Role Of Plastic Money

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An Evaluation of Consumer Perception and Attitude Towards the Usage of Plastic Money in India Anoushka Sharma1, Syed Fazal Karim2, Vipul Jain3 1(Student, Delhi School of Management, Delhi Technological University, India) 2(Student, Delhi School of Management, Delhi Technological University, India) 3(Student, Delhi School of Management, Delhi Technological University, India) ABSTRACT 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 fresh reforms in the banking sector, the marketing of financial products has become…show more content…
The prevalent mode of settlement across India in the 20th century has been coins, cash and cheques. As we move ahead into the 21st century, payment through cash and cheques itself has encountered a transfiguration. It has moved from being a physical paper-based transfer of value to a virtual electronic one. This is in line with the introduction of advanced technology based systems in banking services world over which resulted in great modification in terms of how financial organizations provide services to customers purchases such as identification along with that it keeps track of transactions as they are incurred with all the specifics of purchases such as store name, date of purchase, price of the product, purchase place etc. Thus holder has the facility to “retrospect” his memory about his purchases which is denied in the case of paper money…show more content…
Electronic service is becoming a feasible option for dealings between financial service providers and their clients [1] (Speece and Rotchanakitumnuai, 2004). This electronic form of payment has far reaching significance – notably for India. Primarily, it helps aligning with the global financial services business by making the systems more competent and cost effective. It also supports in undertaking the unique challenges India faces – the large unbanked society, the deregulated cash economy and need for monetary clarity. Plastic money yields many more benefits than merely facilitating the replacement of cash and cheques for consumer transactions. It has far-reaching impact on the economy as a whole through low transaction costs, increased operational competence, improved financial framework and an opportunity for the expeditiously evolving Indian economy to further globalize [2]. In the following sections, existing literature and factors affecting the consumer perception towards the plastic money are discussed. A research design has been used based on the collected data to predict the consumers’ acceptance behavior. Finally, the outcomes are analyzed and
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