Plastic Money Word File

Dissertation
On
“Mapping Consumer Behaviour and Attitude towards Plastic Money

with special reference to Ahmadabad city”
Submitted To:
Faculty of Management
In Partial Fulfilment of the award for the degree of
Integrated Masters of Business Administration
GLS UNIVERSITY
Under the Guidance of:
Dr. Hiteksha Joshi
Submitted By:
Mayur Purbiya (Enrollment No.201600510010101)
Rushi Rathod (Enrollment No.201600510010109)
Integrated MBA SEM VI
Batch 2016-21
I
CERTIFICATE
Institute’s Certificate
“It is to certify that this Dissertation Report Titled as “Mapping Consumer Behaviour and Attitude
towards Plastic Money with special reference to Ahmadabad city” is the bonafide work of
Mr.Mayur Purbiya (Enrollment No.201600510010101) & Mr.Rushi Rathod (Enrollment
No.201600510010109) , who carried out the research under my supervision.
______________________ _________________________________
Dr.Hiteksha Joshi Dr. Kavita Kshatriya
Faculty Guide HOD, Faculty of Management
II
PREFACE
As a part of Integrated MBA Curriculum and in order to gain practical knowledge in the field of
Management, we have prepared a report on “Mapping Consumer Behaviour and Attitude towards
Plastic Money with special reference to Ahmadabad city”. The Integrated MBA programme is a
well-structured and integrated course of business management at GLS University. The main
objective of preparing the Dissertation at IMBA level is to develop skills in students by providing
them an opportunity to relate practical experience with the theoretical concepts and principles of
business management.
The Dissertation has provided us the knowledge and experience for conducting a Research. We also
got to know the information about various Banking sector. We learned how to analysis the
responses of our survey and to interpret it in a way to find relevant findings that support our
research objectives. We also gained knowledge about banking sector and its growth in Worldwide
Market. Also come to know about the Banking services towards the consumers.
III
ACKNOWLEDGEMENT
Dissertation has provided us with an opportunity to gain information about perception of customers
towards the use of Plastic Money from different sectors. It was an experience of applying the
concepts as well as the knowledge learned during classrooms in real life practical situations.
Every Project Report is a culmination of a student’s endeavour to gain optimum experience during a
short valuable tenure. This Project is dedicated to all the people to whom we met, talked, took
guidance and learnt many things from them.
We take immense pleasure in taking this as an opportunity to express our deepest gratitude to all
those people whose guidance and support has made it possible for us to complete this project
successfully.
First and foremost, we would like to convey our heartiest thanks to GLS University for providing
us with the huge platform for doing this Dissertation.
We are thankful to our Dean, Faculty of Management, Dr. Hitesh Ruparel and our HOD,
Faculty of Management, Dr. Kavita Kshatriya for providing us constant support from the
institute. Our deepest gratitude to our project guides Prof. Hiteksha Joshi, Faculty Guide who in
spite of their busy schedules have provided us with their invaluable guidance, suggestions and
directions, which enabled us during all stages of this project.
Finally we would like to convey our deepest regard to everyone who has directly or indirectly
helped us in accomplishing this project.
IV
DECLARATION
We, Mayur Purbiya & Rushi Rathod hereby declare that the report for dissertation entitled
“Mapping Consumer Behaviour and Attitude towards Plastic Money with special reference to
Ahmadabad city” is a result of my own work and my indebtedness to other work
publications, references, if any, have been duly acknowledged.
Place: _____________________
Date: Mayur Purbiya
_____________________
Rushi Rathod
V
EXECUTIVE SUMMARY
Consumers today have a broad, and growing, range of choices when it comes to paying bills, paying
for purchases, and managing their cash flow. This ‘portfolio’ of payment mechanisms includes
traditional methods, such as cash, cheques, and credit cards, as well as more recent technologies such
as debit cards, online bill payment, automatic bill payment, and stored-value cards.
The objectives of this project are to study the awareness and use of Plastic money among the
customers. The study also focuses consumers’ preferences and attitude and the affecting factors
towards the use of Plastic money. The Study is been carried out by taking a survey of 140 respondents
by non probabilistic convenience sampling method from the city of Ahmadabad by using structured
questionnaire and interview technique. The findings of this project highlights that most of he
respondent owns Debit card rather than credit card. All the respondents who are having credit card also
have debit card, Hence it can be stated that almost every respondent owns debit card. The increasing
trend of online shopping & bill payment influences the use of Plastic Money; Majority of the
respondents says that most of their spending through Plastic money is for online shopping & Payment.
The most favoured factor affecting consumer preference towards plastic money is that Plastic money
eliminates the need of carrying cash and it is easy and convenient to pay through Plastic money. The
main reason for customers not using Plastic money is that it can’t be used for daily needs and many of
the retail outlets do not accept Plastic money. The project also shows that there is no association
between occupation and spending through Plastic money, But there is significant association between
age and spending through plastic money. Income of the respondent also has significant association
with spending through Plastic Money. Hence we can say that age and income can be influencing factor
in use of Plastic money.
In conclusion, this project finds out that the use debit card is increasing because of the trend of online
payment & shopping, still there are some issues related to use of Plastic money that needs to be
addressed.
VI
TABLE OF CONTENT
Sr. No. Particulars Page No.

Certificate II
Preface III
Acknowledgement IV
Declaration V
Executive Summary VI
1 Introduction of Banking Industry 1-8
1.1 Functions 2
1.2 History of Banking 3
1.3 Current Scenario 4
1.4 List of Banks in India 5
1.5 PESTEL Analysis for Banking Industry 7
2 Introduction of Plastic Money 9-13
2.1 Evaluation of Plastic Money 10
2.2 Types of Plastic Money 11
3 Literature reviews 14-22
4 Research Methodology 23-25
4.1 Problem Statement 24
4.2 Objectives of the Study 24
4.3 Scope of the Study 24
4.4 Research Design 24
4.5 Data Collection 24
4.6 Sampling Plan 24
4.7 Data Analysis tools 25
4.8 Expected Contributions 25
4.9 Limitations of the Study 25
5 Data Analysis & Interpretation 26-39
5.1 Questionnaire Analysis 27
5.2 Hypothesis 36
6 Findings 40
7 Coclusion 42
VII
8 Recommendations 44
Bibliography 46
Annexure 49
LIST OF TABLES
Sr. No. Particulars Page No.

