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Public Perception on Cashless Transactions in India

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 Asian Journal

Asian Research Consortium of Research in

Banking
and
Asian Journal of Research in Banking and Finance
Vol. 7, No. 7, July 2017, pp. 63-77. Finance
ISSN 2249-7323 www.aijsh.com
A Journal Indexed in Indian Citation Index
DOI NUMBER: 10.5958/2249-7323.2017.00069.4
UGC APPROVED JOURNAL

Public Perception on Cashless Transactions in India

Dr. Venkateswararao Podile*; P. Rajesh**

*Professor,
Andhra Loyola Institute of Engineering and Technology,
Andhra Pradesh, India.
[email protected]
**Assistant Professor,
Andhra Loyola Institute of Engineering and Technology,
Andhra Pradesh, India.
[email protected]

Abstract

After demonetization initiatives, most of the people in India started electronic payments for their
transactions. Everyone from the small merchant to neighboring vegetable vendor is embracing
digital payment solutions. Slowly India is moving from cash to cashless economy. A cashless
economy is one in which all the transactions are done using cards or digital means. The circulation
of physical currency is minimal in cashless economy. The benefits of Cashless economy are many.
The increased use of credit cards will definitely reduce the amount of cash that people have to carry
which reduces the risk and the cost associated with that. In this paper an attempt is made to
examine the Public perception in India towards cashless transactions and the attempt is also made
to identify the challenges faced by them during their transactions.

Keywords: Cashless Transactions, Perception, Digital Payments, Convenience, Incentives.

Introduction
After demonetization initiatives, most of the people in India started electronic payments for their
transactions. Everyone from the small merchant to neighboring vegetable vendor is embracing
digital payment solutions. Slowly India is moving from cash to cashless economy. A cashless
economy is one in which all the transactions are done using cards or digital means. The circulation
of physical currency is minimal in cashless economy. The benefits of Cashless economy are many.

63
 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

An increased use of credit and debit cards instead of cash enable a more detailed record of all the
transactions which take place in the society, allowing more transparency in business operations and
money transfers. The increased use of credit cards will definitely reduce the amount of cash that
people have to carry which reduces the risk and the cost associated with that. In this paper an
attempt is made to examine the Public perception in India towards cashless transactions and the
attempt is also made to identify the challenges faced by them during their transactions.

Review of Literature
Hirschman, E. C. (1979)i studied the impact of payment method on purchase behavior. He found
that use of credit cards encourage more purchases than use of cash. Avery, R.B., et al. (l986) ii found
that there was a strong positive correlation between income, education, wealth, urban variable and
middle age and dependent variable credit card use. Natarajan and Manohar (1993) iii examined the
factors influencing usage of credit cards issued by a bank in India. They found that that sex, age,
educational qualification of card holders has no relationship with utilization of credit cards. They
also found that occupation, income, employment status of spouse, mode of getting card has
relationship with utilization of credit cards. George (1995) iv found that VISA and Master Card
played a major role in international payment system. Worthington (1995) v expressed the view that
the cashless society in which clumsy and expensive to handle coins and notes are replaced by
efficient electronic payments initiated by various types of plastic cards is a good prospect for the
twenty first century. Radhakrishan (1996)vi found that the debit cards have wide acceptability than
credit cards because of assurance of payments to retailers and lack of some transaction charges.
Klee, Elizabeth (2005) vii found that time factors significantly determine the use of media of
exchange in payment systems. They also found that sensitivity to time factors depend on the
income, age and demographic characteristics local market. Jain, P.M (2006)viii expressed the view
that electronic payments will be able to check black money. Al-Laham (2009)ix found that there
was considerable interest in the development of electronic money schemes in recent years. He also
said that Electronic money could become an important form of currency in the future. Mandeep
Kaur (2011)x attempted to unveil the perception held by card users and member establishments
towards plastic money in India. Dr. Navpreet Singh Sidhu (2013) xi studied the perception and
acceptability of selected bank customers about electronic banking. Bappaditya Mukhopadhyay
(2016) xii studied cash less payments in India. He developed a theoretical model of payment
decisions made by consumers and sellers. He found that the convenience of cashless transactions
weighed against the temptation to evade taxes

Objectives
The general objective of the study is to study Public Perception on Cashless Transactions in India.
The specific objectives are the following.

