'We've gamified spending': Analyst shows UPI leads to 300% more expenses than cash

Is UPI making Indians spend more? Financial analyst Daksh Gakhar thinks so — and he’s backing it up with numbers from his own wallet.

In a LinkedIn post, Gakhar called India’s popular digital payments platform “a curse,” arguing that its convenience masks a deeper behavioral trap: unconscious overspending.

To prove his point, Gakhar conducted a two-week personal finance experiment. In the first week, he used only UPI — spending ₹6,000. In the second, he used only cash — spending just ₹1,500. That’s a staggering 300% increase when using digital payments.

“Giving away a ₹500 note hurts. But a tap on a screen? Feels like nothing,” Gakhar wrote. “We’ve gamified spending.”

His daily breakdown paints a clear pattern. On UPI, expenses routinely exceeded ₹700 a day, with spikes on Wednesday (₹1,100) and Friday (₹1,200). But during the cash week, spending dropped to an average of ₹214 per day, rarely crossing ₹300.

Gakhar’s thesis? UPI’s frictionless ease alters the psychology of purchase. With no tangible handover of money, users detach from the cost. “You’re not paying, you’re tapping,” he warned.

UPI, or Unified Payments Interface, processed over 14 billion transactions in June 2025 alone. Lauded for revolutionizing digital finance in India, it has also sparked concern among some economists and behavioral scientists about its effect on saving habits and impulse purchases.

While Gakhar doesn’t advocate abandoning UPI, he urges users to test their spending habits. “Try using cash for a week,” he suggested. “You might be shocked.”

His post has ignited debate in fintech circles, drawing both praise for its data-driven approach and criticism for oversimplifying spending behavior. Still, Gakhar’s message cuts through: convenience can come at a cost — one you may not notice until your bank balance does.