1.4.1 Public sector Banks 5
1.4.2 Private sector Banks 6
5.1.1 Do You have any type of Plastic Money ? 27
5.1.2 Which type of Plastic money card do you own ? 27
5.1.3 How many Plastic money cards do you own ? 28
5.1.4 How often do you use your Plastic money card ? 28
5.1.5 Where do you spend most using Plastic money card ? 29
5.1.6 How many percentage of your income do you spend using Plastic money ? 30
5.1.7 Gender 32
5.1.8 Age 32
5.1.9 Educational Qualification 33
5.1.10 Occupation 33
5.1.11 Monthly Income 34
5.1.12 Reasons for preference towards Plastic Money 35
5.1.13 Reason for not using Plastic Money 36
5.2.1 Binomial Testing 36
5.2.2 Where do you spend most using your plastic money card? * 37
5.2.2
Occupation Cross tabulation
5.2.3 How many percentage of your income do you spend using plastic 38
5.2.3
money? * Monthly Income Cross tabulation
5.2.4 Age * Where do you spend most using your plastic money card? 39
5.2.4
Cross tabulation
VIII
CHAPTER 1:
Introduction
of
Banking Industry
The modern banking industry is a network of financial institutions licensed by the state to supply
banking services. The principal services offered relate to storing, transferring, extending credit
against, or managing the risks associated with holding various forms of wealth. The precise bundle of
financial services offered at any given time has varied considerably across institutions, across time,
and across jurisdictions, evolving in step with changes in the regulation of the industry, the
development of the economy, and advances in information and communications technologies.
1.1 FUNCTIONS
Banks as financial intermediaries are party to a transfer of funds from the ultimate saver to the
ultimate user of funds. Often, banks usefully alter the terms of the contractual arrangement as the
funds move through the transfer process in a manner that supports and promotes economic activity.
By issuing tradable claims (bank deposits) against itself, the bank can add a flexibility to the
circulating media of exchange in a manner that enhances the performance of the payments system.
These deposits may support the extension of personal credit to consumers (retail banking) or short-
term credit to nonfinancial businesses (commercial banking). If so, the bank aids the management of
liquidity, thus promoting household consumption and commerce. By facilitating the collection of
funds from a large number of small savers, each for a short period, the bank promotes the pooling of
funds to lend out in larger denominations for longer periods to those seeking to finance investment in
larger capital projects. Financing investment may take the form of underwriting issues of securities
(investment banking) or lending against real estate (mortgage banking). By specializing in the
assessment of risk, the bank can monitor borrower performance; by diversifying across investment
projects, the bank minimizes some types of risk and promotes the allocation of funds to those
endeavours with the greatest economic potential. By extending trade credit internationally (merchant
banking), the bank can facilitate international trade and commerce. As one last example, by lending
to other banks in times of external pressures on liquidity, the bank can manage core liquidity in the
financial system, thus potentially stabilizing prices and output (central banking).
To discharge its various functions, banks of all types manage highly leveraged portfolios of financial
assets and liabilities. Some of the most crucial questions for the banking industry and state regulators
centre on questions of how best to manage the portfolio of deposit banks, given the vital role of these
banks in extending commercial credit and enabling payments. With bank capital (roughly equal to the
net value of its assets after deduction of its liabilities) but a small fraction of total assets, bank
solvency is particularly vulnerable to credit risk, market risk, and liquidity risk. An increase in non-
performing loans, a drop in the market price of assets, or a shortage of cash reserves that forces a
distress sale of assets to meet depositors’ demand can each, if transpiring over a period of time too
short for the bank to manage the losses, threaten bank solvency.
2
1.2 HISTORY OF BANKING
The history of banking began with the first prototype banks which were the merchants of the world,
who made grain loans to farmers and traders who carried goods between cities. This was around 2000
BC in Assyria, India and Sumeria. Later, in ancient Greece and during the Roman Empire, lenders
based in temples made loans, while accepting deposits and performing the change of money.
Archaeology from this period in ancient China and India also shows evidence of money lending.
Many histories position the crucial historical development of a banking system to medieval and
Renaissance Italy and particularly the affluent cities of Florence, Venice and Genoa.
The Bardi and Peruzzi Families dominated banking in 14th century Florence, establishing branches
in many other parts of Europe. The most famous Italian bank was the Medici bank, established
by Giovanni Medici in 1397. The oldest bank still in existence is Banca Monte dei Paschi di Siena,
headquartered in Siena, Italy, which has been operating continuously since 1472.
The development of banking spread from northern Italy throughout the Holy Roman Empire, and in
the 15th and 16th century to northern Europe. This was followed by a number of important
innovations that took place in Amsterdam during the Dutch Republic in the 17th century, and in
London since the 18th century. During the 20th century, developments in telecommunications and
computing caused major changes to banks' operations and let banks dramatically increase in size and
geographic spread. The financial crisis of 2007–2008 caused many bank failures, including some of
the world's largest banks, and provoked much debate about bank regulation.
Banking in India, in the modern sense, originated in the last decade of the 18th century. Among the
first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829–32;
and the General Bank of India, established in 1786 but failed in 1791.
The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I). It originated and
started working as the Bank of Calcutta in mid-June 1806. In 1809, it was renamed as the Bank of
Bengal. This was one of the three banks founded by a presidency government, the other two were
the Bank of Bombay in 1840 and the Bank of Madras in 1843. The three banks were merged in 1921
to form the Imperial Bank of India, which upon India's independence, became the State Bank of
India in 1955. For many years the presidency banks had acted as quasi-central banks, as did their
successors, until the Reserve Bank of India was established in 1935, under the Reserve Bank of India
Act, 1934.
In 1960, the State Banks of India was given control of eight state-associated banks under the State
Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. In 1969
the Indian government nationalised 14 major private banks, one of the big bank was Bank of India. In
1980, 6 more private banks were nationalised. These nationalised banks are the majority of lenders in
3
the Indian economy. They dominate the banking sector because of their large size and widespread
networks. The Indian banking sector is broadly classified into scheduled and non-scheduled banks.
The scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act,
1934. The scheduled banks are further classified into: nationalised banks; State Bank of India and its
associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks. The
term commercial banks refers to both scheduled and non-scheduled commercial banks regulated
under the Banking Regulation Act, 1949.
Generally the supply, product range and reach of banking in India is fairly mature-even though reach
in rural India and to the poor still remains a challenge. The government has developed initiatives to
address this through the State Bank of India expanding its branch network and through the National
Bank for Agriculture and Rural Development (NABARD) with facilities like microfinance.
1.3 CURRENT SCENARIO
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and well-
regulated. The financial and economic conditions in the country are far superior to any other country
in the world. Credit, market and liquidity risk studies suggest that Indian banks are generally resilient
and have withstood the global downturn well. Indian banking industry has recently witnessed the roll
out of innovative banking models like payments and small finance banks. RBI’s new measures may
go a long way in helping the restructuring of the domestic banking industry.
The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS) being the only system at level 5 in the Faster Payments
Innovation Index (FPII). The Indian banking system consists of 27 public sector banks, 21 private
sector banks, 49 foreign banks, 56 regional rural banks, 1,562 urban cooperative banks and 94,384
rural cooperative banks, in addition to cooperative credit institutions. DuringFY07–18, deposits grew
at a CAGR of 11.66 per cent and reached US$ 1.6 trillion by FY17. Deposits at the end of Q2 FY19*
stood at Rs 118,501.82 billion (US$ 1,688.54 billion). Strong growth in savings amid rising
disposable income levels are the major factors influencing deposit growth. Access to banking system
has also improved over the years due to persistent government efforts to promote banking-technology
and promote expansion in unbanked and non-metropolitan regions. At the same time India’s banking
sector has remained stable despite global upheavals, thereby retaining pu blic confidence over the
years. Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY), have increased to Rs 863.21
billion (US$ 11.96 billion) and 336.6 million accounts were opened in India.
4
Total Banking Sector Assets (US$ Billion)
2500
134.12
125.52
2000
123.5 121.1 666.99
122.6 558.92
415.1 488.1
1500 104.5 369.9 Foreign Banks
325.9
Private Sector
1000
1421.4 1518.46 1557.04 Public Sector
1305 1347.9
500 1140.2
0
FY13 FY14 FY15 FY16 FY17 FY18
Source: Reserve Bank of India (RBI), Aranca Research
o FY13-18 saw growth in assets of banks across sectors. Total banking sector assets (including public,
private sector and foreign banks) have increased at a CAGR(Compound Annual Growth Rate) of 7.01
per cent to US$ 2.36 trillion during FY13–18.
o In FY18, total assets in public and private banking sector were US$ 1,557.04 billion and US$ 666.99
billion, respectively.
o Assets of public sector banks, which account for 66.03 per cent of the total banking assets (including
public, private sector and foreign banks).
o Private sector assets expanded at a CAGR of 12.68 per cent during FY13–18, while foreign banks
posted a growth of 4.25 per cent during FY13–18.
o Foreign banks assets reached Rs 8.65 trillion (US$ 134.12 billion) in FY18.
1.4 LIST OF BANKS IN INDIA

1.4.1 Public Sector Banks
Bank Name Established Headquarter Branches
Allahabad Bank 1865 Kolkata 3503
Andhra Bank 1923 Hyderabad 2803
Bank of Baroda 1908 Vadodra 5481
Canara Bank 1906 Bengaluru 6639
Central Bank of India 1911 Mumbai 4666
Dena Bank 1938 Mumbai 1874
IDBI Bank 1964 Mumbai 2896
Indian Bank 1907 Chennai 2851
5
Indian Overseas Bank 1937 Chennai 3400
Oriental Bank of Commerce 1943 Gurgaon 2355
Punjab and Sind Bank 1908 New Delhi 1554
Punjab National Bank 1894 New Delhi 7000
State Bank of India 1955 Mumbai 17170
Syndicate Bank 1925 Manipal 3500
UCO Bank 1943 Kolkata 4000
Union Bank of India 1919 Mumbai 4214
United Bank of India 1950 Kolkata 2054
Vijaya Bank 1931 Bangalore 2031
Source:Wikipedia
1.4.2 Private Sector Banks

