International Journal of Research Publication and Reviews, Vol 3, no 4, pp 876-881, April 2022

International Journal of Research Publication and Reviews

Journal homepage: www.ijrpr.com ISSN 2582-7421

People’s attitude towards Plastic Money

Patel Nisargkumar Ashokbhai1 and Dr. Vijay Gondaliya2

Student, B. V. Patel Institute of Management

ABSTRACT:

The concept of using money instead of barter trading system has a long history. It started from using coins made out of gold, silver, bronze etc., to today's
currency notes. With the help of new technologies, the banking system is continuously becoming stronger than ever before. The country is now increasingly
adopting the concept of Plastic Money.Plastic Money is a very recent context replacing the traditional concept of paying though cash. Plastic Money is a term
coined keeping in view the increasing number of transactions taking place on the part of consumer for paying for transactions incurred by them to purchase goods
and services physically and virtually. It includes credit cards, debit cards, pre-paid balance cards, smart cards etc. Consumers prefer plastic money over cash.
Plastic money is more convenient and easy method of payment. It is more secure way of payment as well as it can be anytime & anywhere access. It eliminates
need of carrying cash, and it is helpful for instant transaction so it is time saving. It was also founded that people not using plastic money because of lack of
knowledge and lack of trust, fraud issue and transaction charges and unstable income can be also one of the reasons for the same.

Key Words: Plastic Money, Attitude, Factors, Debit card, Credit card, Transactions

Introduction:

More and more often, we are increasingly dependent on new technologies to make our transactions fast and efficient. The continued and rapid growth
of technology has brought about significant changes in our everyday lives. During the last few years andthere is an enormous increase of internet
banking transactions using the so “Plastic Money” instead of cash. Plastic money is an alternative to the cash or the standard “Money”. Plastic money is
referring to the credit cards or the debit cards that we use to make purchases.The current study makes an attempt to know the people‟s attitude towards
usage of Plastic Money. Technology has drastically changed all the sectors including the financial sector, and the transactions in the banking system
have also undergone a remarkable change. The traditional concept of payment through cash is replaced by the credit cards or the debit cards called
„Plastic Money‟ that people are using to draw money or to make purchases. In this paper I tried to identify the customer attitude towards Plastic Money
as well as the risks that affect the consumer's decision while choosing various option of Plastic Money card available.This exacting research also
focuses on the opinion about the acceptance of Plastic Money, its usability and affordability while they are making an impact on its preference of use.

Review of Literature:

Patil (2014)in his study “Impact of Plastic Money on Banking Trends in India.” The main objectives of this study were to study the development of
banking industry in plastic cards usage trends, to analyse the factors for adoption of plastic money this replaces the paper or cash money, and to study
the future plans made by various banks and institutions for avoiding frauds raised due to plastic cards. The Study is been carried out by taking a survey
of 100 respondents by non-probabilistic convenience sampling method from a city of Mumbai by using structured questionnaire and interview
technique. 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)they studied “Plastic Money –A Way Forward for Cashless Transactions.” It‟s main objectives were to study the
perception of card users towards Plastic Money in India, to study the impact of Plastic Money on banking trends in India, and to study the issues and
challenges faced by banks for using plastic money. About 200 responses were collected to conduct the study. A quantitative research design was
adopted to perform the test of hypotheses. 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 andaccording to them, the
next thing to come via technology would be the use of Digital signature.

Kaseke (2012) they investigated Cash or Plastic Money the Payment Mode post Multi-Currency Period in Zimbabwe.” The main objective was to find

1
Student, B. V. Patel Institute of Management, Uka Tarsadia University, Bardoli
2
Associate Professor, B. V. Patel Institute of Management, Uka Tarsadia University, Bardoli
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877

out how easy consumer found plastic money to use. In carrying out the study, a descriptive survey design was used. A total of 200 questionnaires were
personally administered to respondents. It was found that individual factors such as education level and gender had a bearing on the use of plastic
money. The study also founded 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 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.

Sharma, Fazal & Jain (2014)they studied “An Evaluation of Consumer Perception and Attitude towards the Usage of Plastic Money” Main objectives
of this study were to identify the attitude of customers towards Plastic Money services, and to analyse the socio, economic and demographic profile of
respondents. The data was collected through the source directly, i.e., Primary Data. The data collected through the source was via a questionnaire or
survey format. The Study is been carried out by taking a survey of 212 respondents. It was found that consumers prefer plastic money over cash and
usage of Plastic Money is increasing.

