International Research Journal of Education and Technology

The rapid growth of digital technology has significantly transformed payment systems, creating a shift from traditional cash handling to digital wallet management. This paper presents a comparative study between these two payment methods, examining transaction efficiency, security risks, user preferences, financial inclusion, and behavioural patterns. A descriptive and analytical research design was adopted with a sample of 100 respondents from Coimbatore. Primary data was collected through structured questionnaires, and statistical tools including Percentage Analysis, Chi-Square Test, and One-Way ANOVA were applied. The study reveals that 71% of respondents use digital wallets daily, while cash remains preferred for local markets and emergencies. Results show no significant association between gender and payment preference, though age significantly influences digital wallet convenience perception. The findings suggest a hybrid payment model as the dominant paradigm, with digital wallets scoring higher on convenience and efficiency, while cash retains advantages of universal acceptance and spending control.

Keywords: Traditional Cash Handling, Digital Wallet Management, UPI, Transaction Efficiency, Financial Inclusion, Payment Behaviour, Digital Payments, Cybersecurity