People Aren’t Using Cash as Frequently, New Report Finds
A new survey released by U.S. Bank Wednesday has found that the frequency and value of cash transactions for most U.S. consumers has fallen in the wake of new digital alternatives.
The U.S. Bank Cash Behavior Survey found that consumers aren’t carrying as much cash with them or using it for payments on a frequent basis, a release from U.S. Bank said. On the whole, half of survey respondents reported carrying cash less than half of the time.
Furthermore, the survey found that when U.S. consumers do carry cash, nearly half keep less than $20 on hand and 76 percent keep less than $50. Forty six percent claim they use cash fewer than eight days each month; five percent say they never use it.
This likely in result of a growing trend towards using digital P2P apps like Venmo and Zelle to settle up among friends, digital wallets like the “Pays” and PayPal to make retail purchases and an increase in e-commerce driven by retailers like Amazon and Jet.com.
The survey found that just under half — 47 percent — prefer to use digital apps to make payments versus cash. Millennials and Gen Xers had the highest rates of adoption at 49 percent and 44 percent respectively, but even a third of baby boomers say they have made digital payments.
The survey was conducted via a nationally representative online panel of 2,003 U.S. adults between the ages of 19-71 with a current banking relationship and a smartphone, according to a release. The survey was conducted by Bovitz Inc., an independent research company, between June 1 and June 7, 2017.