Using Plastic Money (Cards) in Kathmandu Valley: Users’ Knowledge, Current Use, Challenges and Way-forward

Abstract

This study aims to understand the users’ knowledge about plastic money, its current use, challenges they faced and way-forward. Based on descriptive research design, primary data is used for the purpose as per its suitability. A structured questionnaire has been arranged with the help of KOBO and devised for the information assortments from 404 plastic money users. Results found that people who use plastic money usually work in banks and financial institutions (33.87%) and are from the nuclear family (62.62%), with income between 25001 – 50000 (56%). 95.79 % of the respondents know about plastic money, and 86.3 % have plastic money. 88 % of respondents said they feel safe while using plastic money. 40.72% of respondents have faced challenges and problems while using plastic money. The majority (79.28%) of respondents believed that using the bank's services could be solved. It can be solved by giving training (34.85%), quick response to the problem raised by users (44.32%), update technology (34.47%) and keep a good network in the ATMs (71.79%) and quick solutions to the user's problems (75.76%). This study concludes that hassle-free transactions, a low-interest rate of credit cards, attractive advertisement, and awareness of how plastic money can use help and attract users of plastic money. .

What Influences Kathmandu Valley Users' Attitudes Toward Plastic Money: Evidence from an Ordered Logistic Model

“…People in the Kathmandu valley have begun to prefer plastic money to paper money, and this trend is predicted to continue in the future (Dhungel et al, 2012) because of its easier process, secured nature, efficiency and higher convenience in conducting banking transactions. Individuals in Nepal actually consider that it is secure and easier to withdraw cash from bank Devkota et al, 2021). Information and broadcast communications have advanced in Nepalese commercial banks, Banstola (2008).…”

“…Currently there are 7,669,827 users of debit card combining users of all commercial banks, development bank, Finance companies, and 168,682 users of credit card as of mid-December,2020 (Nepal Rastra Bank, 2020). Thus, all the users of debit and credit card of Kathmandu valley are considered as population for this study and following formula was used to derive the sample size: 𝑛 = (Devkota et al, 2021) where, 𝑛 = sample size required for study, z is the standard tabulated value for 95% confidence level equals 1.96, p is the prevalence of customer satisfaction on plastic money (i.e. 50 % = 0.5) and q is the allowable error that can be tolerated (e) = 5 % which equals 1p.…”

“…According to Nepal Rastra Bank (2020), there were 7,669,827 debit cards in circulation by mid-December, with 7,379,610 belonging to grade 'A ' banks, 251,848 to grade 'B' banks, and 38,369 to grade 'C' banks wherein grade 'A' refers to the Commercial Banks, grade 'B' refers to the Development Banks, and grade 'C' refers to the Finance Companies (Paudel et al, 2018). Devkota et al (2021) found that many people still do not own a bank account, and those with an account and plastic card lack the basic understanding of how to use it. In other instances, people utilize cards to make payments outside of Nepal, but they restrict the usage within the country.…”