Over the years, money has transformed from coins to paper cash. With the rapid expansion and exponential growth in the technology field, the use of plastic money has evolved to a great extent. Clumsy and expensive to handle coins and notes are replaced by efficient electronic payments initiated by various types of plastic cards with a tantalising prospect for the twenty first century. Plastic money was introduced in 1950’s. It is an alternative to cash. This term is used more precisely to indicate Credit cards, Debit cards and other such money cards.

Plastic money is one of those inventions that have completely changed our lifestyle, Thanks to it, that we can transact money more safely. Now, when you are to travel to a far off land, there is no need to carry hard cash with you and likewise, there is no | fear of it getting stolen. 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 privatisation and globalisation. Before the advent of Credit cards and Debit cards a major portion of the business transactions were carried on through cash. Since the cash is replaced by plastic cards it is called plastic money. Through the use of plastic money, banks and many other businesses approach the maximum customers inspite of having less physical branches. The use of plastic money has become such familiar feature of the lifestyle in the world that now it is difficult to imagine an economy functioning
without it.

Spending through plastic money has increased tremendously in India. It is now becoming a much preferred mode of payment for retail products. Over the years, Indians have been averse to plastic money. This is primarily because they believed that spending through credit is a sure shot way of getting into a debt trap or fraud. But with recent security upgradations, its usage is increasing especially among women, students and small business owners. In fact it is gaining acceptance in rural India too. HDFC Bank, the second largest private lender in the country exclaims that 25% of its Credit cards are now sourced from rural and semi-urban market.

The plastic money brings with it a huge advantage of availing a credit facility from almost everywhere without actually exchanging money or visiting the bank. Travellers are saved from the plight of carrying and securing huge cash wherever they go. With a debit or credit card they pay easily and also get the best exchange rate for currencies. Plastic money is accepted everywhere, anytime. One can even get instant cash from the nearest ATM even at the wee hours of night. Life has been made simple wherein one can buy everything online from the comfort of home. It saves a lot of travelling and searching time. One can avoid the long queues to book movie tickets/ shows well in advance using plastic money. Reservation and booking of flights, railway, hotels is just a click away. It is convenient for both the buyer as well as the seller. Infact, people are getting discounts with use of online payments. The use of plastic cards has been increased because banking industries have provided the 24×7 customer service for their customers. Security of these cards is also not a big issue these days as the banks or financial institutions have managed that too. So it is 100% safe and without any tension.

Today, people even transfer the amount of EMI or loans through cards only. However, extensive use of plastic money has posed problems for both the business community as well as for the individuals. There are numerous shops/sites which accept particular cards of a specific company only. In such a situation cash is the only way of payment for those who otherwise use cards only. The magnetic strip of a card can get worn out due to massive use.
If such a condition occurs while travelling and this is the only way of cash the consumer has, then he or she has to wait till the time a new card is received. Credit card companies charge high interest rate which has to be paid within the set time. Even with usage of Debit cards, banks levy service charges which sometimes consumers are unaware of. Theft of these cards means theft of huge amount of money altogether.

Plastic Money Essay Word Meanings for Simple Understanding

• Barter system – to trade by exchange of commodities rather than by the use of money
• Tremendous – vast, huge, enormous
• Advent – the coming or arrival
• Averse – strongly disinclined, opposed, reluctant
• Upgradation – the act or process of improving the quality of something
• Debt – the condition of owing, liable to pay
• Exclaim – declare
• Wee – very early
• Worn out – useless, tattered
• Levy – to impose or collect, demand
• Clone – reproduction, copy
• Deploying – tc bring into action
• Biometric – relating to digital scanning of the physiological or behavioural characteristics of individuals as a means of identification