Plastic money refers to payment methods like credit cards, debit cards, and smart cards that are made of plastic rather than paper or metal. While plastic money provides advantages like purchasing power and safety, it is not widely accepted in India due to infrastructure issues, lack of government support, and cultural mindsets that are averse to credit. Younger, higher-income Indians are more likely to use plastic money, but overall adoption remains relatively low compared to more developed countries. For plastic money to succeed in India, improvements are needed in financial literacy, technology infrastructure, and addressing cultural preferences for cash-based transactions.

1. Business Environment
 Topic:- Using Plastic Money :
Not suitable for Indian mindsets.
By:- Vaibhav Jain
Gurpreet Singh
Zahabia Africawala

2. What is plastic money ?
 The "plastic" portion of this term refers to
the plastic construction of credit cards, as
opposed to paper and metal of currency.
 The "money" portion is an erroneous
reference to credit cards as a form
of money, which they are not.
Vaibhav jain

3. Using Plastic Money :
Not suitable for Indian mindsets
Introduction :
•Plastic money or polymer money, made out of plastic, is a
new and easier way of paying for goods and services.
•It includes debit cards, ATMs, smart cards, etc.
Vaibhav jain

4. BIRTH OF PLASTIC MONEY
 Credit cards were invented 60 years back.
 After the Second World War, the first plastic
charge card was invented.
 The Diners’ Club card, Introduced in New York
City in 1950, the card allowed Diners’ Club
members to eat at 27 restaurants in New York
City on credit.
Vaibhav jain

5. Types of plastic money :
 Credit cards
 Debit cards
 Master cards & Visa
 Charge cards
 Smart cards
 Photo cards
 Co-branded cards
 Global cards
 Diners Club cards
Vaibhav jain

6. Credit Cards
 A credit card is plastic money that is used to pay for
the products and services at over 20 millions
locations around the world. All you need to do is to
produce a card and sign a charge slip to pay for your
purchases.
Vaibhav jain

7. Debit Card
Vaibhav jain

8. Master cards & Visa
 MasterCard and Visa are global non-profit
organizations dedicated to promote the
growth of the card business across the
world.
Vaibhav jain

9. Charge cards
 A charge card carries all the features of credit
cards. However, after using a charge card you
will have to pay off the entire amount
billed, by the due date . If you fail to do
so, you are likely to be considered a defaulter
and will usually have to pay up a steep late
payment charge.
Vaibhav jain

10. Smart cards
 A plastic card containing a computer chip and
enabling the holder to purchase goods and
services, enter restricted areas, access
medical, financial, or other records, or perform
other operations requiring data stored on the
chip. Smart card is currently introduced by
BRTS which stands for Bus Rapid Transit
Services in Gujarat in India.
Vaibhav jain

11. Photo cards
Vaibhav jain

12. Co-branded cards
 Co-branded cards are credit cards issued
by card companies that have tied up with
a popular brand for the purpose of
offering certain exclusive benefits to the
consumer.
Vaibhav jain

13. Global cards
 Global cards allow you the flexibility and
convenience of using a credit card rather than
cash or travellers checks while travelling
abroad for either business or personal reasons.
Vaibhav jain

14. Diners Club card
 Diners Club is a branded charge card. There are
a wide variety of special privileges offered to
the Diners Club cardholder. For instance, as a
cardholder you can set your own spending limit.
Besides, the card has its own merchant
establishment tie-ups and does not depend on
the network of MasterCard or Visa.
Vaibhav jain

15. Advantages of Plastic Money :
 Purchasing Power
 Time Saving
 Extra Safety
 Credit Limits
 A need of emergencies
 Additional features
Gurpreet Singh

16. Disadvantages of Plastic Money :
 Shops using other vendors
 Less Global availability
 Worn out Magnetic strip
 Increased Debt and High Interest Rates
 Fraud
 Over Budget
Gurpreet Singh

17. Comparison with foreign countries.
 India is still lacking in terms of :
- Infrastructure
- Networking
- Professionals
 Lack of support from government.
 Plastic money gets scanned through the tax
scanner due to E-transaction.
Zahabia Africawala

18.  Implementing rules without corruption.
 Lower literacy rates compared to other
developed and developing countries.
 Educating customers.
 Language barriers breaking the channel of
communication.
Zahabia Africawala

19.  21st Century, its time for
Liberalisation, Privatisation and Globalisation.
 In banking sector there is a challenge for
Indians in terms of coping up with new
technologies.
 No matter, innovation is the key to success in
any organisation but it doesn’t responds the way
customers should.
 According to Credit Card Management
Consultancy, Indian are still averse to
credit and there has been no change in
mindset.
Zahabia Africawala

20. People using Plastic money.
Zahabia Africawala
http://www.europeanjournalofsocialsciences.co
m

21. http://www.europeanjournalofsocialsciences.com

22. Less than 100000
9%
100000 to 500000
44%
500000 to
1000000
20%
1000000 & above
27%
Income group using plastic money
http://www.europeanjournalofsocialsciences.com

23. 14%
53%
50 to 60
23%
10%
Percentage of Age group using plastic money in
India.
18 to 35
35 to 50
50 to 60
above 60
http://www.europeanjournalofsocialsciences.com

24. Conclusion
21st Century
banking has become wholly customer-
driven &technology driven by
challenges of competition, rising customer
expectations & shrinking margins, banks
have been using technology to reduce cost
enhance efficiency, productivity &
customer convenience.
Zahabia Africawala