1. To examine the impact of transaction related factors including convenience, security,

costs, incentives and procedures on cashless transactions in India.

2. To study the impact of technical factors including poor internet connectivity and defunct
POS machines on cashless transactions in India.

64
 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

3. To enquire into the impact merchant and customer related factors including enthusiasm of
merchants and lack of technical knowledge to customers and reluctant to disclose financial
information by the customer on cashless transactions in India.

4. To look into the impact of bank related factors including financial limits and delayed
reimbursements on cashless transactions in India.

Methodology

The study is mainly based upon the primary data. Primary data was collected through survey
method. Questionnaire was used for collecting data. Questionnaire was developed based on past
experience of the researchers and review of literature on the topic done by the researchers.
Questionnaire consists of total sixteen questions out of which four questions related to profile of
respondents. Five level Likert scale was used in questionnaire. Population of the study consists of
savings account holders of various banks in India. Stratified random sampling technique is used for
selecting respondents for the sample. Sample size is 195. Total population was divided into 36
strata depending upon the total number of states and union territories in India. Out of 195
respondents, 174 are from 29 states in India selected at the rate of six each, and 21 are from 7 union
territories of India taken at the rate of 3 each. For selecting respondents from strata simple random
sampling technique is used using random number tables. Collected data is analyzed by calculating
percentages. Chi-square test is used for testing the hypotheses.

Analysis and Discussion of Results

Table 1.1: Gender of the Respondents

Gender Number of Respondents Percentage

Male 115 58.98
Female 80 41.02
Total 195 100

Out of 195 respondents surveyed, 58.98 percent are male and 41.02 percent respondents are female.

Table 1.2: Age of the Respondents

Age Number of Respondents Percentage

Below 30 years 35 17.94
Between 31-40 years 83 42.57
Between 41-50 years 65 33.33
Above 50 years 12 6.16
Total 195 100

Out of 195 respondents surveyed, 17.94 percent respondents’ age is below 30 years, 42.57 percent
respondents’ age is in between 31-40 years, 33.33 percent respondents’ age group is in between 41-
50 years and remaining 6.16 percent respondents’ age is above 50 years.

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 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

Table 1.3: Occupation of the Respondents

Occupation Number of Respondents Percentage

Farmers 10 5.13
Employee 116 59.49
Self Employed/ Business 28 14.36
Others 41 21.02
Total 195 100

Out of 195 respondents surveyed, 5.13 percent respondents are farmers, 59.49 percent are
employees, 14.36 percent are self employed/business holders and remaining 21.02 percent are
others.

Table 1.4: Income of the Respondents

Income Number of Respondents Percentage

Below Rs.20,000 25 12.82
Between Rs. 20000-40,000 52 26.67
Between Rs. 40,000-60,000 63 32.31
Above Rs.60,000 55 27.56
Total 195 100

From the data in the above table, it is clear that 12.82 percent of respondents’ salary is less than
Rs.20, 000, 26.67 percent of respondents’ salary range between Rs.20, 000 and Rs.40, 000, 32.31
percent of respondents’ salary range between 40,000 and 60,000 and remaining 27.56 percent
respondents’ salary is above 60,000.

Table 2.1 Responses on Convenience in Transaction is the Reason for

Cashless Payments in India

Sl.No Opinion Number of Respondents Percentage

1 Strongly Agree 45 23.08
2 Agree 97 49.74
3 Neutral 12 6.15
4 Disagree 31 15.9
5 Strongly Disagree 10 5.13
Total 195 100
Source: Primary Data

The data in the above table indicates that, 23.08 percent of respondents strongly agree, 49.74
percent of respondents agree, 6.15 percent of respondents are neutral, 15.9 percent of respondents
disagree and remaining 5.13 percent of respondents strongly disagree about convenience in
transaction is the reason for cashless payments in India.

It is concluded that Majority of the public (72.82%) felt that transaction convenience is the reason
for cashless payments in India.

66
 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

χ2-test

H0: Convenience in transaction has no influence on cashless payments in India

H1: Convenience in transaction has an influence on cashless payments in India

Observed Expected (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/ Ei

Frequency (Oi) Frequency (Ei)
45 39 6 36 0.92
97 39 58 58 86.27
12 39 -27 729 18.69
31 39 -8 64 1.64
10 39 -29 841 21.56
Total (χ2) 129.08

Calculated value of χ2=129.08. The Critical value of χ2 at 4 degrees of freedom at 5% level of

Significance is 9.488. Calculated value is greater than Critical Value i.e., 129.08>9.488, Hence, H 0
is rejected.

