ASSESSING THE IMPACT OF DIGITAL PAYMENT SYSTEMS ON UNIVERSITY STUDENTS’ SPENDING PATTERNS: A QUANTITATIVE STUDY

Abstract

Digital payment systems have transformed financial transactions by offering convenience and efficiency, particularly for university students. This quantitative study examined the effect of digital payment usage on the spending behavior of students in Nigerian universities. Using a descriptive-correlational research design, data were collected from three hundred fifty (350) students across the University of Lagos, Obafemi Awolowo University, and Ahmadu Bello University. The study applied the Theory of Planned Behavior to explore how students’ attitudes, social influence, and perceived behavioral control shape their financial decisions. Findings revealed that positive attitudes toward digital payments significantly influence spending behavior, while peer influence does not have a notable effect. Students with higher perceived financial control demonstrated more responsible spending habits. Digital payment platforms, such as Flutterwave, Paga, and Paystack, were found to facilitate both convenient transactions and occasional impulsive purchases. Statistical analyses, including correlation, regression, and Chi-Square tests, indicated that demographic factors such as age, gender, and monthly allowance play a significant role in students’ spending behavior. The results highlight the importance of integrating financial literacy programs to promote responsible digital payment use among Nigerian university students.