Aim/Purpose: The purpose of the study is to assess the use of digital payment systems and evaluate their influence on the spending behavior of young customers.

Design/Methodology/Approach: The study adopts a quantitative design utilizing primary data gathered via a structured survey. A simple random sampling method was employed to identify young customers, with a sample size of 230 respondents found appropriate. The acquired data were evaluated utilizing statistical methods including percentage analysis, descriptive statistics, t-tests, and ANOVA to investigate the correlation between digital payment adoption and spending behaviour.

Findings: The study found that 64.3 percent of the respondents agreed that Digital Payment apps encourage young consumers to shop more through offers and cashback.

Research Limitations/Implications: Limited to a specific group of respondents, the study may not represent the population. The findings may be biased due to self-reported data. However, the study helps businesses, financial institutions, and policymakers understand consumer behaviour and promote responsible digital payment use.