Table 2.2 Responses on Security in Transaction is the Main Concern in

Cashless Payments

Sl.No Opinion Number of Respondents Percentage

1 Strongly Agree 51 26.15
2 Agree 87 44.62
3 Neutral 13 6.67
4 Disagree 32 16.41
5 Strongly Disagree 12 6.15
Total 195 100
Source: Primary Data

The data in the above table indicates that, 26.15 percent of respondents strongly agree, 44.62
percent of respondents agree, 6.67 percent of respondents are neutral, 16.41 percent of respondents
disagree and remaining 6.15 percent of respondents strongly disagree about security in transaction
is the main concern in cashless payments.

It is concluded that Majority of the public (70.77%) felt that security in transaction is the main
concern in cashless payments

χ2-test

H0: Security in transaction has no influence on cashless payments in India

H1: security in transaction has an influence on cashless payments in India

67
 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

Observed Expected (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/ Ei

Frequency (Oi) Frequency (Ei)
51 39 12 144 3.69
87 39 48 2304 59.08
13 39 -26 676 17.33
32 39 -7 49 1.26
12 39 -27 729 18.69
Total (χ2) 100.05

Calculated value of χ2=100.05. The Critical value of χ2 at 4 degrees of freedom at 5% level of

Significance is 9.488. Calculated value is greater than Critical Value i.e., 100.05>9.488, Hence, H 0
is rejected.

Table 2.3 Responses on Transaction Costs Discourage Cashless

Transactions

Sl.No Opinion Number of Respondents Percentage

1 Strongly Agree 35 17.95
2 Agree 68 34.87
3 Neutral 22 11.28
4 Disagree 55 28.21
5 Strongly Disagree 15 7.69
Total 195 100
Source: Primary Data

The data in the above table indicates that, 17.95 percent of respondents strongly agree, 34.87
percent of respondents agree, 11.28 percent of respondents are neutral, 28.21 percent of
respondents disagree and remaining 7.69 percent of respondents strongly disagree about transaction
costs discourage cashless transactions.

It is concluded that Majority of the public (52.82%) transaction costs discourage cashless payments

χ2-test

H0: Transaction costs have no influence on cashless payments in India

H1: Transaction costs have an influence on cashless payments in India

Observed Expected (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/ Ei

Frequency (Oi) Frequency (Ei)
35 39 -4 16 0.41
68 39 29 841 21.56
22 39 -17 289 7.41
55 39 16 256 6.56
15 39 -24 576 14.77
Total (χ2) 50.71

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 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

Calculated value of χ2=50.71. The Critical value of χ2 at 4 degrees of freedom at 5% level of

Significance is 9.488. Calculated value is greater than Critical Value i.e., 50.71.05>9.488, Hence,
H0 is rejected.

Table 2.4 Responses on Incentives Encourage People to Avail Cashless

Transactions

Sl.No Opinion Number of Respondents Percentage

1 Strongly Agree 43 22.05
2 Agree 83 42.56
3 Neutral 11 5.64
4 Disagree 41 21.03
5 Strongly Disagree 17 8.72
Total 195 100
Source: Primary Data

The data in the above table indicates that, 22.05 percent of respondents strongly agree, 42.56
percent of respondents agree, 5.64 percent of respondents are neutral, 21.03 percent of respondents
disagree and remaining 8.72 percent of respondents strongly disagree about incentives encourage
people to avail cashless transactions.

It is concluded that Majority of the public (64.61%) felt that incentives encourage people to avail
cashless transactions.

χ2-test

H0: Incentives have no influence on cashless payments in India

H1: Incentives have an influence on cashless payments in India

Observed Expected (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/ Ei

Frequency (Oi) Frequency (Ei)
43 39 4 16 0.41
83 39 44 1936 49.61
11 39 -28 784 20.10
41 39 2 4 0.10
17 39 -22 484 12.41
Total (χ2) 82.63

Calculated value of χ2=82.63. The Critical value of χ2 at 4 degrees of freedom at 5% level of

Significance is 9.488. Calculated value is greater than Critical Value i.e., 82.63>9.488, Hence, H 0 is
rejected.

