Economics
Due to the technological revolution in financial sector, the payments in banking system have undergone a tremendous change. The Number of innovative products for making payment has developed after the privatization and globalization.Customers have showed their preference over the usageofthe plastic money generally over a period of timein thebanking process. Plastic money is an alternative to the cash or the standard ‘money’. Plastic money is referring to the credit cards or the debit cards that we use to make purchases .Various other types of plasticcards provided by banks in India are ATM cards, Smart cards. Sushma patel
e term plastic money has been used in different settings to describe a wide variety of payment systems and technologies (Basle,
1996)
When implementing an plastic money a big effort ha s been made to make an plastic money as close as possible to real, physica l money. Okamoto and Ohta (1972) presented the following six properties of an ideal electronic payment system:
•
The security of plastic money does not depend on a special physical conditions. No special hardware is necessary and money can be sent over the network.
•
Plastic money cannot be copied, modified, or double
-spent.
•
Anonymity and non-traceability. Privacy of user is protected. No-body can deduce the link between user and his payment. The customer may perform operations anonymously. •
The Protocol for plastic payment between customer a nd merchant can be performed off-line. No direct link to third party (e.g. bank) is necessary.
•
The plastic money can be transferred to any other u ser. Advantages of Plastic Money
There are several advantages of plastic money as seen in the above illustration. The advantages include
1. Eliminates the need for carrying huge cash: This eliminates the need for carrying huge load of cash which is risky and inconvenient too.
2. Risk of Loss or Theft minimized: In case of cash there is a high risk of losing cash and a chance of
e term plastic money has been used in different settings to describe a wide variety of payment systems and technologies (Basle,
1996)
When implementing an plastic money a big effort ha s been made to make an plastic money as close as possible to real, physica l money. Okamoto and Ohta (1972) presented the following six properties of an ideal electronic payment system:
•
The security of plastic money does not depend on a special physical conditions. No special hardware is necessary and money can be sent over the network.
•
Plastic money cannot be copied, modified, or double
-spent.
•
Anonymity and non-traceability. Privacy of user is protected. No-body can deduce the link between user and his payment. The customer may perform operations anonymously. •
The Protocol for plastic payment between customer a nd merchant can be performed off-line. No direct link to third party (e.g. bank) is necessary.
•
The plastic money can be transferred to any other u ser. Advantages of Plastic Money
There are several advantages of plastic money as seen in the above illustration. The advantages include
1. Eliminates the need for carrying huge cash: This eliminates the need for carrying huge load of cash which is risky and inconvenient too.
2. Risk of Loss or Theft minimized: In case of cash there is a high risk of losing cash and a chance of