Investigating the Role of Anticipatory Regret and Payment Salience on Consumer Decision-Making in Digital Transactions: A study on Consumer Impulsivity among Indian Young Adults

Abstract

The rapid adoption of Unified Payments Interface in India has transformed the financial landscape by making it a frictionless ecosystem. This shift has added convenience to the lvies of consumers but it has also led to a reduction in psychological mechanisms critical for moderating impulsive consumerism. This study attempts to investigate the impact of digital payment methods on impulsive decision making, by seeing whether UPI usage reduces experience of anticipatory regret. An exploratory study (N = 94) with young adults of urban nexus, characterised as non-wage earners (age 18-25) was conducted. Data collection method included a Digital Payment Utilization Survey (α = .767), an Anticipatory Regret Scale and a 48-item delay discounting task. Major findings found that UPI usage positively predicted behavioral impulsivity (β = .242, p = .019, R² = .058). Anticipatory regret was found to be a strong negative predictor of impulsivity (β = -.439, p < .001, R² = .193). A significant negative association was also observed between DPUI and ARS scores (r = -.472, p < .001), confirming a blunting effect. Mediation analysis (Hayes PROCESS) revealed significant indirect effect of UPI usage on impulsivity through anticipatory regret (B = 0.078, SE = 0.025, p = .002, 95% CI [0.030, 0.126]), and the direct effect of UPI on impulsivity became non-significant when the mediator was introduced (B = 0.017, p = .676). These results suggest conclusive proof of a full mediation, meaning that digital payment interfaces systematically suppress pre-decisional self-regulation, thus allowing impulsivity to run unchecked. The study’s findings provide large-scale implications for fintech design policies, particularly the deliberate introduction of transactional friction for consumer financial well-being.