Digital Payment Adoption and Changing Consumer Purchase Behaviour in Emerging Markets
DOI:
https://doi.org/10.63345/Keywords:
Digital Payments, Consumer Purchase Behaviour, Emerging Markets, Payment Friction, Financial Technology, Machine LearningAbstract
Digital payment ecosystems are rapidly altering how consumers search, evaluate, purchase, and repurchase goods and services across emerging markets.
This study examines whether digital payment adoption changes purchase behaviour beyond the conventional effects of convenience, accessibility, and transaction speed. The research specifically conceptualizes payment friction reduction as a behavioural mechanism linking digital payment intensity with purchase frequency, discretionary expenditure, impulse purchasing, and merchant switching. A multi-market analytical framework is proposed in which transaction behaviour is examined alongside consumer-level indicators of trust, digital capability, promotional responsiveness, and perceived expenditure visibility. The study distinguishes between simple digital-payment adoption and payment intensity, recognizing that occasional and habitual users may exhibit substantially different purchasing responses.
It further proposes machine-learning-based consumer segmentation to identify heterogeneous behavioural profiles that conventional aggregate adoption models may conceal. The expected contribution is an integrated explanation of how digital payments simultaneously improve transactional efficiency while potentially reducing the psychological salience of spending.
The framework offers implications for financial-service providers, retailers, policymakers, and consumer-protection authorities seeking to balance digital financial inclusion with sustainable consumer decision-making.
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