The boom of digital paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More instruments that we are witnessing in recent years led some to question the current role of cashMoney in physical form such as banknotes and coins. More. In the US, the payments landscape is actively monitored by the Federal Reserve through the « Diary of Consumer Payment Choice », an annual survey of US consumers’ payment behaviours.
The results of 2015 study demonstrate that cash remains the preferred payment methodSee Payment instrument. More, especially for small-value transactions. Furthermore, consumers who make the greatest use of banknotes are a heterogeneous group in which all age categories are represented, the most significant one being the 18-24 year olds. Indeed, 38% of them prefer cash.
Wendy Matheny, manager of market analysis with the Federal Reserve’s Cash Product Office (CPO), explains that the most surprising finding was that millennials show a preference for banknotes over P2P payment apps when transferring moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More to relatives. A recent experiment carried out in Ireland reached the same result, showing that even consumers that are used to digital products rely more on traditional money in specific circumstances.
According to the survey, 89% of US consumers carry banknotes regularly. The majority of people using other means of payment admitted keeping cash as a backup, for instance if their credit card is declined. About 39.5 billion US banknotes are currently circulating worldwide, and the demand for cash is expected to continue growing over the coming years.
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