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6 Reasons Cash is still King


Small Value Transactions

Want a treat from a local convenience store? Swipe your card, select debit/credit,  enter your PIN, is this amount correct? Do you want cash back? Show your card to the cashier, verify amount again. OR you can just pay with cash. You decide what’s more convenient for you.

Specific Types of Transactions

Cash is found to be the leading payment choice for expenditure categories such as: P2P transactions, Food and personal Care supplies, entertainment, transportation, etc.

When all else fails, Pay with cash

43% of consumers prefer the debit option as their primary payment option. 30% prefer cash and 22 percent say credit cards. And roughly 50% of the time, consumers end up using their preferred form of payments. Their second choice? Cash. And those whose primary option is credit/debit cards go to cash as their back up option as opposed to another form of electronic payment (debit/credit).

Amongst Generation Y, cash is primary

 

Consumers falling between the ages of 18-24 years old prefer cash at a rate of 40%, more than any other age group. Whereas older generations prefer debit and check payments (yes checks still exist).

Lower Income Segments use cash regularly

The unbanked and under banked, or consumers with incomes less than $25,000/year prefer cash over any other option. On the other end of the spectrum are the $200,000/year households who prefer credit cards.  

It can’t be hacked

Only 39% of consumers would say they are “very confident”. With no personal information, aside from a fingerprint, stored on the tender, cash has seemed to keep up with technology as the safer payment solution.

Source: The Financial Brand 

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