DATA ANALYSIS AND INTERPRETATION
12. Future prospects of plastic money
25 25
22
28
0 5 10 15 20 25 30
Weighted avg
No of respondents (weighted average) 25 25 22 28
Feeling of Insecurity
Fear of loosing the card
Unneceesary Formalities
High fee Charged by bank
Respondents were asked to explain to future prospects of plastic money. The results are as follows:
Table 5.12: Future prospects of plastic money.
Options No. of respondents %age of
Figure 5.12 future prospects of plastic money
Interpretation: It is clear from the graph mostly people believe that the future of plastic money is at boom. 56% believe that their will be steady growth and 32% are of the view of steady growth.6% can’t predict anything.
Rapid growth Steady growth Stagnant Can’t predict Declining
FINDINGS
Following are the findings that are drawn from the study:
Respondent taken for this study are those who are using the plastic money in their daily life.
62% of the respondents believe that plastic money is the currency of modern India.
56% of respondents own one debit card and 26%owns two debit cards.
People have less craze for credit card. Only 46% of the respondents have credit card.
Respondents mostly prefer the plastic money of ICICI bank and PNB.
34% using the cards for the last 3 years and the trend of plastic money have emerged from the last few years.
Mostly people use the cards for shopping and withdrawl of money .plastic money is mostly preferred at the time of shopping.
Debit card is more beneficial according to 36% respondents.
Debit card don’t provide security to the cardholders.
42% respondents are dissatisfied that debit card is free from fraud.
Mostly people agreed that debit card provide the facility of anytime access. Anytime you can withdraw your money.
Credit card is convenient way to pay agreed by most of the respondents.
Credit card provide prestige to holders having the tie up with the famous card companies it provides the sense of pride.
38% cardholder agreed that the plastic money holders have to tackle with the problem of insecurity.
Cardholders have to fulfill the unnecessary formalities while obtaining the card.
Plastic money has a rapid growth in the coming years.
The growth credit card in India is still very slow. Companies are going really hard to increase the sale of credit cars.
According to weighted average method the respondents highly satisfied that the debit card is easy to carry and credit card provide convenience to pay.
CONCLUSION
In the last two years, spending pattern through plastic money has changed drastically.
Travelling, dining and jewellery are the top three purchases that Indians make through credit cards. Two years ago, it was jewellery and apparel purchases that formed the largest chunk of purchases through plastic money. Fuel accounts for a very small portion of credit card purchases as these are largely paid through debit cards.
Consumers were not only more open to the possibility of owning a financial card, but were also more than willing to use their cards to settle dues. The status symbol aspect of owning and using cards, too, played its part in bringing about such robust growth over the space of a single year. Debit cards, in particular, proved immensely popular.
According to projections for the 2003-2008 period, the number of financial cards in circulation will register a compounded annual growth rate of nearly 51 per cent so the satisfaction of consumers has also increased. There are many ethical issues and challenges for plastic money issuing banks/companies. Security relating to card should be first priority for each bank/company.
Consumers are preferring these cards mostly for shopping online E-commerce has given a better way to use the plastic money.
At last it is concluded that plastic money has a very bright future in the coming years because of the increasing trend of e-commerce.
RECOMMENDATIONS
Various offers and discounts should be provided on the plastic money so that all the users feel satisfied with their card choice.
The interest charges on credit cards should be reduced so that people are encouraged to use it in regular routine
More facility should be provided to the cardholder in order to satisfy them completely.
There should be more sales executives to reinforce new customers.
More outlets should be provided where the cards can be easily accepted.
The unnecessary formalities should be reduced in order to obtain the plastic money.
Advertisements should be given through TVs, magazines and hoarding to have maximum reach because the respondents perceive these as important promotional tools.
The whole procedure of obtaining the plastic money needs to be authentic.
Companies should provide security to the cardholders.
Companies should reduce the amount of the annual fee charged on the cards.
BIBLIOGRAPHY
Kothari C.R, “Research Methodology: Research and Techniques”; Vishwa Prakshan, New Delhi, 4th edition.
E.gordan and Natrajan, Financial Services, Himalaya Publishing House, Mumbai. , 5th edition.
• ARTICLES
Cunningham Julie, Kansas State University ,article “College Student Using The Credit Card” Nov’ 98
Loebecke.S Elliot, article “Smart Card Based Electronic Commerce Characteristics And Roles” Jan’ 98
Swift, Kevin, article “Credit Card and Debit Cards: What New? Where To?” ,May’
1998
Hayashi fumiko and weiner Stuart E. ,article “Competition And Credit And Debit Card Interchange Fees” ,Sept’2005
Chakravorti ,Sujit ,article “Theory Of Credit Card Networks: A Survey Of Literature
“June 03 2003
Hunt Robert ,article “An Introduction To The Economics Of Payment Card Networks”
Chartered financial analyst ,article “Credit Card Crisis In South Korea” 2003
Chartered financial analyst ,article “Ethical Issues And Challenges” ,Nov 2007
• WEBSITES
http://www.rba.gov.au/PaymentsSystem/Publications/BISCommitteeOnPayment AndSettlementSystems/retail.pdf
http://www.federalreserve.gov/boarddocs/speeches/2001/20011205/default.htm
http://www.icicibank.com/pfsuser/cards/creditcard/cc_home.htm
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/BankAcco untsAndBankingProducts/DG_10035158
http://www.paypal.com/cgi-bin/webscr?
cmd=xpt/cps/account/VDCFrequentlyAskedQuestions-outside
http://finance.indiamart.com/investment_in_india/plastic_money.html
QUESTIONNAIRE
Dear sir/madam
I am the student of PGDMM in D.A.V College Chandigarh and topic of my project report is “Comparative Study of Plastic Money with special Reference to Debit Cards and Credit Cards”. I want your cooperation to fill this questionnaire related to my project.
Q1.Do you use plastic money?
(i) yes (ii) No
Q2.Which card do you have?
(i) Debit card (ii) Credit card (iii) Both
Q3.How many no. of debit cards of different companies owned by you?
(i) 1 (ii) 2 (iii) 3 (iv) None
Q4 How many no. of credit cards of different companies owned by you?
(i) 1
(ii) 2 (i) 3 (ii) None
Q5: Which companies /bank card do you have?
(i) HDFC Bank (ii) ICICI Bank
(iii) IDBI Bank
(iii) Centurion Bank
(v) Any Other If yes, specify……….
Q6: Since how long you have been using debit card/credit card/both?
(i) Less than 1 yr (ii) Between 1yr-3yr (iii) Between 3yr-5yr (iv) More than 5 yr
Q7: Normally for what purpose do you use cards? Rank according to your preference (i) shopping
(ii) withdrawal of money (iii) Petrol filling (iv) Hotel & Restaurants
(v) Any other (going to theater etc)
Q8: Which card according to you is more beneficial?
(i) Debit Card (ii) Credit Card
(iv) Both
Q9: What are the benefits provided by debit cards?
Strongly disagree neither agree agree strongly
Disagree nor disagree agree
Q10: What are the benefits provided by credit cards?
Strongly disagree neither agree agree strongly
Q11: What are the problems you are facing in processing the card?
Strongly disagree neither agree agree strongly
Address:
Occupation: