The impact of digital payments on consumer behavior of people in An Giang

Abstract

The objective of this study is to estimate the impact of digital payments on consumer spending of residents in An Giang province. Using the PSM estimation method with data collected from 391 residents in Long Xuyen, Chau Doc, Chau Phu and Cho Moi districts, the results show that five factors influence the use of digital payments among residents (step 1): age, income, distance from home to district center, education, and gender. The results of step 2 of the PSM method indicate that individuals who use digital payment methods spend more on consumption compared to those who do not, ranging from 7% to 11.5%. Based on these findings, the paper suggests that government agencies should implement policies to encourage more residents to adopt digital payment methods.