Consumers Still See Value in #Cash

From paying people back to buying snacks, cash still holds a prominent place in the consumer payments landscape. Although for many consumers, the convenience of cash can’t be beat, digital wallet and plastic card loyalty and rewards programs can be enticing reasons for people to broaden their payment arsenals.

Consumers now have more choices than ever when it comes to making payments. New mobile payment apps are coming on the scene in staggering numbers, while plastic cards are enjoying a renewed vigor with the implementation of EMV technology.

Even so, consumers continue to turn (and turn often) to the old payment standby: cash. In fact, a recent CardTronics survey found cash to be the preferred payment method in a variety of remittance situations. Among those surveyed, cash was the first choice for:

  1. Reimbursing someone —78 percent
  2. Buying groceries —52 percent
  3. Purchases at convenience stores —63 percent
  4. Dining out —53 percent
  5. Tipping —78 percent

Interestingly, it’s not just older generations paying with cash. Millennials reported the strongest increase in cash usage (over a 12-month period) than any other demographic. Fifty-seven percent of Millennials said they used a wider array of payment methods over the past year than ever before. However, 45 percent also reported they are more likely to pay with cash now than they were a few years ago.

Overall, 37 percent of survey respondents said their cash usage increased over the 12-month period. Lastly, women are more likely than men (39 percent and 29 percent respectively) to pay with cash in an effort to keep their budgets in line.