MBA Thesis Proposal

THE IMPACT OF PLASTIC MONEY ON PAPER MONEY

Submitted By
MUHAMMAD MUSTAFEEZ ARBANI
1526

Supervisor
DR. BASHEER AHMAD SAMIM

IQRA UNIVERSITY
July 2008
 CONTENTS
PAGE Nos.
• Chapter I - INTRODUCTION.……………..……………………………………..3
a. Introduction………………………………………………………………..4
b. Statement of the Problem………………………………………………….4
c. Aims & Objective...…………………………………………………….....4
d. Research Question and Hypothesis………………………………………..4
• Chapter II – BACKGROUND…….…………………..…………………………..5
a. Literature Review………………………………………………………….5
• Chapter III – METHODOLOGY…………………….…….…………………..….6
a. Literature Review………………………………………………………….6
b. Population and Sampling………………………………………………….6
c. Procedure and Time Frame………………………………………………..6
• REFERENCES………………...…………………….…….…………………..….7
 CHAPTER I - INTRODUCTION

INTRODUCTION:

Paper money was first used in China around the seventh century AD, only to be outlawed
in 1455. The use of folding currency re-emerged in England in 1694. The biggest
problem which was occurring with the paper note is the wear; the paper note has very
small life due to shifting of ownership by time to time and their usage. Firstly Australia
was the first who develop the plastic note which have longer life but after wore they are
recycled for further utilizing. The plastic notes also secure the government for copying
because paper note easily copied but plastic note can not be copied.

The plastic note are same as paper but the only difference is that they are made of plastic
and more secured but in traveling and shopping people used to carry huge cash which
was very unsecured and also increasing crime rate. Then the cards are introduced in the
world to resolve the issue of carrying huge cash. Then the cards are known as Plastic
Money. The usage of plastic money(Cards) has increased in the mode of payment of huge
amount and time by time there are lots of different types of plastic money has introduced
which enhanced the features of plastic money like we can use it to anywhere in the world
and etc. Now the world is becoming globalize so every card is accepted everywhere with
the power of VISA which interconnect the different countries.
As we have the different type of card as listed below:

1. Credit Card
2. Debit Card
3. Charge Card
4. Amex Card
5. MasterCard & Visa
6. Smart Card
7. Dinners Club Card
8. Photo Card
9. Global Card
10. Co-branded Card
11. Affinity Card
12. Add-on Card

These cards are performing the function of money with different ways. These cards are
accepted worldwide, in which you can utilize your own money and also bank’s money.
The card through which you spend your own money is known as debit card. The card
through which you spend the amount of bank as loan is called credit card.
STATEMENT OF THE PROBLEM:

“The usage of paper money is decreasing or Paper money is loosing their status.”

AIMS & OBJECTIVE:

“The object of this research is to identify the factors which affect the status
of paper money and increasing the usage of plastic money & why the
plastic money usage has increased?”

RESEARCH QUESTION & HYPOTHESIS:

HO: Paper money is reliable?

HA: Paper money is not reliable?

HO: Paper money is secured?

HA: Paper money is not secured?

HO: Paper money is easy to keep & carry?

HA: Paper money is not kept & carries?

HO: Paper money has more life time?

HA: Paper money has not more life time?

HO: Paper money is not copy able?

HA: Paper money is copy able?

HO: Plastic money is reliable?

HA: Plastic money is not reliable?

HO: Plastic money is secured?

HA: Plastic money is not secured?

HO: Plastic money is easy to keep & carry?

HA: Plastic money is not kept & carries?

HO: Plastic money has more life time?

HA: Plastic money has not more life time?

HO: Plastic money is not copy able?

HA: Plastic money is copy able?
 CHAPTER II - BACKGROUND

LITERATURE REVIEW:

Australia leads the world in plastic banknote technology. Due to the problem faced with
the paper note the invention of plastic money has been introduced. The paper money has
small life cycle and can’t be recycled but as compared with the plastic money which has
long life cycle and can be recycled for further utilization in making plumbing fittings and
etc.

Plastic money is secured and can not be copied. As we know that Australia was the first
country to have all polymer banknotes, but the rest of the world is starting to follow our
lead.

There one problem arise that we cannot keep the huge amount of cash with us so they
give the idea of Plastic cards which known as plastic money accepted worldwide and we
can keep the huge amount with us while going to anywhere in the world. The plastic
money makes the society as cashless societies.

As the usage of plastic cards are increasing the number of supplier are also increased
which offering the different features. Some suppliers (Bankers) are charging the hidden
charges and high interest rate. The agent who convince the people to get the credit card
by offering the wonderful packages but in reality agent is hidden some important fact
which was disclose after the receiving of the bill.

In Pakistan first plastic money is introduced by the Habib Bank which was not get the
familiarity among people and then Allied bank’s Master card was launched which was
very popular among the customers, then different banks come up with their different form
of credit and debit cards.

As we know that there are some drawback of plastic money but there are some positive
signal of plastic money just take the example of Shoe industry; the sales of shoes hit a
record 45 per cent increase to Rs. 57 million at six reputed century old shoes outlets in
Karachi
 CHAPTER III - METHODOLOGY

Paper money was first used in China around the seventh century AD, only to be outlawed
in 1455. The biggest problem which was occurring with the paper note is the wear so to
overcome that plastic money has introduced. For that I will use the Multiple Regression
Analysis to analyze the factors which affecting the both types of money.

POPULATION & SAMPLING:

The Population is the whole Karachi in which I have selected the following area as a
sample:

 Garden
 Ranchore Line
 Gulshan-E-Iqbal
 Clifton
 Nazimabab 1

INSTRUMENTATION:

Questionnaires will be used as instrument to collect the data. It’s selected due to easy
access and we get the all information which we need in generalized form. It covers the
survey and personal interview.

PROCEDURE & TIME FRAME:

 WORK SCHEDULE PLAN:

o Literature Review One Month

o Data Collection One Month
o Analysis Two Weeks
o Final Write-up & Thesis Submission Six Weeks
 REFERENCES
1. www.Rediff.com
2. Plastic money boosts sales at 6 shoes outlets by 45 percent, Razi Syed, Daily
Times,
3. www.instecdigital.com/1/plastic.htm
4. http://ezinearticles.com/?expert=Syed_Rizwan_Ali
5. http://www.questacon.edu.au/html/assets/pdf/plastic_money.pdf
6. A durable idea. Economist, 00130613, 2/5/2005, Vol. 374, Issue 8412
7. http://www.shayonslabyrinth.com/2008/04/plastic-money-credit-cards.html
8. Plastic money trick: Credit today grows cash tomorrow, Economic Times, The
(India); 01/24/2008
9. Plastic money: Does it have a future? Pulp & Paper, 00334081, Jul98, Vol. 72,
Issue 7
10. Wood, Andrew, Chemical Week; 5/13/98, Vol. 160 Issue 18, p64, 0p, 1 color
11. The Washington Post Writers Group, No going back to paper, plastic money is in
currency 22 Jun, 2007
12. The Reserve Bank of Australia http://www.rba.gov.au
13. http://www.sbp.org.pk
14. News on Credit Union Journal, July 07, 2008
15. ANA MONTEIRO, Fine week Media 24
16. APACS WEBSITE, Plastic Cards _ History of Plastic Cards in the UK v1