69
 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

Table 2.5 Responses on Transaction Procedures Complicate Cashless

Payments

Sl.No Opinion Number of Respondents Percentage

1 Strongly Agree 64 32.82
2 Agree 52 26.67
3 Neutral 26 13.33
4 Disagree 35 17.95
5 Strongly Disagree 18 9.23
Total 195 100
Source: Primary Data

The data in the above table indicates that, 32.82 percent of respondents strongly agree, 26.67
percent of respondents agree, 13.33 percent of respondents are neutral, 17.95 percent of
respondents disagree and remaining 9.23 percent of respondents strongly disagree about transaction
procedures complicate cashless payments.

It is concluded that Majority of the public (59.49%) felt that transaction procedures complicate
cashless payments.

χ2-test

H0: Transaction procedures have no influence on cashless payments in India

H1: Transaction procedures have an influence on cashless payments in India
Observed Expected (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/ Ei
Frequency (Oi) Frequency (Ei)
64 39 25 625 16.02
52 39 13 169 4.33
26 39 -13 169 4.33
35 39 -4 16 0.41
18 39 -21 441 11.30
Total (χ2) 36.39

Calculated value of χ2=36.39. The Critical value of χ2 at 4 degrees of freedom at 5% level of

Significance is 9.488. Calculated value is greater than Critical Value i.e., 36.39>9.488, Hence, H 0 is
rejected.

Table 2.6 Responses on Poor Internet Connectivity is the Obstacle for

Cashless Transactions
Sl.No Opinion Number of Respondents Percentage
1 Strongly Agree 43 22.05
2 Agree 92 47.18
3 Neutral 22 11.28
4 Disagree 28 14.36
5 Strongly Disagree 10 5.13
Total 195 100
Source: Primary Data

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 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

The data in the above table indicates that, 22.05 percent of respondents strongly agree, 47.18
percent of respondents agree, 11.28 percent of respondents are neutral, 14.36 percent of
respondents disagree and remaining 5.13 percent of respondents strongly disagree about poor
internet connectivity is the obstacle for cashless transactions.

It is concluded that Majority of the public (69.23%) felt that poor internet connectivity is the
obstacle for cashless transactions.

χ2-test

H0: Poor internet connectivity has no influence on cashless payments in India

H1: Poor internet connectivity has an influence on cashless payments in India

Observed Expected (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/ Ei

Frequency (Oi) Frequency (Ei)
43 39 4 16 0.41
92 39 53 2809 72.02
22 39 -17 289 7.41
28 39 -11 121 3.10
10 39 29 841 21.56
Total (χ2) 104.5

Calculated value of χ2=104.5. The Critical value of χ2 at 4 degrees of freedom at 5% level of

Significance is 9.488. Calculated value is greater than Critical Value i.e., 104.5>9.488, Hence, H0 is
rejected.

Table 2.7 Responses on Defunct POS Machines Complicate Cashless

Transactions

Sl.No Opinion Number of Respondents Percentage

1 Strongly Agree 33 16.92
2 Agree 67 34.36
3 Neutral 23 11.79
4 Disagree 48 24.62
5 Strongly Disagree 24 12.31
Total 195 100
Source: Primary Data

The data in the above table indicates that, 16.92 percent of respondents strongly agree, 34.36
percent of respondents agree, 11.79 percent of respondents are neutral, 24.62 percent of
respondents disagree and remaining 12.31 percent of respondents strongly disagree about defunct
Pos machines complicate cashless transactions.

It is concluded that Majority of the public (51.28%) felt that defunct Pos machines complicate
cashless transaction.

71
 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

χ2-test

H0: Defunct POS machines have no influence on cashless payments in India

H1: Defunct POS machines have an influence on cashless payments in India

Observed Expected (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/ Ei

Frequency (Oi) Frequency (Ei)
33 39 -6 36 0.92
67 39 28 784 20.10
23 39 -16 256 6.56
48 39 9 81 2.07
24 39 -15 225 5.77
Total (χ2) 35.42

Calculated value of χ2=35.42. The Critical value of χ2 at 4 degrees of freedom at 5% level of

Significance is 9.488. Calculated value is greater than Critical Value i.e., 35.42>9.488, Hence, H 0 is
rejected.

