In a Cardtronics article published yesterday, Brian Bailey points out how imposing cashless payments to consumers in the United States might actually backlash and hurt the businesses that adopt such policies.
Bailey’s argument is based on data Cardtronics collected in collaboration with Edelman Intelligence – an independent research company – for their yearly publication 2017 Health of Cash Study. Data shows that cash remains one of the most popular payment methods in the US, especially for lower value transactions.
The study brought to light some interesting information that might have originally sounded counterintuitive such as that Millennials still have a preference for cash (29%) compared to debit cards (26%) and mobile payments (25%) and that consumers in general prefer having the freedom to choose their payment method. In fact, the majority admitted using at least two payment methods a month (90% of respondents).
The most important variables for selecting which payment method to use is the convenience of it (i.e. cash, cards and mobile payments at top the list) immediately followed by its perceived security (84% stated their concern about data security).