Bank Name Established Headquarter Branches
Axis Bank 1993 Mumbai 3703
Bandhan Bank 2015 Kolkata 840
Catholic Syrian Bank 1920 Thrissur 426
City Union Bank 1904 Thanjavur 600
DCB Bank 1930 Mumbai 323
Dhanlaxmi Bank 1927 Thrissur 269
Federal Bank 1931 Aluva 1252
HDFC Bank 1994 Mumbai 4825
ICICI Bank 1994 Mumbai 4867
IDFC First Bank 2015 Mumbai 100
Induslnd Bank 1994 Mumbai 1004
Jammu & Kashmir Bank 1938 Srinagar 958
Karnataka bank 1924 Mangalore 835
Karur vysya Bank 1916 Karur 668
Kotak Mahindra Bank 2003 Mumbai 1369
Lakshmi Vilas bank 1926 Chennai 565
YES Bank 2001 Mumbai 1050
Source:Wkipedia
6
1.5 PESTLE ANALYSIS FOR THE BANKING INDUSTRY
The banking industry affects all countries. But it’s subservient to many factors, particularly to the
government and the economy. Banks are unable to behave independently and must provide services
based on specific laws that affect their growth and offerings. This PESTLE analysis highlights key
factors affecting the banking industry.
 Political factors
The banking sector looks all powerful — but it’s susceptible to a bigger giant: the government.
Government laws affect the state of the banking sector. The government can intervene in the matters
of banking whenever, leaving the industry susceptible to political influence. This includes corruption
amongst political parties, or specific legislative laws such as labor laws, trade restrictions, tariffs, and
political stability.
 Economic factors
The banking industry and the economy are tied. How income flows, whether the economy is
prospering or barely surviving during times of recession, affects how much capital banks can access.
Spending habits, and the reasons behind them, affect when customers borrow or spend funds at
banks. Additionally, when inflation skyrockets, the bank experiences the backlash. Inflation affects
currency and its value and causes instability. Foreign investors think twice before providing their
funds when a particular country’s currency value is high. Exchange rates also affect banks globally
stable currencies such as the US dollar impact other currencies, spending habits, and inflation rates in
other countries.
 Sociocultural factors
Cultural influences, such as buying behaviors and necessities, affect how people see and use banking
options. People turn to banks for advice and assistance for loans related to business, home, and
academics. Consumers seek knowledge from bank tellers regarding saving accounts, bank related
credit cards, investments, and more. Consumers desire a seamless banking experience. And
technology is developing to allow consumers to buy products easier, without requiring assistance
directly from banks.
 Technological factors
7
Once, it was expected to visit the local bank to make changes to financial accounts. But not anymore.
Technology is changing how consumers handle their funds. Many banks offer a mobile app to
witness accounts, transfer funds, and pay bills on smart phones. Smart phones can scan cheques, and
the bank can process it from their end, at their location. This change helps to save paper and the need
to drive directly to the branch to handle these affairs. Debit cards are also changing. Chips have been
implemented, requiring users to insert their card into debit machines rather than swiping them. Other
countries, such as Canada, have implemented a “tap” option — tapping the debit card onto the
device, requiring no pin, for a transaction to complete. These changes make it easier on the user to
make purchases without required intrusion from banks. Even banks themselves are utilizing
technology within the workplace. Telecommunicating through virtual meetings is being embraced. It
replaces the need for in-person meetings.
 Environmental factors
With the use of technology — particularly with mobile banking apps — the use for paper is being
reduced. Additionally, the need to drive directly to a branch to handle affairs is minimized as well.
Many issues are taken care of through mobile apps and online banking services. Consumers can
apply for credit cards online, buy cheques online, and have many of their banking questions answered
online or by phone. Thus, reducing individual environmental footprints.
 Legal factors
The banking industry follows strict laws regarding privacy, consumer laws, and trade structures to
confirm frameworks within the industry. Such structures are required for customers in the allocated
country and for international users.
 In conclusion…
The banking industry is held accountable by the government. What and how they offer services is
determined by politics and current governmental laws. Additionally, banks are at the whim of the
economy — inflation rates can devastate banking prospects as it affects the value of currency.
Technology is helping consumers spend and save money with readily available apps and online
services. For many daily transactions, it isn’t required for users to visit their branch anymore. This, in
turn, saves the use of paper and gas spent from driving to and from banking locations. Legally, banks
regard consumer laws, trade agreements, and privacy laws. They also must have top-notch cyber
security with the growing use of technology with banking transactions.
8
CHAPTER 2:
Introduction
of
Plastic Money
9
Banks are the financial institutions play a very crucial role in economic growth and development of a
country. The banks’ facilitation in trade, industrial development, agricultural development, capital
formation, credit creation, production, transfer of money, investment, saving, and their financial
advising services flourish the economic prosperity of country. Sound and efficient payment systems
through banks contribute towards smooth functioning of financial market. Banks, therefore, try to
bring in new forms of payments to make the payment system more secure and efficient. With the
advancement of technology, a dramatic shift in financial sector has been observed specially in the
banking sector in India. One of such remarkable additions in banking sector is “plastic money”. The
development of plastic money is probably one of the most significant phenomenon of the modern
banking era, making huge impact on the financial sector. Customers have showed their preference
over the usage of the plastic money generally over a period of time. Plastic money is an alternative to
the cash. The country is now adopting the concept of ‘Plastic Money’, and with this there are various
concerns that arises in the mind of consumer.
Traditional system of payment through cash is gradually being replaced by these debit and credit
cards. Because carrying wads of cash for a weekly or monthly shop is risky and not having enough
when you get to the till is embarrassing. Those days are gone when we had to carry loads of cash and
plan our shopping. To keep their money secure is an age old problem. Plastic money is just the
replacement of cash. Plastic money seems to be a more convenient and safe option to customers as
payment mode. In most of the developed countries, plastic money has replaced the paper currency on
a large scale and is now being adopted in developing countries gradually.
2.1 EVOLUTION OF PLASTIC MONEY IN INDIA

