Abstract: The advent of cashless payment methods has resulted in changes in consumer purchasing behavior, leading to the use of plastic money becoming an inevitable part of today's financial transactions. The current study attempts to understand the relationship between plastic money usage and impulse buying behavior along with financial self-control in urban consumers based in the Southern districts of Tamil Nadu. In this regard, a quantitative approach has been chosen and primary data were collected from 590 urban consumers with the help of a well-structured questionnaire. The proposed conceptual framework has been empirically analyzed using Structural Equation Modeling (SEM). The findings suggest that the use of Plastic Money significantly and positively affects Psychological Gratification (β = 0.719, p < 0.001) and Impulse Buying (β = 0.444, p < 0.001) while having a significant negative effect on Financial Self-Control (β = −0.291, p < 0.001). Psychological Gratification has a significant positive effect on Impulse Buying (β = 0.368, p < 0.001) and a significant negative effect on Financial Self-Control (β = −0.158, p < 0.001). Impulse Buying also has a significant negative impact on Financial Self-Control (β = −0.433, p < 0.001). While Financial Literacy positively contributes to Financial Self-Control (β = 0.310, p < 0.001), it does not have any effect on Impulse Buying (β = 0.037, p > 0.05). Likewise, neither Plastic Money Usage nor Psychological Gratification had any significant effect on Financial Literacy. This research has contributed to the academic understanding of the effects of using plastic money in consumer behavior, behavioral finance, and electronic payments by showing that there is more to the use of plastic money than mere transactional benefits – namely, emotional reactions, impulse buying, and self-regulating one's financial activities. The results are consistent with the premises of Pain-of-Paying Theory and Self-Regulation Theory, thus proving the importance of psychological determinants in financial decisions. Moreover, this research has certain implications for policymakers and financial professionals when it comes to financial education programs aimed at behavioral financial literacy.
Keywords: Plastic Money Usage, Psychological Gratification, Financial Literacy, Impulse Buying, Financial Self-Control, Cashless Payments, Consumer Behavior.
Title: Beyond Cashless Convenience: The Psychological Impact of Plastic Money on Impulse Buying and Financial Self-Control Among Urban Consumers in Southern Districts of Tamil Nadu
Author: Elakkiya M, Dr.N.Bharathi
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 14, Issue 1, April 2026 - September 2026
Page No: 611-620
Research Publish Journals
Website: www.researchpublish.com
Published Date: 19-June-2026
