The Effects of Cashless Transactions Small and Medium-Sized Entities

Abstract

Today, the ability to conduct financial transactions without the need of cash is essential. Improvements to current cashless payment techniques and the introduction of new, more efficient methods have resulted from research and development in this area. After conducting a thorough search of published and unpublished literature, the researcher concluded that there was a need to conduct the present study due to the paradigm shift in Indian consumer behavior, the necessity of cashless transactions, and the Government initiatives to encourage cashless transactions. So, by identifying the goals of this study and achieving them via analysis of the main data gathered from 400 legitimate replies, the current study has sought to fill in the research gaps. Five cities were selected for this research based on their high HDI (Human Development Index) scores: Ghaziabad, Gautam Budh Nagar, Lucknow, Kanpur, and Jhansi. Using Exploratory Factor Analysis and Analysis of Variance, the research aimed to determine what characteristics contribute to cashless transactions and how they vary among the chosen cities. Chi-square tests were used to examine the connection between e-service quality and customer happiness in regards to cashless transaction techniques, and rankings of cashless transaction issues and general knowledge of government activities followed. The research found that seven variables influence the prevalence of cashless transactions. The components were largely behavioral in character, and there was a notable variation between them among the chosen cities; the model explained 73% of the variance among the variables. A significant and robust correlation was found between consumers' opinions on the quality of the procedures used by e-services and their overall satisfaction. The analysis of difficulties showed that not all difficulties are of similar significance, with transaction security, password remembrance, and human mistake standing out as particularly pervasive. In addition, evidence from surveys of citizens' knowledge of government programs seems to corroborate the Indian government's secondary data, suggesting that citizens are as informed as they should be about the many projects it has launched.