The Role of Digital Payment Systems in Shaping Consumer Behaviour in the E-Commerce Sector in Salem, Tamil Nadu

Abstract

This quantitative study describes the usage patterns and perceptions of Digital Payment Systems (DPS) among active e-commerce consumers in Salem, Tamil Nadu. Drawing primary data from 195 online shoppers, the research documents the frequency of DPS use, mode preferences, and their reported impact on purchasing behaviour. Key descriptive findings from the data distribution indicate that UPI is the most preferred payment mode, selected by most of the respondents, largely due to its convenience and speed. A substantial majority of the consumers reported that the availability of DPS led to an increase in their online shopping frequency, confirming a significant reported behavioural shift. Consumers indicated a higher level of trust in DPS compared to Cash on Delivery, with security measures like OTPs being the most cited factor for trust. Furthermore, while many are motivated by discounts, an even larger proportion indicated they would continue using DPS even without offers. The study concludes that DPS are highly adopted and reported to be influential tools, which accelerate the digital retail consumption frequency and expenditure among shoppers in Salem