The partition of India after independence decimated the country’s economy and paralysed banking
activities for months. Keen to restore economic welfare in India, the government sought to create a
mixed economy as opposed to the laissez-faire system which had existed thus far. With this
intention, the RBI was nationalised with effect from January 1, 1949, under the Reserve Bank of
India (Transfer to Public Ownership) Act, 1948. A few months later, the Banking Regulation Act,
1949, was passed which empowered the RBI to “regulate, control, and inspect the banks in India.”
This law was eventually amended in 1965 to place cooperative banks under the purview of the RBI
for the first time.
The Indian banking sector underwent upheaval, Facing an economic crisis in 1991 — caused in
large part due to the USSR collapse and the Gulf War — India introduced liberalisation policies that
allowed the entry of private banks into the country. HSBC Bank, ICICI Bank, HDFC Bank, and
UTI Bank (now Axis Bank) ushered in a new era for the Indian banking sector. HSBC was the first
bank to set up an Automated Teller Machine (ATM) in India; it did so in Mumbai in 1987. Soon,
10
ATMs began spreading through the country and ‘plastic money’, in the form of debit cards and
credit cards, slowly began gaining popularity as well.
According to RBI statistics, there are currently over two lakh ATMs operated by 46 banks in India.
In September 2017 alone, they accounted for Rs 2,42,264 crores in transactions. Credit and debit
card users, meanwhile, accounted for Rs 74,094 crores in transactions at Point of Sale (PoS).
The use of plastic cards in India has no doubt in rise from last few years but there is still a
great potential left for the bankers to introduce more attractive services in order to lure the
customers on one side and increase their profits on the other.
.
2.2 TYPES OF PLASTIC MONEY
Plastic money is a term that is used predominantly in reference to the hard plastic cards we use every
day in place of actual bank notes. They can come in many different forms such as cash cards, credit
cards, debit cards, pre-paid cash cards and store cards.
 Credit Cards
A credit card is a card issued by a financial company which enables the cardholder to borrow
funds. The funds may be used as payment for goods and services. Issuance of credit cards has the
condition that the cardholder will pay back the original, borrowed amount plus any additional
agreed-upon charges. The credit company provider may also grant a line of credit (LOC) to the
cardholder which allows the holder to borrow money in the form of a cash advance. The issuer
pre-sets borrowing limits which have a basis on the individuals credit ratings.
 Debit Cards
A debit card is a plastic payment card that can be used instead of cash when making purchases. It
is similar to a credit card, but unlike a credit card, the money comes directly from the user's bank
account when performing a transaction. Unlike credit and charge cards, payments using a debit
11
card are immediately transferred from the cardholder's designated bank account, instead of them
paying the money back at a later date. Debit cards usually also allow for instant withdrawal of
cash, acting as an ATM card for withdrawing cash.
 Charge Cards
A charge card is a card that provides a payment method enabling the cardholder to
make purchases which are paid for by the card issuer, to whom the cardholder becomes indebted.
The cardholder is obligated to repay the debt to the card issuer in full by the due date, usually on a
monthly basis, or be subject to late fees and restrictions on further card use. It can also be a smart
card. Though the terms charge card and credit card are sometimes used interchangeably, they are
distinct protocols of financial transactions. Credit cards are revolving credit instruments that do not
need to be paid in full every month. There is no late fee payable so long as the minimum payment is
made at specified intervals (usually every thirty days). The balance of the account accrues interest,
which may be backdated to the date of initial purchase. Charge cards are typically issued without
spending limits, but credit cards usually have a specified credit limit that the cardholder may not
exceed.
 Customer card/store card
A store card is basically a credit card you can only use with one high street chain or group. Like
with a credit card, you can use a store card to buy things on credit and pay them off at the end of the
12
month. And just like with a credit card, you’ll be charged interest if you don’t repay in full. The
interest rate is usually higher than for a credit card.
 Prepaid card/gift card
A gift card (also known as gift certificate in North America, or gift voucher or gift token in the UK)
is a prepaid stored-value money card usually issued by a retaileror bank to be used as an alternative
to cash for purchases within a particular store or related businesses. Gift cards are also given out by
retailers and marketers as part of a promotion strategy, to entice the recipient to come in or return to
the store, and at times such cards are called cash cards. Gift cards are generally redeemable only for
purchases at the relevant retail premises and cannot be cashed out, and in some situations may be
subject to an expiry date or fees. Visa and MasterCard credit cards produce generic gift cards which
need not be redeemed at particular stores, and which are widely used for cashback marketing
strategies.
13
CHAPTER 3:
Literature
Reviews
14
(Subhani, Hasan, Osman, & Nayaz, 2011) The monetary rattle between consumption and
affordability slammed the household severaly for every now and then in all spheres of life from one
pole to another. This research is on ecomium on the charisma of Plastic money, its usability and
affordability while they are impacting on its preference to use. Friends and family have their
influence on the use of plastic money which is taken as a proxy of plastic money charisma while use
of plastic money along with spending adjustments and use of plastic money along with prediction of
future income are the proxies of its usability and affordability. The findings reveal that Plastic
money has charismatic appealas it has an influential effect which is often endorsed by the family
and friends. While, it is also investigated and cocluded that plastic money also has its usability and
affordability to its customers.
(Patil, 2014)Due to the technological revolution in financial sector, the payments in banking system
have undergone a tremendouschange. The number of innovative products for making payments has
developed after the privatization and globalization. The current study presents an overview of the
development of banking in the plastic card usage trends since there have been introduced in india.
The study also highlights the role of these cards as electronic payment tool to be used by customers
and discusses the penetration of these cards in replacement of cash and paper money. The findings
reveal that the use of Plastic card is increasing day by day for online payment. The factors for
adoption of plastic money over the cash and paper money are no hassles of carrying cash, Security
of money, Hassle free EMI’s, Easy to use, Personal loan on credit card.
(Bisht, Nair, Dubey , &Hajela, 2015)Keeping in mind the changing technology replacing the
traditional concept of paying through cash but by plastic money, this research was undertaken to
study the awareness and use of plastic money among the consumers. It was found that consumers
prefer plastic money over paper money and the major benefit that the card provides to the customer
is the convenience and accessibility. The major problems according to them is the increased
transactional cost and unnecessary formalities to procure the cards from the financial institutions.
They felt that the future of plastic money is bright and according to them, the next thing to come via
technology would be the use of Digital signature.
(Kaseke, 2012) The study investigates how consumer use cash or Plastic money in the
multicurrency period. The objective was to find out how easy consumer found plastic money to use.
Attitudes and opinions were extracted using a questionnaire as research instrument. It was found
that individual factors such as education level and gender had a bearing on the use of plastic money.
The study also found a number of problems that were encountered by consumers in relation to
security, speed and complexity of use. The research concluded that these issues will need to be
15
addressed and that plastic money may have advantages in certain situations but marketing efforts
should be concentrated on identifying niche opportunities or bundling appropriate service onto the
card to provide a relative advantage for increasingly discerning consumers.
(Giulio&Milani, 2013) This paper tries to contribute to the empirical literature on the European
consumer’s plastic money payment habits. The paper find that age, education, non-durable
consumption, regional variation and income are strong predictors of plastic money possession and
use. The households with a higher indebtedness level have a higher propensity to hold credit cards.
Technological improvements, observed in the last 15 years, do not significantly affect the marginal
probabilities to hold and use plastic money conditioned to the main socio-demographic factors.
(Rozani , Mohamed, &Yusuf, 2015)This conceptual paper provides a review of past studies that
highlight the development of Plastic money in society. This paper highlights issues in the usage of
plastic money for a local community. The review reveals that despite the encouraging adaption of
plastic money in the overall world economy, there are still some loopholes that needs to be covered.
Hence, several remedies, including intensive promotion to the public, are needed, especially if the
card is being introduced as a mechanism for transaction in particular community.
(Premlatha, Suresh, Kumar, &Venkatram, 2017) This study presents a summary of event of
banking within the Plastic card usage trends since plastic money are introduced. The findings shows
that use of Plastic money have many advantages as well as problems. The banking industry should
focus more to fix the problems faced by the consumers in using these plastic cards to enhance the
customer experience.
(Satam, 2015)This study was undertaken to understand the impacts of usage of plastic money on
Indian market banking trends. This study highlights the factors for adoption of plastic money and
the plastic money usage trends in the Indian banking sector. The study reveals that consumers in
Indian market are very sensible about the security of their money and information, consumers still
have perception than using plastic money has higher chances of frauds. The financial institutions
should take steps that can earn consumers trust by increasing the security level of transactions
through plastic money.
(Crujisen, Hernandez, &Jonker, 2015) The survey data shows that changing pattern of payment is
a challenging task, even when consumer is fallen in love with the Debit card, they find it hard to
divorce from cash. While seven out of ten consumers report to prefer using the debit card, only
seven out of twenty actually mostly pay by debit card. The likelihood that reported preferences and
16
actual behaviour does not match increase with income, education and age. Consumers with payment
in cash-intensive sectors, where the wide acceptance of the debit card is relatively recent
phenomenon, are more likely to overestimate debit card usage than other consumers. The findings
indicates that persistent habits are an important explanations why the substitution of cash by debit
cards took place at a slower pace than was expected.
(Kaur&Kaur, 2008) The current study presents an overview of the development of banking in
india from time to time specifically focused on the plastic card usage trends since these have been
introduced. The study also highlights the role of these cards as electronic payment tools to be used
by customers.
(Makanyeza&Mutambayashata, 2017) The purpose of this paper is to apply unified theory of

