Another report has come out showing the persistence and utility of cash. The 2015 Diary of Consumer Payment choice shows that cash is the most commonly used form of payments.
Cash was used in nearly one third of all transactions in 2015, down from 40% in 2012, the last time the study was conducted. Even with all the attention on newer options such as Apple Pay and Venmo, consumers used electronic payments in just 11% of transactions, though that’s grown from 7% since the previous study. Debit cards account for 27% of all transactions and credit cards are used in 21%. Together, credit and debit cards make up for 48% of all transactions, up 6% from 2012.
Payments companies that want to be successful should not be fighting to eliminate any form of payment. Consumers have a variety of options and find that depending on the transaction, some payment types are better than others. Instead, companies should develop cash access and cash acceptance strategies to accommodate shoppers and make full use of the advantages that cash can provide.
Overview by Ben Jackson, Director, Prepaid Advisory Service at Mercator Advisory Group