Hogarth, Kolodinsky & Gabor (2008) they investigated the choice of payment while purchasing goods. The main objectives of this study were to
shed some light on the combinations of electronic payment choices that consumers utilise and to identify the socio-economic, demographic, and
attitudinal characteristics of groups of consumers that fall within those choice sets. The Surveys of Consumers were initiated in the late 1940s by the
Survey Research Center at the University of Michigan. The purpose of these surveys was to measure changes in consumer attitudes and expectations
with regard toconsumer finance decisions. Each monthly telephone survey of 500 households includes a set of core questions covering consumer
attitudes and expectationsalong with socio-economic and demographic characteristics. It was founds that younger, married, more highly educated,
higher income, higher asset households were more likely to adopt a broad range of electronic payment choices. They also funded that those consumers'
attitudes and perceptions of Plastic money, in terms of security and privacy, convenience, and familiarity and case of use, were significant correlates of
payment choices.

Research Methodology:

The objectives of this study are (1) To know the attitude of people towards plastic money, (2) To study the purpose for use of plastic money, and (3)To
study the awareness for the benefit of using plastic money.The research is an exploratory followed by descriptive one because the entire project is based
on questionnaire and analysis which is of exploratory nature followed by the detailed description and analysis so the project is of descriptive design
also.researcher have used primary data for the present study. Primary data were generated through questionnaire for this study from 140 respondents
from Suratdistrict. A well structured questionnaire was prepared and distributed to collect information. The sampling techniques used in this study is
non-probability convenience sampling. In such a technique research seeks his or her own convenience to reach the ultimate target group. Statistical
techniques like simple percentage analysis, Frequency distribution table, Crosstabulation between different variables, One Sample T-test, various charts
by MS Excel & SPSS has been used for data analysis.

Analysis:

Table 1 - Demographic Information

Gender Location

Male 103 Rural 102

Female 37 Urban 28

Suburban 10

Age Education Qualification

18 - 24 25 Higher Secondary 30

25 - 34 49 Under Graduate or Graduate 39

35 - 44 34 Post Graduate 56

45 - 54 30 Professional 2

55 or above 2 Other 13

Occupation Monthly Income

Student 8 Less than 10,000 18

Businessman 22 11,000 - 25,000 58

Employee 49 26,000 - 50,000 60

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Farmer 30 More than 50,000 4

Housewife 22

Other 9

Table2 - Which of the plastic card are you aware of?

Particular Frequency Percentage (%)

Credit Card 5 3.60%

Debit Card 33 23.50%

Both 102 72.90%

None 0 0%

Total 140 100%

According to the survey, 4% (5 respondents) are aware about credit card, 23.60% (33 respondents) are aware about debit card, While Majority 72.90%
(102 respondents) are aware about both credit card and debit card.

Table 3 - How many plastic cards you own?

Particular Frequency Percentage (%)

One 78 55.70%

Two 60 42.90%

Three 2 1.40%

More than three 0 0%

Total 140 100%

According to the survey, Majority 56% (78 respondents) only use 1 plastic money card, 42.90% (60 respondents) owns 2 plastic money cards, and only
1.40% (2 respondents) owns 3 or more than 3 plastic money cards.

Table4- Which payment processing network does your card belong to?

Particular Frequency Percentage (%)

Mastercard 11 7.90%

Visa 36 25.70%

RuPay 93 66.40%

Other 0 0%

Total 140 100%

According to the survey, Majority 66.40% (93 respondents) have RuPay card, 25.70% (36 respondents) have Visa card, and 7.90% (11 respondents
have Mastercard.

Table 5- How often do you use your plastic money?

Particular Frequency Percentage (%)

Daily 1 0.70%

Weekly 37 26.40%

Monthly 70 50%

Rarely 32 22.90%

Total 140 100%

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According to the survey, Half of the respondents (70 respondents) uses their card monthly, and 26.40% (37 respondents) uses their card weekly,
22.90% (32 respondents) rarely uses their plastic money card and only 1 respondent out of 140 uses card daily.

Table 6 - Where do you spend most using plastic money card?

Particular Frequency Percentage (%)

Online payment 130 92.90%

Shopping 117 83.60%

Traveling 102 72.90%

Entertainment 72 51.40%

Ticket reservation 69 49.30%

Restaurant 44 31.40%

Fees payment 42 30%

Home appliance 36 25.70%

Health 17 12.10%

According to the survey, Most of the respondents uses their cards for Online payments, Shopping, Traveling, Entertainment and Ticket reservation.

Table7 - Crosstabulation between Education of the respondents & Respondents’ awareness for plastic cards.

Which of the card are you aware of?

Education Total
Credit Card Debit Card Both

Higher Secondary 4 13 13 30

Under graduate or Graduate 0 2 37 39

Post Graduate 1 11 44 56

Professional 0 2 0 2

Other 0 5 8 13

Total 5 33 102 140

According to the survey, most of the respondents who are graduate and post graduate are more aware with both cards.