acceptance and use of technology to determine factors influencing acceptance and use of Plastic
money. Results shows that performance expectancy, effort expectancy, hedonic motivation and
habit all positively influenced behavioural intentions to adopt plastic money. Social influence,
facilitating conditions and perceived financial cost all did not have significant effect on behavioural
intentions to adopt plastic money.
(Vimala&Sarala, 2013) Plastic money is the new jargon frequently used in banking circles. The
present paper provides a platform to understand the performance and evaluation of banking
services, awareness level. Perception, usage of new innovative services especially with regards to
plastic money. The study focuses on the usage of debit card and credit card holder’s perception,
their awareness and their benefits. The findings helps to know the awareness and usage of plastic
money, finally it makes an attempt to offer few suggestions to enhance its usage and to provide
maximum benefits to cope up with the existing challenges in the wake of severe competitions and
ultimately providing better services to customers.
(Evans&Schmalensee, 2005) The definitive account of trillion dollar of payment card industry.
The Payment card business has evolved from its inception in the 1950s as a way to handle payment
for expense-account lunches into today’s complex, sprawling industry that drives trillions of dollars
in transactions volume each year. Paying with the plastic is the definitive source on an industry that
has revolutionized the way we borrow and spend.
(Tamilselvi & Karpagavalli, 2018) The development of Plastic money is one of the recent
phenomenon in the banking sector. It is one step forward towards cashless society. The objective is
to provide convenience and security. It eliminates cash transactions and protects from danger of
17
pick pocketing. There is usually interest free credit for 30 to 45 days. This paper attempts to find out
the satisfaction of customers with Plastic money with reference to Tirupur.
(Angel & McCabe, 2014) Individuals and Businesses makes numerous transaction every day.
They sometime have choice about what form of payment to make or accept, and the other time they
are effectively forced to use a particular form. Often there is an asymmetric power relationship
between payer and payee that raises the issue of whether one side unfairly exploits the other.
Payment tools as such are ethically neutral, but can be used in an ethical or unethical manner.
(Worthington, 1992) Only a small proportion of consumer borowings is provided by bank and
retailer credit cards. Discusses how recent changes in crdit card terms and societal attitudes may
further reduce that borrowings. Suggest debit card will become increasingly important as a mean of
payment. Plastic cards in general will be used more as paper transactions decline. Plastic card usage
with eventual reduction in the number of credit card issuers.
(Rifaya, Padmaja, Siddique, & Abbubakar, 2017) The current study makes an effort to know the
customer attitude towards usage of Plastic money. Technology has drastically changed all the
sectors including the financial sector, and the transaction in banking system has also undergone a
remarkable change. It is found that most of the respondents are using plastic money usually for
shopping and online purchases and also for purchasing expensive products. It was found that
customers prefer plastic money usually over paper money and the major benefit that the card
provides the convenience and accessibility.
(Haq & Tabrez, 2014)The use of plastic money in India is in strong surge. The distribution of
Plastic money has increased due to the fact that banking sector has become more aggressive. The
present paper makes an attempt to understand the after effects of recession of plastic money
industry and its impact on consumer preferences. The paper duly investigates the acceptability of
the cards among Indian consumers and the factors influencing the card choice.The results indicate
that customers are shifting from credit card to debit card over few years. The study also revealed
that for cost effective banking transactions, banks are now concentrating on making their customers
shift their debit card transactions from ATM to Point of Sale.
(Shah, Eisenkraft, Bettman, & Chartrand, 2015)The findings suggest that psychological pain can
influence how much individuals value their chosen product, how connected they feel to it, and how
committed they are over time. Our work demonstrates the potential downstream benefits of
increasing the psychological pain of payment for both organizations and individuals. Individuals are
18
more financially, psychologically, and behaviourally committed to an organization and value
products more when they pay with more painful forms of payment.
(Lotz & Zhang, 2013)This paper studies the choice of payment instruments in a simple model
where both money and credit can be used as means of payment. The study endogenize the
acceptability of credit by allowing retailers to invest in a costly record-keeping technology. The
framework captures the two-sided market interaction between consumers and retailers, leading to
strategic complementarities that can generate multiple steady-state equilibria. In addition, limited
commitment makes debt contracts self-enforcing and yields an endogenous upper bound on credit
use. The model can explain why the demand for credit declines as inflation falls, and how hold-up
problems in technological adoption can prevent retailers from accepting credit as consumers
continue to coordinate on cash usage. The study show that whenever money and credit coexist,
equilibrium is generically inefficient and optimal policy entails an inflation rate strictly above the
Friedman rule.
(Supriya, 2004) This paper examines the mismatch between the impersonality of electronic money
on the one hand and customers’ desire to have a personal banking relationship on the other. This
gap is illustrated by a critical appraisal of literature relating to the sociology of money, the adoption
of information and communication technologies and self-service technologies. The paper argues
that bank marketing professionals adopt an activity-centred social marketing strategy. This strategy
places customers and their activities at the center to help ensure a fit between payment activities,
services, and values relating to money within different cultural contexts. The strategy has
managerial implications, for when payments services are tracked according to customers and
activities, the data required is different from data generated by following customer segments and
products. An activity-centered social marketing strategy has the potential to increase trust in banks
and halt the shift of financial relationships to intermediaries such as brokers and financial planners.
(Sumi & Safiullah, 2014)Due to the technological revolution in financial sector, the transactions in
banking system have undergone a tremendous change. Customers have showed their preference
over the usage of the plastic money generally over a period of time. Plastic money is an alternative
to the cash or the standard ‘money’. Plastic money refers to the credit cards or the debit cards that is
used to make purchases .Various other types of plastic cards provided by banks in Bangladesh are
ATM cards, Smart cards. The current study presents an overview of the development of banking in
the plastic cards usage trends since these have been introduced in Bangladeshi banking sector. The
study also highlights the problems faced by the users of these cards as electronic payment toolThe
factors for adoption of plastic money in replacement of cash and paper money have been identified
19
which shows the preference of the customers for plastic cards over the cash and paper money. Some
future plans made by various banks and institutions for avoiding the frauds arisen due to the credit
and debit cards are also been discussed in a way that it depicts the picture of its future growth and
prospects in Bangladesh.
(Sharma, Karim, & Jain, 2015)Over the past few decades, a small fragment of plastic has
revolutionized the way consumers pay. Rise in disposable income, introduction of new products and
services, increased travel and growth of the entertainment sector has had an impact on the use of
plastic money. With the recent reforms in the banking domain, the marketing of financial products
has become quite aggressive, creating a need for maneuvering the marketing efforts. The present
paper makes an attempt to understand the consumer preferences and attitude towards the use of
plastic money in India. The paper duly investigates the acceptability of the cards among the Indian
consumers and the factors affecting it. The study has clearly highlighted the advantage of instant
transaction as one of the major factors favouring the use of plastic money over real money by the
population today. It has already been highlighted by the study of existing literature that convenience
of not carrying cash and ease of transaction is one of the major psychologically influencing factors
that encourage the use of plastic money instead of real money.
(Brown & Plache, 2001)credit cards are one of the great innovations of the twentieth century.' On
par with the microprocessor and the cell phone, credit cards and the larger family of payment cards
have transformed how people live. Payment cards provide a safe, secure, and convenient alternative
to cash and checks, reducing the cost and risk of payment. Since the introduction of the first general
purpose credit cards' in 1958, the ownership and usage of credit cards have extended to consumers
of nearly all socioeconomic groups. As of 2001, 76.2 percent of U.S. households held at least one
general purpose credit card, and such credit cards accounted for nearly 20 percent of U.S. personal
consumption expenditures.'
(Jain, 2014)The economic development of a country is dependent on how sound its financial
system is. The financial activity in India has observed increased amount of activity in the r ecent
time. One of the areas which have seen increased focus is cashless transactions ans plastic money..
(Hogarth, Kolodinsky, & Gabor, 2008)Using data from the Surveys of Consumers, this paper
examines the portfolio of payment choices that different groups of consumers use and identifies the
socio-economic, demographic, and attitudinal characteristics of groups of consumers that fall within
those choice sets. We find that younger, married, more highly educated, higher income, higher asset
households were more likely to adopt a broad range of electronic payment choices. We also find
20
that consumers’ attitudes and perceptions of Plastic money, in terms of security and privacy,
convenience, and familiarity and ease of use, were significant correlates of payment choices.
(Matiru, 2007)The objective of this study was to identify what challenges the industry is facing on
the usage of plastic cards, identify the determinants of growth in usage of plastic cards in Kenya and
document the current trends on use of plastic cards in Kenya. The study found out that marketing is
limited in that the products for example credit card are not a mass product. Vetting of new entrant in
credit cards is very restrictive. Different banks who are majority issuers of these cards tend to
segment their market and thus joint marketing promotions are of little help. Why customers do not
apply for cards; they fear debt, some are risk averse, for debit cards- fear of technology, fear of
fraud for both credit and debit through lost cards, carjacking.
(Bama & Gunasundari, 2016)Today it is impossible to imagine modern bank operations,

