Instant Gratification as a Mediator between Digital Payment Use and Overspending among College Students

Abstract

In India, the rapid expansion of Unified Payments Interface (UPI), mobile wallets, and card-based transactions has enabled seamless and instantaneous financial exchanges. However, there is a lack of empirical evidence examining whether digital payment usage directly leads to overspending, or whether this relationship is mediated by behavioural traits such as instant gratification. This study examines the mediating role of instant gratification in the relationship between digital payment usage and overspending behaviour among college students. A quantitative, cross-sectional research design was employed using primary data collected from 231 respondents through a structured questionnaire. Data analysis involved both descriptive and inferential statistical techniques. Correlation, regression, and bootstrapped mediation analyses were conducted. The results indicate that digital payment usage significantly predicts instant gratification and overspending behaviour. However, the direct effect becomes insignificant when instant gratification is introduced, indicating full mediation. These findings suggest that behavioural tendencies toward immediate consumption, rather than technological factors alone, drive overspending in digital payment environments. Future research should improve generalisability by using probability-based sampling and comparing different demographic groups, such as working professionals and older consumers. Longitudinal studies are recommended to examine the long-term effects of digital payment usage on instant gratification and overspending. Incorporating control variables such as income, gender, and financial independence can further enhance the reliability and robustness of future studies.