Digital Payments and Financial Psychology: Understanding Human Behavior in Cashless Economies

Abstract

The rapid proliferation of digital payment systems has fundamentally transformed consumer financial behavior, creating unprecedented opportunities to examine the psychological mechanisms underlying economic decision-making in cashless economies. This mixed-methods study investigates the complex interplay between digital payment adoption and financial psychology, examining how technological affordances reshape spending patterns, impulse buying, trust formation, and financial well-being. Phase 1 employed a quantitative survey (n=487) utilizing validated instruments including the Technology Acceptance Model (TAM), Theory of Planned Behavior (TPB), Trust Scale, and Financial Anxiety Scale to assess adoption determinants and behavioral outcomes. Phase 2 conducted semi-structured interviews (n=32) to explore lived experiences and psychological processes underlying digital payment usage. Quantitative findings reveal that perceived ease of use (β=0.42, p