Table 2.8 Responses on Lack of Enthusiasm on Merchant is the Barrier for

Cashless Transactions

Sl.No Opinion Number of Respondents Percentage

1 Strongly Agree 35 17.95
2 Agree 71 36.41
3 Neutral 26 13.33
4 Disagree 43 22.05
5 Strongly Disagree 20 10.26
Total 195 100
Source: Primary Data

The data in the above table indicates that, 17.95 percent of respondents strongly agree, 36.41
percent of respondents agree, 13.33 percent of respondents are neutral, 22.05 percent of
respondents disagree and remaining 10.26 percent of respondents strongly disagree about lack of
enthusiasm on merchant is the barrier for cashless transactions.

It is concluded that Majority of the public (54.36%) felt that lack of enthusiasm on merchant is the
barrier for cashless transactions.

χ2-test

H0: Lack of enthusiasm on merchant has no influence on cashless payments in India

H1: Lack of enthusiasm on merchant has an influence on cashless payments in India

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 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

Observed Expected (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/ Ei

Frequency (Oi) Frequency (Ei)
35 39 -4 16 0.41
71 39 32 1024 26.36
26 39 -13 169 4.33
43 39 4 16 0.41
20 39 -19 361 9.26
Total (χ2) 40.67

Calculated value of χ2=40.67. The Critical value of χ2 at 4 degrees of freedom at 5% level of

Significance is 9.488. Calculated value is greater than Critical Value i.e., 40.67>9.488, Hence, H 0 is
rejected.

Table 2.9 Responses on Lack of technical Knowledge is the Obstruction for

Cashless Transactions

Sl.No Opinion Number of Respondents Percentage

1 Strongly Agree 39 20
2 Agree 65 33.33
3 Neutral 15 7.69
4 Disagree 44 22.57
5 Strongly Disagree 32 16.41
Total 195 100
Source: Primary Data

The data in the above table indicates that, 20 percent of respondents strongly agree, 33.33 percent
of respondents agree, 7.69 percent of respondents are neutral, 22.57 percent of respondents disagree
and remaining 16.41 percent of respondents strongly disagree about lack of technical knowledge is
the obstruction for cashless transactions.

It is concluded that Majority of the public (53.33%) felt that lack of technical knowledge is the
obstruction for cashless transactions.

χ2-test

H0: Technical Knowledge has no influence on cashless payments in India

H1: Technical Knowledge has an influence on cashless payments in India

Observed Expected (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/ Ei

Frequency (Oi) Frequency (Ei)
39 39 0 0 0
65 39 26 676 17.33
15 39 -24 576 14.77
44 39 5 25 0.64
32 39 -7 49 1.26
Total (χ2) 34

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 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

Calculated value of χ2=34. The Critical value of χ2 at 4 degrees of freedom at 5% level of

Significance is 9.488. Calculated value is greater than Critical Value i.e., 34>9.488, Hence, H 0 is
rejected.

Table 2.10 Responses on Reluctance to Disclose Financial Information

Hinders Cashless Transactions

Sl.No Opinion Number of Respondents Percentage

1 Strongly Agree 38 19.49
2 Agree 58 29.74
3 Neutral 25 12.82
4 Disagree 52 26.67
5 Strongly Disagree 22 11.28
Total 195 100
Source: Primary Data

The data in the above table indicates that, 19.49 percent of respondents strongly agree, 29.74
percent of respondents agree, 12.82 percent of respondents are neutral, 26.67 percent of
respondents disagree and remaining 11.28 percent of respondents strongly disagree about people
reluctance to disclose financial information hinders cashless transactions.

It is concluded that Majority of the public (49.23%) felt that people reluctance to disclose financial
information hinders cashless transactions cashless transactions.

χ2-test

H0: Reluctance to disclose financial information has no influence on cashless payments in India

H1: Reluctance to disclose financial information has an influence on cashless payments in India

Observed Expected (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/ Ei

Frequency (Oi) Frequency (Ei)
38 39 -1 1 0.02
58 39 19 361 9.26
25 39 -14 196 5.02
52 39 13 169 4.33
22 39 -17 289 7.41
Total (χ2) 26.04

Calculated value of χ2=26.04. The Critical value of χ2 at 4 degrees of freedom at 5% level of

Significance is 9.488. Calculated value is greater than Critical Value i.e., 26.04>9.488, Hence, H 0 is
rejected.

