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Cash usage depends on your personality

Categories : Cash is universal
August 31, 2016
Tags : Budget control, Efficiency, Trust, Universality
Studies show that cash use does not depend on the region or on the consumer's age, but rather on his personality type.
Communication Team / Equipo de Comunicación

According to a report conducted by Australian Payments Clearing Association (APCA), 59% of Australian transactions were made in cash in 2014. Forecasts suggest that the use of cash will decrease to 43% in 2016 as new payment methods such as mobile apps or contactless cards are becoming more popular.

Cash remains the leading payment method in many countries worldwide, regardless of their region or development level. Indeed, a study led by PWC in 2015 showed that 86% transactions were made in cash in Japan, 90% in China, 94% in South Africa and 98% in India. Besides, cash still accounted for 55% of transactions in the US – home to Apple Pay and Google.

Contrary to what one might think, cash use does not depend on the consumer’s age. The Australian Cash Consumer Insights study, carried out by the Retail Doctor Group and commissioned by Glory Global Solutions, found that 30% of consumers under 35 declared to “strongly” prefer cash over other means of payment. The reason for this is that cash is associated with sociability and fun, and, given its universal acceptance, it’s more convenient when travelling. Young people are also more likely to carry small amounts of cash and visit ATMs regularly to better control their finances. The study also focused on consumers’ personality type. Young active “adventurers” accounted for the highest rate of cash usage, followed by “hedonists”, who reported liking the feeling of carrying cash. The “disciplined” population segment explained that cash is helpful for managing one’s finances and is easy to use.

Personality types determine where and how people are using cash. Such data might help retailers better target their audience and make them adapt their cash management strategy, for example by offering cash-out and recycling services.

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