How Banking and UPI Apps Use Behavioural Economics to Encourage Spending: A Journey into the Hidden Side of Finance
Header Image for blog (toc) #title=(Table of Content) T(caps) oday, I want to take you on a journey to explore how banking and UPI (Unified Payments Interface) apps might be subtly influencing us to spend more through the principles of behavioural economics. But before we dive into that, let me share the story that inspired this post. Recently, I was working on a problem statement to prepare a case study for a shared wallet concept for PhonePe. The task seemed simple enough: design an app feature where users can add their family members or friends to a shared wallet. Everyone in that wallet could then pay through it, view, and manage their expenses effectively—all while reducing the hassle of manual calculations and stress. As someone living in a remote area, I understand how stressful it can be to manage money efficiently, especially when dealing with everyday expenses. I often use apps like money managers, Split wise, or even WhatsApp groups to record my bills, hoping tha...