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 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

Table 2.11 Responses on Financial Limits Impediment Cashless Transactions

Sl.No Opinion Number of Respondents Percentage

1 Strongly Agree 35 17.95
2 Agree 67 34.36
3 Neutral 28 14.36
4 Disagree 35 17.95
5 Strongly Disagree 30 15.38
Total 195 100
Source: Primary Data

The data in the above table indicates that, 17.95 percent of respondents strongly agree, 34.36
percent of respondents agree, 14.36 percent of respondents are neutral, 17.95 percent of
respondents disagree and remaining 15.38 percent of respondents strongly disagree about financial
limits impediment cashless transactions.

It is concluded that Majority of the public (52.31%) felt that financial limits impediment cashless
transactions.

χ2-test

H0: Financial limits have no influence on cashless payments in India

H1: Financial limits have an influence on cashless payments in India

Observed Expected (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/ Ei

Frequency (Oi) Frequency (Ei)
35 39 -4 16 0.41
67 39 28 784 20.1
28 39 -11 121 3.1
35 39 -4 16 0.41
30 39 -9 81 2.07
Total (χ2) 26.09

Calculated value of χ2=26.09. The Critical value of χ2 at 4 degrees of freedom at 5% level of

Significance is 9.488. Calculated value is greater than Critical Value i.e., 26.09>9.488, Hence, H0 is
rejected.

Table 2.12 Responses on Delayed Reimbursement in Case of Failed

Transaction Obstructs Cashless Payments

Sl.No Opinion Number of Respondents Percentage

1 Strongly Agree 37 18.97
2 Agree 62 31.80
3 Neutral 16 8.21
4 Disagree 58 29.74
5 Strongly Disagree 22 11.28
Total 195 100
Source: Primary Data

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 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

The data in the above table indicates that, 18.97 percent of respondents strongly agree, 31.80
percent of respondents agree, 8.21 percent of respondents are neutral, 29.74 percent of respondents
disagree and remaining 11.28 percent of respondents strongly disagree about delayed
reimbursement in case of failed transactions obstructs cashless payments.

It is concluded that Majority of the public (50.77%) felt that delayed reimbursement in case of
failed transaction obstructs cashless payments.

χ2-test

H0: Delayed reimbursement in case of failed transaction has no influence on cashless payments in
India

H1: Delayed reimbursement in case of failed transaction has an influence on cashless payments in
India

Observed Expected (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/ Ei

Frequency (Oi) Frequency (Ei)
37 39 -17 289 7.41
62 39 33 1089 27.92
16 39 -8 64 1.64
58 39 14 196 5.02
22 39 -22 484 12.41
Total (χ2) 54.4

Calculated value of χ2=54.4. The Critical value of χ2 at 4 degrees of freedom at 5% level of

Significance is 9.488. Calculated value is greater than Critical Value i.e., 54.4>9.488, Hence, H 0 is
rejected.

Conclusion
The findings reveal that while people are getting comfortable with cashless payments, some kind of
negative perceptions are holding back many from adopting the new system. The negative
perceptions are like security problems, poor network coverage, and lack of merchant willingness,
high transactional costs, lack of users’ knowledge on technology, defunct POS machines, delayed
reimbursement in case of failed transactions, procedures and financial limits. Convenience in use of
cashless transactions and incentive system are the positive signs for the progress of cashless
payments in India. Finally the study concludes that India may not become a cashless economy
unless the perception of the people will be rightly addressed by the government and the banking
institutions. They should pave the way for the safe and secure mean to cashless transactions.

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 Podile & Rajesh (2017). Asian Journal of Research in Banking and Finance,
Vol. 7, No.7, pp. 63-77.

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Hirschman, E.C. (I979). Differences in Consumer Purchase Behaviour by Credit Card Payment
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iii
Natarajan and Manohar (1993). Credit Cards–An Analysis, Financial Express, 14 April.
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George, P. (1995). The Card Major Lead the Way, Business World, pp. 116.
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Worthington S. (1995). The Cashless Society, Internal Journal of Retail and Distribution
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