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Bachelor Thesis from the year 2022 in the subject Business economics - Investment and Finance, grade: 1.0, , language: English, abstract: This study attempted to determine if new digital payment providers affected customers' inclination to make online transactions. To summarize succinctly, the digital transformation, payment and purchase behavior, and digital payment providers are interconnected and have an influence on the customer. There are numerous sorts of purchasing behavior, and it is becoming increasingly important for businesses to adapt to these types and evaluate what is necessary and irrelevant to the buyer. Customers' payment methods, namely digital payment providers, can influence their purchasing decisions. This is just one of the many factors that influence the customer decisionmaking process. In the past decade, electronic commerce has been viewed as a beneficial application of technology. Several e-commerce activities include highly updated and enhanced facilities, such as online purchases, and remote payments, which streamline and standardize the payment process. Due to the ongoing growth of technology, it is necessary to investigate the elements associated with payment methods that impact a customer's purchasing behavior. Due to the access and power over digital technology, consumers are regarded as destined for the corporate world and to have a considerable effect on it. This thesis thereby contributes to study the influence of new digital payment mechanisms on purchasing behavior. For a deeper understanding, the research employed different theories with reference to digital transformation, consumer and purchasing behavior and digital payment and providers. In addition, a quantitative study on demographic characteristics, the use and purpose of the Internet, frequency, types, and spending of shopping per month, payment habits and the choice and use of digital payment providers was done to address the research question. There was just one age group considered: 20- to 30-year-olds, and the inquiries were limited to online clothes purchases. The study specifically focused on the use of the payment service Klarna.