Tapping the consumption potential of rural residents and promoting their consumption upgrading is of strategic significance for achieving the goal of rural revitalization and facilitating positive interplay between domestic and international economic flows.This paper constructs a theoretical analytical framework for the impact of digital payment on rural residents’ consumption upgrading，and uses the data from China Household Finance Survey（CHFS） to verify the research hypothesis.We found that digital payment has a significant positive impact on promoting the consumption upgrading of rural residents，which is mainly manifested in the fact that digital payment can effectively reduce the price sensitivity and financial constraints of commodity consumption，and promote the consumption upgrading of rural residents through two intermediary pathways of psychological accounts and consumer credit.Moreover，there are differences in the impact of digital payments from different sources of funding on the consumption upgrading of rural residents.Digital payments from current savings are more effective in promoting the consumption upgrading of rural residents than digital payments from consumer credit.Therefore，it is recommended to focus on digital empowerment to improve the digital payment environment in rural areas，to innovate consumer credit products and tocontinuously improve the income of rural residents so as to promote the development of new types of consumption by rural residents and unleash consumption potential.