commercial transactions and other payments without using the plastic cards. Plastic currency is now
gradually becoming the norm across the globe as more and more developed countries are opting for
plastic compared to paper as there are several inherent advantages. The growing incursion of smart
phones has made technology applications much more accessible to users. The Government‟s also
move forward for a “Digital India” and its focus on growing electronic payments is significant
drivers of growth in replacing physical payments with technology-backed solutions. India is at the
cusp of a tectonic shift towards electronic money from traditional cash. for instance the Pradhan
Mantri Jan DhanYojana (PMJDY), is slowly building recognition among people to move from
paper to electronic money. The PMJDY alone has seeded over 150 million Rupay cards in the last
year, in addition to the 400 million debit cards already in circulation. There is still emergence for
significant increase in the usage of debit cards in the years to come as card. This paper focus on the
challenges and future prospects of plastic money in India.
(Bradford, 2006)Payments through plastic card may be positioned for a meaningful level of
adoption in the United States. While there are yet challenges to overcome, a significant portion of
the population owns a mobile device, acceptance of previous emerging payment methods continues
to increase, and there are a number of interested parties and available technologies that address a
variety of mobile payment needs. As with other emerging payment methods, it will be interesting to
see how the Plastic money and banking market evolves.
(Malagi & Shelar, 2017)Technology has taken over the world. The World without Technology is
the world without life. Use of Plastic Money is one of the areas that technology has been of great
use in shopping Industry. Customers are prone to save their time by using plastic money. This is the
21
reason why the shopping industry has to focus on Plastic Money Transactions than Cash
Transactions. In the study Perceptions and Attitudes were sought and were extracted using a
questionnaire as research instrument. It was found that individual factors such as Gender, Age, and
Marital Status had a bearing on the use of plastic money. The Research concludes that Plastic
Money is more convenient for carrying & for payment.
(Bazmi, Nazir, Raza, & Javed, 2015)Basic objectives of the study were to find out the practicing
trend of Plastic money transactions versus paper money based transactions in consumer individual
banking. Seeing that now consumer range is transporting in order to plastic-type money, electronic
consumer banking is attaining more importance through the moving time. The electronic consumer
banking solutions offered by financial institutions contain AT M, charge cards, resources move,
check repayment, resources put in, harmony enquiry, utility bills repayment, record connected with
consideration, remittance, draft, pay order, phone consumer banking, cellular consumer banking,
and so forth. The customers tend to be more satisfied with solutions.
(Nayak, Kumar, & Agarwal, 2008) This paper highlights factors influencing the selection of
credit cards among consumers. The major factors points out by them are service offers, promotional
offers, interest benefits, cash benefits, ease of payments, payment charges, card benefits and time
benefit.
(Goya, 2006) This paper focuses on understanding how consumers perceive and consider service
product features (core benefit, facilitating services and supplementing services) in pre-purchase
evaluation and to understand the position of supplementary services at product levels. The data
analysis indicated that consumers consider service product features during prepurchase evaluation
of credit cards and respondents find it easy to make s purchase decision on the basis of
supplementary services. Responses revealed that existing supplementary service elements are
perceived more of expected features than augmented features of credit cards.
22
CHAPTER 4:
Research
Methodology
23
4.1 Problem Statement
The need for the study is to know about awareness and use of Plastic Money among customers.
The study also focuses on consumers’ preferences and attitude towards the use of plastic and the
factors affecting consumers preference towards the use of Plastic Money.
4.2 Objectives of Study
o To study the awareness and use of plastic money among the consumers
o To study Consumer preference towards Plastic Money
o To understand the factors/reasons influencing the preference of consumers for use of
plastic money
4.3 Scope of the Study
o AREA: Ahmadabad City
o GENDER: Male and Female
o AGE: Above 18
4.4 Research Design
We have used Descriptive research design in this research. The study was more Structured and
formal in nature. The objective is to provide a comprehensive and detailed explanation under
the study.
4.5 Data Collection
Primary method of data collection:
o We have collected our data by the primary sources through Questionnaire.

o Questionnaires were filled by 140 respondents.
Secondary method of data collection:
o We have also used secondary sources such as Articles, Magazines, News Papers and some
online articles also.
4.6 Sampling Plan
o Population:
All the users of plastic money in Ahmedabad city.
o Sampling Units:
All the respondents who are using any form of Plastic Money.We havecollected responses
from 140 different users from Ahmedabad city.
o Sampling Size:
We have collect responses from 140 Plastic money users.
24
o Sampling Method:
Sample would be selected by non-random convenience sampling method for data collection.
o Data Collection Instrument
Questionnaire
4.7 Data Analysis Tools
SPSS Software, Microsoft Excel, Bar charts, Pie Charts, etc.
4.8 Expected Contribution
The results of the study will be useful to banking industries for improving services related to Plastic
Money, and solve problems related with it.
4.9 Limitations of the study
o Time period for research is limited.
o The research would be limited to Ahmadabad City only.
o Respondents might be biased in giving response.
o Study would be limited to the sample size of 140 respondents only.
25
CHAPTER 5:
Data Analysis
&
Interpretation
26
5.1 QUESTIONNAIRE ANALYSIS
5.1.1 Do You have any type of Plastic Money ?
PERCENTAGE FREQUENCY
Do You have any type of YES 78.57% 110
Plastic Money ? NO 21.43% 30
TOTAL 100% 140
Do you have any type of Plastic

Money?
21.43%
YES
78.57%
NO
o The chart and table above shows the data whether the respondents have any type of Plastic Money
or not.
o Out of 140 respondents 78.57% means 110 respondents owns Plastic Money and remaining
21.43% means 30 respondents do not owns any type of Plastic Money.
5.1.2 Which type of plastic money do you own?

Credit Card 0 0
Which type of plastic Debit Card 78.18% 86
money do you own? Both 21.82% 24
TOTAL 100% 110
Which type of plastic money do you

own?
0
21.82% Credit Card
78.18% Debit Card
Both
27
o The chart and table shows that out 78.18% of 110 respondents, which means 86 respondents only
owns Debit Card.
o Other remaining 21.82% respondents owns both Credit & Debit card.
5.1.3 How many plastic cards do you own?
1 42.7% 47
How many plastic 2 39.1% 43
cards do you own? 3 14.5% 16
More than 3 3.6% 4
TOTAL 100% 110
How many plastic cards do you own?

3.60%
14.50%
42.70% 1
2
39.10%
3
More than 3
o The chart and table above shows the number of Plastic Money cards owned by the respondents.
o 42.70% which means 47 respondents out of 110 only ownes 1 plastic Money card.
o 39.1% respondents which means 43 out of 110 repondents ownes 2 Plastic Money cards, And only
3.6% which means only 4 respondents only more than 3 cards.
5.1.4 How often do you use plastic cards?

Daily 2.73% 3
How often do you use Weekly 45.45% 50
plastic cards? Monthly 35.45% 39
Rarely 16.36% 18
TOTAL 100% 110
28
o
How often do you use plastic cards?
16.36% 2.73%
Daily
45.45% Weekly
35.45%
Monthly
Rarely
o The table and chart shows how often respondents use their Plastic Money card.
o Majority of the respondent which are 45.45%(50 respondents) uses their card weekly, 35.45%(39
respondents) uses their card monthly.
o Only 2.73% of respondents which means 3 out of 110 respondents uses their card daily.
5.1.5 Where do you spend most using your plastic money card?
Shopping/SuperMarket 22.73% 25
Restraunt 1.82% 2
Online Payment 36.36% 40
Where do you spend Entertainment 1.82% 2
most using your Hotel/Travel Ticket Booking 0.91% 1
plastic money card? Health/Beauty/Spa 0% 0
Home Appliances 8.18% 9
Others 28.18% 31
TOTAL 100% 110
Where do you spend most using your plastic

money card?
Shopping/SuperMarket
22.73% Restraunt
28.18% 1.82%
Online Payment
Entertainment
8.18%
Hotel/Travel Ticket Booking
36.36%
Home Appliances
Others
0.91%
Health/Beauty/Spa
1.82%
29
o The chart and table above shows where respondents use their card mostly.
o Most of the respondents uses their cards for online payment, shopping or supermarket, cash
withdraw,etc.
o Majority of respondents , 36.36%(40 respondents) uses their card mostly for online payment.
o Respondents who have chosen the other option uses their card for cash withdrawal purpose. Out
of 110 respondents 31 use their card for cash withdraw mostly.
o Some of the respondents also uses their card for shopping purpose at Super markets, 22.73% of
respondents which means 25 out of 110 respondents uses their card mostly for shopping.
5.1.6 How many percentage of your income do you spend using plastic money?
How many 0-10 21.82% 24
percentage of your 11-20 40% 44
income do you 21-30 29.09% 32
spend using plastic More than 30 9.09% 10
money? Total 100% 110
How many percentage of your income do you

spend using plastic money?
9.09% 21.82%
29.09% 0-10
11-20
40%
21-30
More than 30
o The chart and table shows the percentage of income that respondents spend using Plastic Money.
o 40% of the respondents which means 44 respondents out of 110 spends 11-20% of their income
using Plastic Money. 29.09% means 32 out of 110 respondents spends 21-30% of their income
using Plastic Money.
o Only 9.09% of respondents which means 10 respondents uses more than 30% of their income using
Plastic Money.
30
Reasons for preference towards Plastic Money
Reasons for preference towards Plastic Money

Strongly Disagree Disagree Neutral Agree Strongly Agree
75
59
46 49 46
37 37
3028 27 25 26
19 14 1921 19
13 12 13
0 2 3 2 1 2 1 1 3 4
More More secure Anytime and Tracking Elemenates Extensive

convinient way of anywhere transactions the need of benefits like
and easy way payment access becomes easy carrying cash cashbacks and
of payment discounts
o The chart shows the different reasons for consumer preferences towards Plastic Money.
o Most common reason affecting preference towards Plastic money is that it eliminates the need of
carrying cash, Because it has the highest value of 75.
o Extensive benefits like cashbackls and discounts is the least common reason for preference towards
plastic money, it has the lowest mean value of 19.
Reasons for not using Plastic Money
Reasons for not using Plastic Money

