-led ecommerce shopping by teenagers.
 

2. To evaluate the emotional and psychological impacts of cashless spending
 

3. To find out the correlation of impulse purchases and subsequent regret with payment seamlessness
 

4. Finding ways and paths for young people who are growing in a digital economy for financial knowledge and prudence
 

5. The study would entail a quantitative approach and would be substantiated with qualitative observations

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Phase One: Online Survey

●Sample - 150 teenagers from diverse socioeconomic and regional backgrounds in India
 

● Area of inquiry: UPI usage pattern, spending behaviour, financial prudence while transacting and post purchase emotions

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Phase Two: Focus Group Discussions

●Two in person groups (8-10 participants each) to probe deeper emotional responses

 

● Topics that would be covered: impulse triggers, psychological ease of UPI payments and regret

 

● Insights to emerge from data analysis using statistical modelling and thematic coding techniques

 

Expected Results:​ 

● Finding insights into teenagers’ buying behaviour and attitudes towards seamless spending and post purchase regret

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● Establishing categories and conditions most prone to impulse purchases

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● Recommendations for youth oriented financial awareness and education in schools and homes

 

Sequential Order:

● June 2025: Online Survey & focus group design
 

● July 2025: Data collection (survey & discussions)
 

● August 2025: Analysis and insights
 

● September 2025: Write-up of the research paper
 

● October 2025: Final proposal submission and presentation

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References :

● Thaler, R. Misbehaving: The Making of Behavioural Economics – 2016

 

● NPCI UPI Statistics and Adoption Trends. – 2024

 

● OECD Youth Financial Literacy in the Digital Age – 2023

 

● Indian Express Teen Spending Habits and E-Commerce Trends – 2023

 

● KPMG Digital payments in India: A revolution in the making – 2022 https://home.kpmg/in/en/home/insights/2022/03/digital-payments.html

 

● Pew Research Center Teens, Social Media and Technology. - 2022 https://www.pewresearch.org/internet/2022/08/10/teens-social-media-and-technology-20 22/

 

● OECD Financial Literacy of Youth in the Digital Age: Policy Guidance - 2021