You are on page 1of 43

Cashless

Ecosystem
Agenda

◎ About Topic

◎ Problem Statement

◎ Analysis

◎ Summary

8th November
2016 brought a major change in
economic environment which pushed
India towards cashless future.
Demonetizing the high value
currency notes of – Rs.500 and
Rs.1000
What is
cashless
economy?
A cashless economy is one in which
all the transactions are done through
electronic channels such as
debit/credit cards, Immediate
Payment Service (IMPS), National
Electronic Funds Transfer (NEFT)
and Real Time Gross Settlement
(RTGS).
Why cashless economy?
Reduction of Development & Improvement in
Physical currency Modernization efficiency
The circulation of physical Electronic based transaction The policy also aims at
currency is minimum. seeks to drive the development improving the effectiveness of
and modernization of India’s monetary policy, managing
payment system. inflation in the economy,
maintaining stable pricing
system.

Black money Improved Discouraging


Cash less economy helps in
curbing generation of black
Transparency crimes
money. An increased use of digital Another benefit of cashless
payment instead of cash would economy is that it discourages
enable a more detailed record of cash related robberies and other
all the transactions which take cash-related crimes.
place in the society, allowing
more transparency in business
operations and money transfers
which reduce tax avoidance and
money laundering
Challenges in cashless economy?
Dependency on Rural Population Resistance to
About 90% of the workforce,
cash which produces nearly half of the
taxes
Large part of the population is output in the country, works in Merchants prefer not to keep
still outside the scope of Net rural sector It will not be easy for records in order to avoid paying
banking like use of credit or debit this sector to become cashless. taxes and buyers
cards, making transactions using find cash payments more
mobile phones, and using the convenient.
internet to pay bills they are not
in a position to reduce
its dependence on cash.

Telecom network Security and ease Attitude &


The availability and quality of Service providers will have to
telecom network will play an constantly invest in technology in
Perception
important role. People face order to improve security and Difficulties in changing attitudes
difficulties in making electronic ease of transaction. People will and perception of people
payments even in metro cities only shift when it’s easier, certain towards moving digital
because of poor network. and safe to make cashless payments. India is dominated by
transactions. small retailers. They don’t have
enough resources to invest in
electronic payment
infrastructure.
This research for

◎ A cashless eco-system is really accepted in India.


Signals for research
◎ Indian really aware with all the modes of a digital
transaction?

◎ Cause to go cashless?
e.g. Security, Carrying bulk cash is difficult, to
support government initiative.

◎ Do man and women both thinks different about


banking improvement?

◎ What different age groups thoughts about


cashless?
Missing Value Analysis
Descriptive
Analysis
Overall Satisfaction
Overall Satisfaction
T Test
Null Hypothesis :
Male and Female both have different opinion about Improved
bank experience as well as carrying bulk cash in pocket.
Null Hypothesis :
Male and Female both have different opinion about Improved bank
experience as well as carrying bulk cash in pocket. Sig >0.05

Null Hypothesis Rejected


Male and Female both have same opinion about Improved bank
experience as well as carrying bulk cash in pocket.
Chi-Square
How different age groups thought, that cashless ecosystem is secure.
How different age group think that cashless ecosystem is secure.
Chi-Square
People with different monthly transaction capacity relate with
overall satisfaction.
How much people are conformtable for monthly transaction
ANOVA
(Analysis of Varaiance)
Null Hypothesis :
Mentioned Payment
Digital Modes used
equally by people.
UPI AEPS

USSD
2.
Factor Analysis
Comparative Analysis
Which
questions point
to acceptance
of cashless
ecosystem
Here we determine the factors that
are in favor of cashless ecosystem
Descriptive Statistics

Mean Std. Deviation Analysis N


Avoid bulk cash in pocket 6.18 .782 49

Aceept digital money 5.61 .862 49

Improved Bank Experience 5.94 .801 49

Secure 5.18 .950 49

Eco friendly 5.88 .666 49

Only cases for which Overall satisfaction = Very much agree are used for this analysis
phase.
Correlation Matrix

Improved
Avoid bulk cash Aceept digital Bank Eco
in pocket money Experience Secure friendly
Correlation Avoid bulk cash in 1.000 .015 .384 .038 .244
pocket
Aceept digital money .015 1.000 .176 -.115 .315

Improved Bank .384 .176 1.000 .289 .337


Experience
Secure .038 -.115 .289 1.000 .201

Eco friendly .244 .315 .337 .201 1.000

Only cases for which Overall satisfaction = Very much agree are used for this analysis
phase.
KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .535

Bartlett's Test of Sphericity Approx. Chi-Square 26.514

df 10

Sig. .003

Only cases for which Overall satisfaction = Very much agree are used for this analysis
phase.
Total Variance Explained
Total Variance Explaineda
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Component Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 1.844 36.888 36.888 1.844 36.888 36.888 1.801 36.025 36.025
2 1.147 22.936 59.824 1.147 22.936 59.824 1.190 23.799 59.824
3 0.935 18.699 78.523
4 0.614 12.279 90.802
5 0.460 9.198 100.000
Extraction Method: Principal Component Analysis.

Only cases for which Overall satisfaction = Very much agree are used for this analysis
phase.
Scree Plot
Rotated Component Matrix

Component

1 2
Avoid bulk cash in pocket .610 .025

Aceept digital money .183 .864

Improved Bank Experience .803 .043

Secure .567 -.531

Eco friendly .655 .400

• Extraction Method: Principal Component Analysis.


• Rotation Method: Varimax with Kaiser Normalization.a,b
• Rotation converged in 3 iterations.
• Only cases for which Overall satisfaction = Very much agree are used for this analysis
phase.
Rotated Component Matrix

Component

1 2
Avoid bulk cash in pocket .610 .025

Aceept digital money .183 .864

Improved Bank Experience .803 .043

Secure .567 -.531

Eco friendly .655 .400

• Extraction Method: Principal Component Analysis.


• Rotation Method: Varimax with Kaiser Normalization.a,b
• Rotation converged in 3 iterations.
• Only cases for which Overall satisfaction = Very much agree are used for this analysis
phase.
Regression

As model , To understand Which question is merely help to understand cashless eco system
is really accepted
Regression
Regression
Regression
Regression
Regression
Regression
Summary
◎ Indian people feels secure, banking experience is
improved as well as they accepts money in digital
format.

◎ Indian people prefer major modes for money


transaction such as UPI, point of sale and internet
banking
Summary
◎ Indian people transact monthly above 11000/- Rs
using cashless.

◎ Senior citizens feels less secure about cashless.

◎ Younger people strongly feels secure about


cashless
Conclusion
◎ Indian people feels secure, banking experience is improved as
well as they accepts money in digital format.

◎ Indian people prefer major modes for money transaction such


as UPI, point of sale and internet banking.

◎ Indian people transact monthly above 11000/- Rs using


cashless.

◎ Younger people strongly feels secure about cashless.

◎ A cashless eco-system is really accepted in India.