Strongly Disagree Disagree Neutral Agree Strongly Agree
17 16 16
14 14
7 8
6 5 4 5 6 5 5
4 4 4 3 4
2 2 1 1 2
0
Lack of trust Non-acceptance Can't be used Service charges Higher chances

at retail outlets for daily needs of frauds
o The chart and table shows different reasons for consumers not using Plastic Money.
o The most common reason for not using Plastic Money is that it can’t be used for daily needs,
because it has the highest value of 16. The least common reason for not using Plastic money is
that Consumers have lack of trust, it has value of 2.
31
5.1.7 GENDER
FEMALE 23.02% 32
MALE 76.98% 107
GENDER
TOTAL 100% 140
GENDER
23.02%
FEMALE
MALE
76.98%
o The chart and table above shows the gender of respondents.

o 76.98% of respondents, which means 107 out 140 respondents are male and other remaining
23.02% which means 32 respondents are Female.
5.1.8 AGE
18-25 36.69% 51
26-30 32.37% 45
31-45 23.74% 33
AGE
45-60 7.19% 10
Above 60 0.01% 1
TOTAL 100% 140
AGE
7.19%
23.74% 18-25
36.69% 26-30
31-45
32.37%
45-60
Above 60
32
o The chart and table above shows the age group of respondents.
o Majority of respondents, which is 36.69% which means 51 respondents are from age group of 18-25.
o 32.37%(45 respondents) have age between 26-30.
o 33 respondents which means 23.74% have age between 31-45.
5.1.9 Educational Qualification

Higher Secondary 17.99% 25
Under Graduate 43.88% 61
Post Graduate 36.69% 51
Educational Doctorate 1.44% 3
Qualification TOTAL 100% 140
Educational Qualification
Higher Secondary Under Graduate Post Graduate Doctorate
1.44% 17.99%
36.69%
43.88%
o The chart and table shows the educational qualification of 140 respondents.
o 17.99%(25 respondents) have completed higher secondary,43.88% (61 respondents) are under
graduate,36.69%(51 respondents) are post graduate.
5.1.10 Occupation
Businessmen 12.23% 17
Professional 17.27% 24
Salaried 51.80% 72
Occupation Student 11.51% 16
House wife 7.19% 10
Others 0% 0
TOTAL 100% 140
33
Occupation
7% 12%
12% Businessmen
17% Professional
Salaried
52%
Student
housewife
o The chart and table above shows the occupation of respondents.

o 51.8%(72 respondents) are salaried persons, 17.27%(24 respondents) are professionals.
o 12.23%(17 respondents) are businessmen,other remaining responses consists students and
housewives.
5.1.11 Monthly Income

Less than 10000 30.94% 43
11000-25000 46.04% 64
Monthly Income 26000-50000 20.14% 28
Above 50000 2.88% 4
100% 140
Monthly Income
2.88%
20.14% 30.94% Less than 10000

11000-25000
46.04% 26000-50000
Above 50000
 The chart and table above shows Monthly Income of respondents.

 46.04%(64 respondents) have monthly income between 11000-25000.
 30.94%(43 respondents) have monthly income less than 10000.
 Only 2.88% (4 respondents) have income more than 50000.
34
 MEAN SCORE
5.1.12 Reason for preference towards Plastic Money

Strongly Strongly
Disagree Neutral Agree Mean
Disagree Agree
More convenient and
0 2 13 49 46 4.2636
easy method of payment
More secure way of
3 12 30 28 37 3.7636
payment
Anytime & Anywhere
0 1 14 49 46 4.2727
access
Tracking transactions
0 1 13 59 37 4.2000
becomes easy
Eliminates the need of
1 3 4 27 75 4.5636
carrying cash
Extensive benefits like
25 19 21 26 19 2.9545
cash backs and discounts
o The table above shows the mean values of factors affecting preferences of respondents towards
Plastic money.
o Plastic money eliminates the need of carrying cash is the most favored reason, because it has the
highest mean value of 4.5636.
o The lowest mean value is 2.9545; it shows that the factor of extensive benefits like cash backs and
discount is the least favored.
o Anytime & anywhere access is the second most favored reason with the mean value of 4.2727.
35
5.1.13 Reasons for not using Plastic money
Strongly Strongly
Disagree Neutral Agree Mean
Disagree Agree
4 17 4 4 2 2.4516
Lack of trust
Non-acceptance at
0 2 6 16 7 3.9032
retail stores
Can’t be used for daily

1 5 4 5 16 3.9677
needs
1 6 14 8 2 3.1290
Service charges
Higher Chances of
3 5 5 14 4 3.3548
frauds
o The table above shows the mean values of reasons of not using Plastic Money.
o Plastic money can’t be used for daily needs is the most favored reason, because it has the highest
mean value of 3.9677.
o The lowest mean value is 2.4516; it shows that the lack of trust is the least favored reason.
o Non-acceptance at retail stores is the second most favored reason with the mean value of 3.9032.
5.2 HYPOTHESIS
5.2.1 Binomial Testing
H0 : Respondent does not own any type of Plastic Money.

H1 : Respondent owns Plastic Money.
5.2.1 Binomial Test
Category N Observed Prop. Test Prop. Exact Sig. (2-

tailed)
Group 1 Yes 110 .79 .50 .000
Do you have any type of
Group 2 No 30 .21
plastic money?
Total 140 1.00
H0 is rejected. Because most of the respondents owns Plastic Money.
36
5.2.2 Chi-Square Testing
1) Occupation * Where do respondent spend most using Plastic Money?

H0 :There is no association between occupation and most spending of respondent through
Plastic Money.
H1 : There is association between occupation and most spending of respondent through Plastic
Money.
5.2.2 Where do you spend most using your plastic money card? * Occupation Crosstabulation
Count
Occupation Total
Businessmen Professional Salaried Student Housewife
Shopping/ Supermarket 5 5 11 4 0 25
Restaurant 1 0 0 1 0 2
Online Payment 3 6 23 8 0 40
Where do you spend
Entertainment 0 0 2 0 0 2
most using your
plastic money card? Hotel/ Travel/ Ticket
0 0 1 0 0 1
booking
Home Appliances 3 4 1 0 0 8
Others 4 5 19 0 3 31
Total 16 20 57 13 3 109
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 35.894a 24 .056

Likelihood Ratio 39.945 24 .022
Linear-by-Linear Association .129 1 .720
N of Valid Cases 109
a. 29 cells (82.9%) have expected count less than 5. The minimum expected count is .03.
H0 is accepted, it means there is no association between occupation and most spending of

respondents using Plastic Money.
37
2) Monthly Income * Percentage of income spent using Plastic Money.
H0 : There is no association between Monthly income and Percentage of Income spent using
Plastic Money.
H1 : There is association between Monthly income and Percentage of Income spent using
Plastic Money.
5.2.3 How many percentage of your income do you spend using plastic money? * Monthly Income Crosstabulation
Count
Monthly Income Total
Less than10000 11000-25000 26000-50000 More than

50000
0-10 13 8 2 1 24
How many percentage of
your income do you spend 11-20 11 25 7 1 44
using plastic money? 21-30 7 13 10 1 31

More than 30 0 3 6 1 10
Total 31 49 25 4 109
Chi-Square Tests
Value df Asymp. Sig. (2-sided)

Linear-by-Linear Association 14.794 1 .000
a. 7 cells (43.8%) have expected count less than 5. The minimum expected count is .37.
H0 is rejected, it means there is association between income and percentage of monthly income spent
through Plastic Money.
38
3) Age group * Where do respondent spend most using Plastic Money?
H0 : There is no association between age and most spending through Plastic Money.
H1 : There is association between age and most spending through Plastic Money.
Where do you spend most using your plastic money card? * Age Crosstabulation
Count
Age Total
18-25 26-30 31-45 45-60
Shopping/ Supermarket 12 8 5 0 25
Restaurant 2 0 0 0 2
Where do you spend most Online Payment 20 12 7 1 40
using your plastic money Entertainment 2 0 0 0 2

card? Hotel/ Travel/ Ticket booking 0 1 0 0 1
Home Appliances 0 4 4 0 8
Others 7 8 11 5 31
Total 43 33 27 6 109
Chi-Square Tests
Value df Asymp. Sig. (2-

sided)

