Page 1 of 8
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 02
February 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 36
A Brief Analysis on the Usage of Plastic Money
Monika Garg
Asst. Professor in commerce Dept.
V.A.K.M, Bahadurgarh
ABSTRACT:
Remembering the changing technology supplanting the customary idea of paying not
through cash but rather by plastic money (credit and platinum cards), this examination was
embraced to consider the awareness and utilization of plastic money among the consumers.
Today’s world is the technological world as things are changing very rapidly Plastic money
refers to the Debit card, Credit card, ATM card and Smart card etc. as these are easy to carry
and handle, these are gaining popularity these days. Even Governments and banks of almost
every country supported it due to fiscal advantages and credit control measures.
The current study presents an overview of the
development of plastic money. This study also highlights the advantages and problems faced
by users while using the plastic money. This study has been carried out by a survey of 30
respondents by using structured questionnaire method to know the preference of users.
KEY WORDS
Plastic money, Paper money, Debit card, Credit card, ATM card
INTRODUCTION
Plastic money is an exceptionally late setting supplanting the conventional idea of paying
however cash. Plastic money is a term instituted keeping in see the expanding number of
transactions occurring with respect to buyer for paying for transactions caused by them to buy
products and ventures physically and essentially. It incorporates charge cards, debit cards,
prepaid adjust cards, brilliant cards and so forth. In our investigation, we are commonly
focusing just on Visas and debit cards so as to discover the viability of such cards, all things
considered, and consumers see them. Additionally we would attempt to discover the
particular zones that consumers want to spend more through these cards and which out of the
two do they incline toward for installment.
“Plastic money refers to the cards that people use it whenever they want and pay later.
It makes it too easy for people to buy things.”
Those days are gone when we had to carry cash & plan
our shopping sprees. Plastic money is just the replacement of paper money. It is an electronic
module where all information about card holder and concerned bank are stored on cards. It is
not only convenient but also very reliable & safe. In most of developed countries, plastic
money has replaced paper currency as whole. These countries are Australia, New Zealand,
Romania, Canada and Maldives. In 2013 Bank of England also announced that England’s
Page 2 of 8
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 02
February 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 37
currency would also be made with plastic in 2016. A survey was also conducted to know the
preference of public. Nearly 13000 people gave their feedback & 87% people responded in
favor of polymer money. Plastic money is gaining popularity due to easy to handle 7 carry,
durable, safe, convenient and time saver. Now it is being also adopted in developing
countries gradually. Plastic money concept is gaining popularity in India also. According to
Soumya kanti Ghosh the chief economic executive of SBI state that E-Commerce is one of
the may reason behind the uptick of Debit 7 Credit cards.
History of Plastic Money:
Long before the invention of money, humans developed Barter Trading
(things are exchanged from one to another). The money was firstly originated in the form of
coins of semiprecious metals. But it was soon replaced by the currency notes due to problems
like their heavy weights, depreciation, less availability of metals and difficulty of carrying
bulk amount. The first paper note appeared in china in 806 AD.
Then paper money is replaced by plastic money such as
Debit card, Credit card, ATM card etc. credit card was first used in the 1920’s in the United
States. The charge plate developed by U.S in 1928”s. it was a small card embossed with
customer‘s name, city and state. Diners Club & American Express launched the world’s first
plastic card in U.S.A in 1950. The Visa association of card launched debit card in 1989. Citi
bank & HSBC were the pioneers in the Indian credit card market in the 1980. After that
ICICI, HDFC and many other banks started issuing polymer money. Plastic money is gaining
acceptance not only in urban area but also in rural area. HDFC claim that 25 % of its
cardholders are from rural & semi urban area as HDFC is currently the largest issuer in India
with a portfolio of 6.53 million cards.
Advantages of Plastic Money
Plastic money is surly more durable and easy to carry from one place to another. It has
following advantages:
Economical
Convenient
Easy to handle & carry
Homogeneous
Fiscal Advantages
Extra Safety
Need of emergency
Time Saving
Purchasing Power
Any time/ Any where
Demerits of Plastic Money
Plastic / Polymer money is not free from any flaws. It has certainly some weak points which
are following:
Fraud
Page 3 of 8
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 02
February 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 38
Less banking habits
Limited options
Less global availability
Risk of misuse
Worn out of Magnetic strip
Service charge
Over usage of cards
Objectives of the Study
The objectives of the study are as follows:
1) To know the preferences of customers from paper money & plastic money.
2) To study consumer’s reasons for preferring the plastic money over paper money.
3) To study the future of plastic money in India.
Research Methodology
The present study is mainly based on primary and secondary data related to Plastic money.
Secondary data and information have gathered from Books, Journals, research paper etc.
Primary data and information also have collected through questionnaire method. The research
study is Exploratory in nature. The Study is been carried out by taking a survey of 30
respondents. The study sample that was selected consisted of including students, working
professionals and senior citizens.
Sample Size: 30
Questionnaire:
A questionnaire consists of a set of questions is prepared to respondents for their answers.
Closed Ended as well as Open Ended questionnaire were used in my market research.
Results &Analysis:
In order to subject the data to statistical analysis, frequency tables & percentage
method as well as charts are also used to make the data effective. Respondents tick more than
one option in response of some questions where it applies. Results are shown with help of
following tables and charts which are as following:
Data Analysis & Interpretation
General information of respondent (30) frequency %
Age group 20-35 23 77
35-50 6 20
50-70 1 03
Education level 12th 5 10
Graduate 25 50
Post graduate 16 32
Non Respondent 4 8
Occupation Level Employees 30 100
a) Male 9 30
b) Female 21 70
---
---
