Shocking New IIIT Delhi Survey Finds: UPI Users Are Overspending!

It is not a myth that we, as Indians, have increasingly used the United Payments Interface (UPI) service via payment apps on our smartphones. 

It is also not a secret that many people have benefited from the convenience of digital payments, as more people are participating in spending.

However, a new study by IIIT Delhi has revealed that we are overspending because of the UPI.

74% of 276 individuals surveyed claimed they were spending more since adopting the e-payment system.

This is noteworthy because conventional thinking is people tend to overspend with free cash in their hands.

Contrarily, a tiny minority is actually saving money because of UPI.

What Inspired The Survey: 

In 2022, a researcher and 1990 Research Labs founder named Dharmesh Ba from Bengaluru raised an interesting question on X. 

He asked, "Does the convenience of UPI push us to spend more? I feel that the tangibility of cash makes us conscious about how much we spend. Paying 5×500 notes in cash is more painful than paying 2500 on UPI. What has been your experience with UPI and spending?" 

Many users admitted they were indeed spending more due to UPI. 

To explore this phenomenon further, Dhruv Kumar, an Assistant Professor at IIIT Delhi, along with his students, Harshal Dev and Raj Gupta, conducted a survey. 

They used Google Forms to collect responses from 276 individuals aged 18 and above, representing diverse backgrounds, age groups, and occupations to conclude.