Linear-by-Linear
15.246 1 .000
Association
a. 19 cells (67.9%) have expected count less than 5. The minimum

expected count is .06.
H0 is rejected, which means there is association between age and most spending through Plastic Money.
39
CHAPTER 6:
Findings
40
 78.57 % of the respondents are using Plastic Money, only 21.43% respondents are not using
Plastic Money.
 78.18% of the respondents are using Debit card, other remaining 21.82% respondents owns both
credit and debit card. It has been found that all the respondents having credit card also have debit
card.
 42.7% of the respondents only owns one plastic money card, 39.10% are having two plastic
money cards. Only 3.60% of respondents are having cards more than three.
 45.45% of the respondents uses their card weekly, 35.45% of respondents uses their card monthly.
Only 2.73% respondents are using their card daily.
 36.36% of the responses mostly spend their money for online shopping and billing, around
28.18% respondents are using Plastic money for other purposes, the other purpose means cash
withdraw from ATM.
 40% of the respondents are spending around 11-20 % of their monthly income using Plastic
money. Only 9.09% respondents are spending more than 30% of their monthly income.
 The most favoring reason for preference towards use of Plastic Money is that eliminates the need
of carrying cash with highest mean value of 4.5636. The least favored reason for using plastic is
that it provides extensive benefits like cash backs and discounts with lowest frequency of 2.9545.
 The most favored reason for not using Plastic Money is that it can’t be used for daily needs with
highest frequency of 16, The least favored reason for not using Most of the Plastic money is that
respondents are lack of trust with lowest frequency of 2
 The Chi-square test between occupation and where do respondent spend mostly through Plastic
Money say that there is no significant association between these two variables.
 The Chi-square test between monthly income and percentage of income spent through Plastic
money shows that there is significant association between these two variables.
 The Chi-square test between age and where do respondent spent mostly using Plastic money
shows that there is significant association between these two variables.
41
CHAPTER 7:
Conclusion
42
This research projects shows that majority of the consumers’ uses and prefers Plastic money. Most
of the consumers prefer using Debit card over credit card and they mostly use it for online payment,
shopping at online website and supermarkets. The consumers’ prefers Plastic money because it
eliminates the need of carrying cash and payment using Plastic money is convenient and easy.
Consumers also strongly agree that there are some problems related to plastic money. It can’t be
used for daily needs and in country like India many retail outlets do not accept Plastic money. The
other factors influencing the use of Plastic money can be age and income of the consumer.
Occupation of the customer does not have any significant influence on use of Plastic Money.
The project highlights some of the advantages like more convenient, easy and secure way of
payment; anytime & anywhere access and record keeping of transactions, etc. The project also
shows disadvantages of plastic money like it can’t be used for daily need, service charges and
higher chances of frauds. Still we can say that there are more advantages of Plastic money than its
disadvantages. These disadvantages needs to be addressed.
43
CHAPTER 8:
Suggestions
44
 Recommendations for Banks
o It has been found that people avoid using Plastic money because many of the retail outlets
do not accept payment through Plastic money; and it can’t be used for daily needs. Banks
should try to offer PoS machines to the retail outlets, so that they can also be able to accept
payment through Plastic Money.
o Safety and privacy measures should be efficient so as to keep customers money safe. An
assurance of safety can attract more customers for using plastic money.
o The chargers levied on using plastic money should be kept to the minimum so that people
can use plastic without any hesitation.
 Recommendations for Government
o In order to attract more and more transaction through plastic money; government should
provide some tax concession to users of plastic money.
o Doing away with the convenience fee charged by the government for various payment and
utilities, reducing the merchant discount rate on card transaction, lowering mobile payment
costs, increasing annual reportable limit of credit card transaction and more. Apart from this
benefit could be providing to merchant for accepting electronic payment.
o The government should take initiative to advice bank to not charge any transaction cost but
instead offer cash back reward to users on digital payment.
o No service charge or minimal service charge should be levied on transaction through plastic
money.
o To encourage digital transaction; the limit that is kept in e-wallets should be increased.
45
Bibliography
46
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48
Annexure
49
Questionnaire
1. Do you have any type of Plastic Money ( Debit card, Credit card, etc)?
If your answer is “NO”, go to Question 8.
A. YES [ ]
B. NO [ ]
2. Which type of Plastic money do you own?

A. Credit card [ ] B. Debit card [ ]
C. Both [ ] D. Other [ ]
3. How many plastic cards you own?

A. One [ ] B. Two [ ]
C. Three [ ] D. More than three [ ]
4. How often do you use your Plastic Money card ?

A. Daily [ ] B. Weekly [ ]
C. Monthly [ ] D. Rarely [ ]
5.Where do you spend most using Plastic money card ?

A. Shopping/Super Market [ ]
B. Restraunt [ ]
C. Online Payment [ ]
D. Entertainment [ ]
E. Hotel/Travel/Ticket booking [ ]
F. Health/Beauty/Spa [ ]
G. Home Appliances [ ]
H. Other:_____________________________
6. How many percentage of your income do you spend using Plastic money ?
A. 0-10 [ ]
B. 11-20 [ ]
C. 21-30 [ ]
D. More than 30 [ ]
50
7. Rate the following reasons for preferences towards Plastic money.
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
More convenient and

easy method of payment
More secure way of

payment
Anytime & Anywhere

access
Tracking transactions
becomes easy
Eliminates the need of

carrying cash
Extensive benefits like

cash backs and discounts
8. Rate the following reasons for not using Plastic money.
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
Lack of trust
Non-acceptance at retail
stores
Can’t be used for daily
needs
Service charges
Higher Chances of
frauds
51
Personal Information
o Name : _______________________
o Gender
A. FEMALE [ ]
B. MALE [ ]
o Educational Qualification
A. Higher secondary complete [ ]
B. Under Graduate [ ]
C. Post Graduate [ ]
D. Doctorate [ ]
o Occupation
A. Businessmen [ ]
B. Professional [ ]
C. Salaried [ ]
D. Student [ ]
E. Housewife [ ]
F. Others_________________
o Monthly Income
A. Less than 10000
B. 11000 – 25000
C. 26000 – 50000
D. More than 50000
o Mobile Number ______________________
52

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Dissertation

“Mapping Consumer Behaviour and Attitude towards Plastic Money

In Partial Fulfilment of the award for the degree of

Integrated Masters of Business Administration

Under the Guidance of:

Dr. Hiteksha Joshi

Mayur Purbiya (Enrollment No.201600510010101)

Rushi Rathod (Enrollment No.201600510010109)

Integrated MBA SEM VI

Dr.Hiteksha Joshi Dr. Kavita Kshatriya

Faculty Guide HOD, Faculty of Management

publications, references, if any, have been duly acknowledged.

Date: Mayur Purbiya

Sr. No. Particulars Page No.

Sr. No. Particulars Page No.

1.3 CURRENT SCENARIO

Source: Reserve Bank of India (RBI), Aranca Research

1.4 LIST OF BANKS IN INDIA

1.4.2 Private Sector Banks

2.1 EVOLUTION OF PLASTIC MONEY IN INDIA

 Customer card/store card

 Prepaid card/gift card

(Makanyeza&Mutambayashata, 2017) The purpose of this paper is to apply unified theory of

(Bama & Gunasundari, 2016)Today it is impossible to imagine modern bank operations,

Primary method of data collection:

o We have collected our data by the primary sources through Questionnaire.

Secondary method of data collection:

4.6 Sampling Plan

Do you have any type of Plastic

5.1.2 Which type of plastic money do you own?

Which type of plastic money do you

5.1.3 How many plastic cards do you own?

How many plastic cards do you own?

5.1.4 How often do you use plastic cards?

Where do you spend most using your plastic

How many percentage of your income do you

Reasons for preference towards Plastic Money

More More secure Anytime and Tracking Elemenates Extensive

Reasons for not using Plastic Money

Reasons for not using Plastic Money

Lack of trust Non-acceptance Can't be used Service charges Higher chances

o The chart and table above shows the gender of respondents.

5.1.9 Educational Qualification

o The chart and table above shows the occupation of respondents.

5.1.11 Monthly Income

20.14% 30.94% Less than 10000

 The chart and table above shows Monthly Income of respondents.

5.1.12 Reason for preference towards Plastic Money

Can’t be used for daily

5.2.1 Binomial Testing

H0 : Respondent does not own any type of Plastic Money.

5.2.1 Binomial Test

Category N Observed Prop. Test Prop. Exact Sig. (2-

H0 is rejected. Because most of the respondents owns Plastic Money.

1) Occupation * Where do respondent spend most using Plastic Money?

Businessmen Professional Salaried Student Housewife

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 35.894a 24 .056

Linear-by-Linear Association .129 1 .720