Cash and is Still Popular with Americans - Other News

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Credit Card Applications » News » Other » Cash and is Still Popular with Americans

Cash and is Still Popular with Americans

Cash and is Still Popular with Americans
The content is accurate at the time of publication and is subject to change.

While credit cards are popular, cash is still hot with consumers, according to a new study, estimating that 79% of Americans used cash to make payments last year, even though they could have used a variety of mobile, online and plastic payment options.

The U.S. Consumer Payments Outlook Through 2020, published by Packaged Facts, a market research firm, took a close look at payment trends. While they found that many Americans prefer using cash, even individuals who typically opt to use other methods, like payment cards and checks, frequently use cash too.

“It may be faster to swipe or tap a card. It’s arguably easier to press a button on your cellphone or keyboard. But cold hard cash still has its place, and it’s an important one that consumers not only use but also trust,” says David Sprinkle, research director for Packaged Facts.

Millennials prefer cash too

Millennials are well known for being tech savvy, but those falling in the 18- to 24-year-old demographic made up the biggest percentage of people who prefer to fork over cash when making a payment, rather than using plastic or virtual methods. Just about a quarter of the other generations said they preferred cash, compared with 38% of Millennials.
That said, across the generations cash was attractive to people for a variety of reasons, including:

  • Helping manage debt
  • Keeping their data secure
  • Maintaining their privacy
  • Avoiding payment and card fees

Is cash popular because people are having credit issues? In the study less than 10% of people said that they decided to use cash because they had issues getting a credit card.
Best uses for cash

What items or services are people using cash to purchase? The top items are:

  • Transfers and gifts to individuals
  • Government and non-profit purchases
  • Personal care items and food
  • Car related purchases

Many consumers are using cash for small day-to-day purchases, with 50% of people using it to pay for services and items costing less than $25, while 60% reported using cash for purchases costing less than $10. And many people reported that cash is their preferred backup if they can’t use a card.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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