An empirical analysis of customer perception towards cashless transactions: A case study of Haryana

Abstract

The payment system has evolved over a long period of time. From barter system to coin-based currency and then a system in which payments were made by paper currency. Now a new system is evolving in which paper-based payments are being replaced by electronic or digital payments. In this digital era, the advancement in electronic and communication technologies has led to the development of alternate modes of payments. The Indian Government and RBI are continuously emphasizing the cashless transactions by using digital mediums like net banking, card payments, UPI Apps etc. Despite India is witnessing robust growth in cashless transactions, people are still hesitant to adopt cashless system. The present study examines the various modes of payment and focuses on the benefits and challenges of cashless payments perceived by customers. A primary data survey through a structured questionnaire has been conducted on 314 customers in selected districts of Haryana. The findings suggested that majority of the respondents agree that cashless transactions are convenient, user friendly and can also foster economic growth by reducing corruption. Major challenges in adoption of the cashless payment system are cyber security, inadequate facilities and lack of digital literacy. The results suggested an important policy direction is required for growth in cashless payments.