Demonetization and Its Impact On Adoption of Digital Payment: Opportunities, Issues and Challenges
Demonetization and Its Impact On Adoption of Digital Payment: Opportunities, Issues and Challenges
ABSTRACT
The digital payment changed the buying behavior of Indian society. It prevents black money market. It
helps the government to maintain a record of all transaction. Digital Payment Habit has changed after
demonetization. People have no other option for transaction so Indian society move slowly from cash
to digital transaction system. On the earlier, when digital payment introduce people hesitate to change
their transaction habits but after demonetization, they force to do their transaction with digital
payment. This research is an encomium on the charisma of digital payment analysis after
demonetization and its, its usability and affordability while they are affecting its preference of country.
The way consumer perceives digital transaction after demonetization, it affects a lot in the society, of
Indian culture.
Keywords: Demonetization, Transaction, Behavior, Affordability, Society
INTRODUCTION
The Digital Nation is flagship programme of the government of India with a vision to rework India
into a digitally authorized society and data economy. Faceless, Paperless, Cashless is one among
professed role of Digital India. Payments square measure created victimization payment instruments.
Cash, let us say, may be a payment instrument. Therefore too square measure checks. However, digital
payments do not seem to be one instrument however rather associate degree umbrella term applied to a
spread of various instruments employed in alternative ways. During this section, we offer some
parameters for making this definition. Since there is nobody commonplace definition of a digital or
e-payment, you must decide on a transparent and implementable definition at the beginning of any
measure exercise. The topic matter is advanced, however there square measure two key dimensions of
categorization that square measure most important: Neither term includes a commonplace definition;
however, each square measure typically accustomed mean identical thingtransfers valuable that
square measure initiated and/or received victimization electronic devices and channels to transmit the
directions. Thus during this manual they are interchangeable. Note that digitizing is usually applied to
processes except payments: Thus, a government might change its method of accounting; however still
build payments by paper (check or cash). For additional on e-payments, Narrow choice- Paper vs
non-paper: Instruments that have faith in a paper-basis for authorization, reminiscent of checks,
The demographic analysis is always important for any research, and if we talk about digital payment
than it is most important factor. So in this research a demographic analysis conducted, the
demographic analysis like age wise classification, divided into 6 groups below 18, 18 years to 23
years, 24 years to 30 years, 31 to 40 years, 41 years to 50 years and above 50 years. Gender Wise
Classification divided into two groups Male and Female, Marital status is divided into three groups
Married, Divorced/ widowed/ separated and Single, Educational Qualification divided into five
groups , Primary Secondary, Technical college ,University Degree and Others (please specify)
Income Wise Classification divided into four groups Below 50,000, 50000 to 3,00,000, 3,00,000 to
5,00,000 and 5,00,000 to 10,00,000 . the study reveals that in Age, wise classification below 18
years 11.5% respondent, between 18 to23 years 17.8 % respondent, between 24 to 30 years 24.1%
respondent, 31 to 40 years 30.4% respondent, 41 to 50 years 12.2 % respondent and above 50years
4.1% respondent. In this, research 51.1 % male respondent and 48.9 % female respondent. The
Marital status of respondent is 54.1 % married 9.3 % Divorced / Widowed / Separated and only
36.7% single. While 9.6% have primary, 18.1%have secondry, 13.3%have technical college, 53.3%
have university degree and 5.6 % have other educational qualification. In Income wise classification
74.4% respondent are below 50,000 monthly income, between 50000 to 300000 income group 18.1 %
respondent, 300000 to 500000 income group 5.6% respondent and only1.9% between 500000 to
1000000 monthly income group.
Table: 2: Payment methods most likely to use to credit your card
Responses
N Percent Percent of Cases
6a Cash 104 20.5% 38.7%
Cheque 68 13.4% 25.3%
Debit Card 172 33.9% 63.9%
Credit Card 82 16.2% 30.5%
On-line 44 8.7% 16.4%
Cash-loader 23 4.5% 8.6%
All of the above 14 2.8% 5.2%
Total 507 100.0% 188.5%
When this question asked which is the most likely payment method to credit your card , the responses
are amazing , this question asked to find the payment to fill their card , 33.9% use debit card , 20.5 %
use cash, 16.2% credit card 13.4% Cheque ,8.7 % online, 4.5% cashloader, 2.8% all the above .
This Question asked to know that the transaction method change after demonetization, 91.1% says yes,
5.9% says no and only 3.0% says only for some time.
This question asked to know that cashless transaction make habit or not , 69.6 % respondent says For
most transactions, 20.7% says for some transactions,6.7 % says for rare transaction and only 3% says
never .
Table: 7: Change device passwords, PIN of debit/credit cards
Frequency Percent Valid Percent Cumulative Percent
Valid Once in 6 months 149 55.2 55.2 55.2
Once in a year 55 20.4 20.4 75.6
Every month 42 15.6 15.6 91.1
Never 24 8.9 8.9 100.0
Total 270 100.0 100.0
This question asked to know the password change frequency of the respondent, 55.2% says once in six
months, 20.4% says once in a year, 15.6% respondent says every month and only 8.9% says never
change their password/ pin.
Table: 8: Store card details on your phone or laptop
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 158 58.5 58.5 58.5
No 112 41.5 41.5 100.0
Total 270 100.0 100.0
This question asked to know the habits of Indian society all the details save on Mobile/laptop,58.5 %
respondent save their card detail on phone/ laptop only 41.5% not save their card detail on phone/
laptop.
This question asked to know the value of time for the respondent, 57% respondent agree that
demonetization killed their valuable time in lines only 32.6% against this, 10.4% respondent have line
is no issue.
Table: 11: You think that it is difficult for illiterate to do their transaction by cards
Frequency Percent Valid Percent Cumulative Percent
Valid Yes 181 67.0 67.0 67.0
No 55 20.4 20.4 87.4
Can't Say 34 12.6 12.6 100.0
Total 270 100.0 100.0
This question asked to know that literacy effect the card transaction or not, 67% percent think that
difficult for illiterate to do their transaction by cards, 20.40% says No and 12.6% says cant say.
Table: 12: you typically (most often) withdraw money
Responses
N Percent Percent of Cases
16a At the bank teller 152 37.3% 56.3%
Automatic teller machine(ATM) 203 49.9% 75.2%
Point of Sale 23 5.7% 8.5%
Agent for Mobile banking (e.g.,
29 7.1% 10.7%
pay outlet, retail shop)
Total 407 100.0% 150.7%
a. Group
This question asked to know that the habit of withdraw money, 37.3% respondent at the bank teller ,
49.9% respondent withdraw at ATM, 5.7% at Point of sale and 7.1% Agent for Mobile banking (e.g.,
pay outlet, retail shop) withdraw money .
This question asked to know which me median use for online/ mobile payment, 36.9% use credit card,
41.8% uses debit card 13.7% uses Bank saving account /Net Banking , 4.9% not uses online/ mobile
payment.
This question asked to know the convenient time for withdraw money, 9.6 % between 6am and 10 am,
8.9% during working hours (10 am to 5 pm), 4.8% Between 5pm and 9pm, 6.7% between 9 pm and 6
am next morning withdraw money, but huge 70% cant say / any time so this response say that
respondent not wanted restriction of time for withdrawing money.
Table: 15: Do you Use/hear any of the following for transaction
Responses
N Percent Percent of Cases
21a PayTm 137 29.0% 50.7%
BHIM 102 21.6% 37.8%
FreeRechage 135 28.5% 50.0%
Mobiquik 16 3.4% 5.9%
SBI Buddy 80 16.9% 29.6%
Future Pay 3 0.6% 1.1%