Two-fifths of US consumers (40%) still prefer to use cash and just under 40% of US businesses (39%) maintain a cash-only policy for purchases of less than US$20 “despite the availability of technology-driven forms of payment such as credit cards, debit cards and mobile wallets,” a survey by a division of WSFS Bank[1] has found.
The survey also shows that more than half of respondents (51%) believe that “using cash helps them budget their money”, with that figure rising to 58% of the Generation Z demographic (aged 18-24), “52% of whom cite cash as their preferred payment method”.
“However, many respondents said they cap their cash purchases at $31, as 54% only carry $1-$50 in cash on them,” the researchers say.
“When asked what they use cash for, the most popular uses were: leaving tips (48%); purchasing fast food (44%); purchasing candy and snacks (37%); purchasing coffee (32%) and paying for gas (27%).”
“With many small purchases being paid for with cash, the majority (71%) of financial decision makers agreed that there is nothing worse than when someone pays for a small purchase with a big bill, like a $50 or $100,” the researchers add.
The survey of 1,500 US consumers aged 18 and over and 500 financial decision makers was conducted on behalf of WSFS’s Cash Connect[2] cash logistic services division in June 2021.
The findings come as a forecast by Juniper Research[3] published in July predicted growth of almost 300% in the total value of contactless transactions in the US over the next five years, while the 2021 Debit Issuer Study[4] published in August identified a six-fold year-over-year
