HOUSTON -- In spite of the fact that people have access to and use a greater variety of payment methods, cash remains the most widely used and most frequently selected method for making all sorts of payments, according to findings from the latest Cardtronics Inc.-sponsored survey.
Nearly four out of five consumers select cash when they need to pay someone back. From paying people back to convenience-store purchases to tipping, cash retains a prominent place in the consumer payments landscape.
“Cash is king for many consumers, even in today’s expanding universe of digital payment options,” said Tom Pierce, chief marketing officer for Cardtronics. “Our survey data clearly shows that in a competitive payments environment, cash is a predominant payment form and sits atop multiple spending categories.”
The findings come from a survey of more than 1,000 U.S. adults, with data also uncovering surprising facts about how millennials use cash.
The survey asked, “What type of payment have you used in the past year for the following situations?” And the answers revealed that while consumers are using a mix of payment methods, time and again, cash is No. 1 in a variety of scenarios, including:
- Paying someone back. Cash: 78%; runner-up, check: 18%.
- Convenience-store purchases. Cash: 63%; runner-up, debit: 41%.
- Snacks away from home. Cash: 67%; runner-up, debit: 37%.*
- Grocery store. Cash: 52%; runner-up, debit: 51%.
- Small business. Cash: 49%; runner-up, credit: 43%.
- Restaurant. Cash: 53%; runner-up, credit: 48%.
- Tipping. Cash: 78%; runner-up, credit: 27%.
In addition to identifying where and when cash continues to play a prominent role in consumer spending, the Cardtronics survey findings also provided insights into how different demographic groups use cash.
“There is a myth in the marketplace that millennials have abandoned cash in favor of mobile and other digital payments. It’s simply not true. What we found exposed the myth, with millennials embracing cash usage along with new payment methods. Millennials take an open-minded view of payments and cash plays a pivotal role in their payment choice mix,” said Pierce.
While more than half (57%) of millennials reported using a greater variety of payment methods than before, nearly half (45%) of that group also said that they’re more likely to pay more with cash now than they did a few years ago. In fact, millennials report increased cash usage at the greatest clip compared with all other survey respondents.
Among all adults, 37% said their use of cash had increased. The survey also found that women are more likely than men (39 vs. 29%) to use cash to help stay on budget.
Houston-based Cardtronics provides services to more than 190,000 retail ATMs in North America and Europe.
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