DIGITAL PAYMENT ADOPTION, FINANCIAL INCLUSION OUTCOMES, AND ONLINE BUYING BEHAVIOUR IN EMERGING URBAN CENTRES: A THEORETICAL REVIEW
Keywords:
Digital Payments, Financial Inclusion, Online Buying Behaviour, Emerging Urban Centres, Tier-2 Cities, Tier-3 Cities, UPI Adoption, Consumer BehaviourAbstract
Emerging urban centres in India comprising tier-2 and tier-3 cities are rapidly transforming into digital economy hubs, driven by expanding internet penetration, smartphone adoption, and government-led financial inclusion initiatives. This review paper synthesises theoretical and empirical literature on three interrelated domains: digital payment adoption drivers, financial inclusion outcomes, and online buying behaviour patterns in these urban contexts. Drawing on Technology Acceptance Model extensions, behavioural economics insights, and consumer behaviour frameworks, the paper identifies conceptual linkages, empirical evidence, and research gaps in understanding how digital payments reshape financial access and consumption patterns. The review proposes an integrated conceptual framework linking adoption determinants to inclusion quality and online purchasing behaviour, suitable for empirical investigation in heterogeneous consumer segments across emerging urban markets. Findings indicate that while digital payment adoption in smaller cities has surged with in-store digital transactions rising from 42% to 50% between 2024 and 2025 significant variations persist across income groups, digital literacy levels, and local infrastructure availability. The paper concludes by highlighting critical research gaps and implications for policy, practice, and future scholarship.
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