Now a day both internet and technology has covered the world like a spider web. The revolution in the technology has brought drastic changes in the transaction system. With these changes money has changed its form from cash to cashless. These days’ people prefer to make transaction by using plastic money rather than the paper money because of its convenience, safety and mobility. Day by day numbers of plastic money users are increasing due to the digitalization. These changes have made people’s life easier. We have conducted this study by using the response of 350 people. With their response we have analyze the people’s preference and the reasons for using plastic money over paper money. The study reveals that peoples in Puttur use more plastic money and they have agreed that plastic money has life in future because it is in the stage of replacing the paper money.