Psychological Dependence on Cashless Payments: A Study on Digital Payment Addiction Among Young Consumers.

Abstract

That cash is less common in today's world, changing the way consumers spend and creating a significant change in consumer habits, especially for the younger generation. This study aims to address the psychological dependence that arises with the use of digital payment systems and to analyze the effects of perceived convenience in payment, less aversion to paying and habit on psychological dependence and preference for cashless payments. Data analysis was performed using quantitative research methodology which applied the Structural Equation Modeling (SEM). The results indicate that the extent of use and convenience are significant factors in psychological dependence, and the level of psychological dependence is a significant factor in preference for cashless payments. The less painful it is to pay leads to improved transaction preference and little impact on dependence. The study underscores the rising behavioral impact of digital payment technologies and the importance of responsible financial behavior and digital financial literacy of young consumers