Table8 - Crosstabulation between Monthly income of the respondents & Paymentprocessing networks of respondents’ plastic money card.
Which payment processing network does your card
Monthly Income belong to? Total
Mastercard Visa RuPay

Less than 10,000 3 1 12 16

11,000 - 25,000 3 21 34 58

25,000 - 50,000 3 16 43 62

More than 50,000 1 0 3 4

Total 10 38 92 140

According to the survey, most of the respondents who have income between 26,000 – 50,000 are using RuPay card.

Table 9 -Crosstabulation between Gender of the respondents & Where respondents use their plastic money card mostly.

Gender
Where does respondents spend most using plastic money Total
card? Male Female
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Online payment 96 34 130

Shopping 84 33 117

Traveling 81 20 101

Entertainment 53 19 72

Ticket reservation 54 15 69

Restaurant 37 7 44

Fees payment 34 7 41

Home appliance 28 9 37

Health 15 3 18

According to the survey, most of the males and females use their plastic money cards for online payment, shopping, traveling and entertainment
purpose.

Table 10 -Rate the following reasons for preference towards plastic money.
Strongly Strongly
Particular Disagree Agree
Disagree Agree

More convenient and easy method of payment 7 9 55 69

More secure way of payment 3 12 59 66

Anytime & anywhere access 3 9 56 72

Eliminates the need of carrying cash 3 8 59 70

Instant transaction 2 10 57 71

Time saving 3 8 55 74

According to the survey, plastic money is more convenient and easy method of payment, It is more secure way of payment, It can be anytime &
anywhere access, It eliminates need of carrying cash, and it is helpful for instant transaction so it is time saving.

One Sample T-Test:

Table11 - According to you why people avoid using plastic money?

Test Value = 3
95% Confidence
Interval of
Particular Mean Sig. (2-
t df Mean Difference Difference
tailed)

Lower Upper

Unstable income 3.29 4.014 139 0.000 0.286 0.14 0.43

Lack of knowledge 3.44 7.458 139 0.000 0.436 0.32 0.55

Lack of trust 3.44 7.348 139 0.000 0.436 0.32 0.53

Fraud 3.41 5.524 139 0.000 0.407 0.28 0.55

Malpractices by outlet owners 3.34 5.073 139 0.000 0.336 0.20 0.47

Transaction charges 3.38 6.27 139 0.000 0.379 0.26 0.5

Documentation 3.25 3.631 139 0.000 0.250 0.11 0.39

H0:People doesn‟t avoid using plastic money because of above reasons.

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H1: People avoid using plastic money because of above reasons.

From the above table p-value of all the variables are less than 0.05 so it can be concluded that null hypothesis are rejected, It can be said that
respondents avoid using plastic money because of some reasons like unstable income, lack of knowledge, lack of trust, fraud, malpractices by outlet
owners, transaction charges, documentation etc.

Findings:

It was founded that almost 97.90% of the respondents have an idea about plastic money. Majority 72.90% of the respondents are aware about both
credit and debit cards. Majority 55.70% of the respondents owns one plastic money card while 42.90% are having two plastic money cards. Majority
66.40% of the respondents have RuPay card, 25.70% have Visa card, and only 7.90% have Mastercard. Half of the respondents uses their card monthly,
26.40% uses their card weekly. Most of the people use their plastic money cards for Online payment, Shopping, Traveling, Entertainment and Ticket
reservation.Almost 95% of the respondents are agree that more card transaction will help to curb black money circulation in economy. 82% of the
respondents are agree that plastic money will penetrate in society more in future. Young generation is more aware about the plastic money
cards.Respondents from 18 – 24 and 25 – 34 are mostly use their plastic money cards for online payment, shopping, traveling, and entertainment
purpose. Consumers prefer plastic money over cash. Plastic money is more convenient and easy method of payment, It is more secure way of payment,
It can be anytime & anywhere access, It eliminates need of carrying cash, and it is helpful for instant transaction so it is time saving.It was also founded
that people not using plastic money because of lack of knowledge and lack of trust, fraud issue and transaction charges, Unstable income can be also
one of the reason for not using plastic money.

Conclusion:

This research projects shows that majority of the people‟s uses and prefers Plastic money. Most of the people prefer using both credit card and debit
card over cash and they mostly use it for online payment, shopping, traveling and entertainment purpose. The people prefers Plastic money because it is
more convenient and easy method of payment, It eliminates the need of carrying cash and it is helpful for instant transaction so it is time saving. People
also strongly agree that there are some problems related to plastic money due to unstable income, lack of knowledge, lack of trust, fraud issue and
transaction charges etc. It can't be used for daily needs in country like India. The other factors influencing the use of plastic money can be age, location,
income, education qualification and occupation.The project highlights some of the advantages like more convenient, easy and secure way of payment;
anytime & anywhere access 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.

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