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INSPIRA-JOURNAL OF MODERN MANAGEMENT & ENTREPRENEURSHIP(JMME) [ Vol. 16 | No. 1(II) | January - March, 2026 ]

A Study on the Growth of UPI Transactions and Its Impact on Consumer Spending Behaviour: Evidence from Bengaluru Rural District

Dr. Srinivasa.M

Purpose: The study aims to analyse the growth of the Unified Payments Interface (UPI) and its impact on consumer spending behaviour in Bengaluru Rural District. With increasing smartphone penetration and digital infrastructure, UPI has become a dominant payment system in India, processing over 200 billion transactions annually and influencing consumer financial habits and spending patterns.

Design/Methodology: The study adopts a descriptive and analytical research design. Primary data was collected from 200 respondents using a structured questionnaire, while secondary data was obtained from RBI, NPCI reports and academic literature. Statistical tools such as percentage analysis, Chi-square test and ANOVA were used to analyse relationships between variables like age, income, UPI usage and spending behaviour.

Findings: The findings indicate that UPI usage is high among respondents, with most preferring it for routine transactions. Chi-square results show a significant relationship between UPI usage and increased spending behaviour. ANOVA results reveal significant differences in spending across age and income groups. The study also finds that the convenience of digital payments reduces the “pain of paying,” leading to higher transaction frequency and occasional impulsive spending.

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