From Cash to Cashless: The Effect of Digital Payment Adoption on Students’ Spending Behaviour in Malaysia and India

Kok Ban Teoh (National Higher Education Research Institute, Universiti Sains Malaysia)
Rudresh Pandey (Institute of Management Studies)
Letong Zhang (Universiti Sains Malaysia)
Yoges Ganesamurthi (Universiti Sains Malaysia)
Zhaoye Zhu (Universiti Sains Malaysia)
Jiakuo Zhang (Institute of Management Studies)
Pradeep Kumar Tripathi (Institute of Management Studies)
Bhaumik Baijnath (Institute of Management Studies)
Rishabh Patel (Institute of Management Studies)
Daisy Mui Hung Kee (Universiti Sains Malaysia)

International Journal of Accounting & Finance in Asia Pasific
Vol 9, No 3 (2026): October 2026

The rapid adoption of digital payment systems has transformed financial transactions in Malaysia and India, raising concerns about their potential influence on students’ spending behaviour. This study examines the influence of digital payment adoption, security perception, social influence, and consumer habits on spending behaviour. A quantitative approach was employed using an online questionnaire involving 158 respondents from Malaysia and India. Data were analysed using descriptive statistics, Pearson correlation, and multiple regression analysis through SPSS. The results revealed that consumer habits were the only significant positive predictor of spending behaviour (? = 0.703, p .001). Conversely, digital payment adoption (? = ?0.076, p = .267), security perception (? = 0.122, p = .056), and social influence (? = 0.024, p = .711) showed no statistically significant independent effects. These findings highlight the importance of habitual payment practices in shaping spending behaviour. The study contributes to understanding digital financial behaviour and emphasises the need for financial literacy, responsible spending, and effective financial management among university students.