Awareness and Participation of Small Retail Businesses in Cashless Transactions: An Empirical Study

Subho CHATTOPADHYAY, Payal GULATI, Indranil BOSE

Abstract


The ambitious drive of the Government of India to transform the Indian economy from a cash-based economy to a cashless economy was contingent in a big way on the people’s acceptance of cashless modes of transactions, adaptability to cashless transactions and change in the transaction behavior of consumers and retailers, besides several other factors. As the small retailers form the bulk of the Indian retail sector, their ability to go cashless, their psychological preparedness and their willingness to adopt cashless transactions become an issue of prime importance in the movement towards cashless. The present study was conducted to assess the awareness of the small retailers regarding the cashless transaction and its modes, to understand their apprehensions and perceived convenience in dealing with a cashless system of the transaction and to measure their extent of participation in cashless transactions. The study was conducted in Bareilly, an important city in the state of Uttar Pradesh, with a population of around ten lakhs. Data for the study was obtained from 117 retailers using a structured questionnaire. The study found that though a significant number of small retailers were aware of the possibility of the cashless transaction and its modes, their frequency of engaging in cashless transactions was abysmally less as compared to that of cash-based transactions. They were found to believe that dealing with cash was easier in comparison to handling cashless transactions. Fear of losing money due to the faulty transaction was found to be a major deterrent in going cashless amongst the small retailers surveyed during the study


Full Text:

PDF

References


Anand, N. (2016). Vodafone set to launch payments bank by March. Business Standard. Retrieved from https://www.business-standard.com/article/companies/vodafone-set-to-launch-payments-bank-by-march-116121300822_1.html.

Anchor, N.P., and Robert, A. (2013). Shifting Policy Paradigm from Cash Based Economy to Cashless Economy: The Nigerian Experience. Afro Asian Journal of Social Sciences, 4(4), 1-16.

Arun, G.M., and Punj, S (2016). Banking on E-Cash. India Today. Retrieved from https://www.indiatoday.in/magazine/from-india-today-magazine/story/20170102-digital-economy-cashless-transactions-online-banking-mobile-banking-digital-currency-e-wallets-830074-2016-12-22.

Banik, N., and Padalka, M.S. (2016). India’s Demonetization: Time for a Digital Economy. The Diplomat. Retrieved from http://thediplomat.com/2016/12/indias-demonetization-time-for-a-digital-economy

Chahal, H., Sahi, K.G., and Rani, A. (2104). Moderating Role of Perceived Risk in Credit Card. Journal of Indian Business Research, 6(4), 286-308.

Gajjar, N. (2016). Black Money in India – Present Status and Future Challenges and Demonetization. International Journal of Advance Research in Computer Science and Management Studies, 4(12), 47-54.

Mahajan, P., and Singla, A. (2017). Effect of Demonetization on Financial Inclusion in India. International Journal of Science Technology and Management, 6(1), 338-343.

Reserve Bank of India (2016). Annual report. Retrieved from https://rbi.org.in/SCRIPTs/AnnualReportPublications.aspx?Id=1208.

Shah, A.M., Eisenkraft, N., Bettman, J.R., and Chartrand, T.L. (2016). “Paper or Plastic?”: How We Pay Influences Post-Transaction Connection. Journal of Consumer Research, 42(5), 688-708.


Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 Management Dynamics in the Knowledge Economy

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

© Faculty of Management (SNSPA)

Creative Commons License
This work is licensed under CC BY-NC

The opinions expressed in the papers published are the authors’ own and do not necessarily express the views of the editors of this journal. The authors assume all responsibility for the ideas expressed in the materials published.

ISSN 2392-8042 (online)