How UPI payments affect your brain: Ever since the concept of digital payment came into our lives, the habit of carrying physical cash has gone. Digital payment methods like UPI have changed the way consumers look at spending money.
It has become so easy to spend without having to carry cash in hand that now you don’t even feel the pain of paying. Scan the QR code, see the green tick of “Payment Successful” and that’s it! But we don’t understand that behind this ease, the math of our brain is completely changing.
The pain of paying is real
Researchers from Carnegie Mellon and Stanford universities have found that when we spend money, the same parts of the brain that are associated with physical pain are activated. Therefore, feeling a slight pain when we pay cash is not only emotional, but also scientifically true.
Renowned psychiatrist Dr. According to Sandeep Vohra, “Our brain is not naturally prepared for digital money. When you hand over a ₹500 note, the movement created by that action creates discomfort in the mind, this is called the ‘pain of paying’. But, in simple digital payments like UPI, this sensory experience disappears. Therefore, the tendency to pause for a moment before spending is reduced and people make quick decisions. Over time, we are becoming emotionally detached from money, because the act of paying or spending money online now happens silently, almost without feeling it.”
UPI changes the ‘spending psychology’ of your brain
In India, UPI has made spending very easy. You don’t need to open your wallet, just use your thumb and enter a four-digit PIN. Earlier, there was a ‘friction’ in this process while paying money. Like opening the wallet, counting the note, giving. This process used to make us think twice. But now? You are paying ₹300 for a coffee, ₹499 for sushi and ₹999 for something you don’t want on Blinkit and you don’t feel anything.
Cash is money, UPI is just data of numbers
When you hold a ₹500 note in your hand, it feels real. You feel its weight, texture. You feel like you own it. But money on UPI feels abundant. Because it is just numbers on a screen. It has no touch, no weight. So the brain doesn’t see it as ‘real’ money.
According to Mukesh Pandey, Director of Rupyaa Paisa, “The brain reacts differently between a ₹500 note and a ₹500 UPI transaction. There is touch in the note, there is a sense of loss. There is more freedom in digital money, so it is easier to spend”.
Digital spending = Dopamine spending
Every UPI payment creates a wave of dopamine in the brain. The message of “Payment Successful” gives a small pleasure.
In cash, however, the process is slow. Pay, watch, take a break, think. But in UPI, everything happens in an instant. No pain, just satisfaction. That’s why the brain loves spending.
According to Vidhi Ashok Bhatt, CEO of LIGHT – Credit for UPI, “Indian consumers are still conscious about spending. They keep a ₹500 note in their wallet, but UPI payments are made against the bank balance, which is always higher. So UPI transactions are not careless but purposeful, they are just easier to access.”
How to boost the brain in UPI transactions?
Bring back some friction: Don’t link UPI to your main account. Keep a separate wallet for specific expenses each month.
Record every scan: Use apps like Walnut or Money Manager to increase your digital spending awareness.
Keep cash transactions: When a note leaves your hand, the brain senses “money gone”, which creates an emotional connection with money.
Wait 10 seconds: Wait 10 seconds before every UPI payment. This will help you realize that there are many ‘small costs’ that can be avoided.
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