DIGITAL PAYMENT CONVENIENCE AND OVERSPENDING BEHAVIOUR THROUGH IMPULSIVE BUYING; MODERATING ROLE OF FINANCIAL SELF-CONTROL

Abstract

This study examined how digital payment convenience affects overspending behaviour through impulsive buying and whether financial self-control moderates this process. Drawing on the pain of paying theory, mental accounting theory and self-control theory, the study proposed a moderated mediation model in which impulsive buying links payment convenience with overspending, and financial self-control conditions both stages of this path. Data were collected through a structured questionnaire from 365 adult users of digital payment methods in five major cities of Pakistan and were analyzed using partial least squares structural equation modelling. The results showed that digital payment convenience had a positive effect on impulsive buying, and impulsive buying had a positive effect on overspending behaviour. However, digital payment convenience did not have a significant direct effect on overspending, and impulsive buying fully mediated this relationship. Contrary to expectations, financial self-control did not moderate either the relationship between payment convenience and impulsive buying or the relationship between impulsive buying and overspending. These findings suggest that convenient digital payments do not lead to overspending by themselves but do so by encouraging unplanned purchases, and that general self-control may not be enough to protect consumers in fast and frictionless payment settings. The study adds to the literature on the cashless effect by identifying the behavioural mechanism through which convenience turns into overspending. The findings also suggest that fintech firms and policymakers should consider design features such as spending alerts and confirmation prompts, along with financial education, to help consumers manage their spending.