Moving from cash to cashless economy: - A study of consumer perception towards digital transactions

Abstract

In this era, we can see a very significant level of change in the means of making and receiving payments. Due to constant level of technological infrastructure and policy changes, there has been an increase in the number of modes of payments. Cashless economy is the future of Indian economy where there will be no physical flow of cash. All the payments will be made and received in the virtual world. Cashless economy got popular after demonetization where plastic money was widely used. The study is aimed towards studying the level of awareness among the citizens about cashless economy. The study also helps in determining the factors which influence the people to switch from cash towards cashless payments and what are the benefits people avail by using other means of payments.The primary data was collected by distributing questionnaires to 280 respondents, who have been using any digital mode of payment. Data is collected from students, working professionals and business class people. The questionnaire asks questions about the benefits people avail while using digital payment methods and what are the various factors which influence the people to use digital payment methods and what are the risks they face associated with digital payments.After the research conducted we can say that the working professionals and business class people use digital payment methods more. There are various factors which influence the people to shift such as offers, cashback etc. There is still a long run for India to be cashless to full extent as the government needs to develop a smooth and secure infrastructure.