Infographic on Consumer Preferences and the Use of Cash
Did you know that consumers who generally prefer debit or credit cards are 49 percent likely to use cash for purchases less than $20? The infographic below is based on a working paper by the Federal Reserve Bank of San Francisco’s Cash Product Office. It shows how US consumers prefer to pay for everyday things, and how their preference and the purchase amount affect their likelihood to use cash.
CASH: Americans still like it.
Understanding how consumers use cash is vital for the Federal Reserve to estimate the future demand for cash in a dynamic payment landscape.
The Federal Reserve’s 2012 Diary of Consumer Payments Choice study found that even though US consumers prefer to pay for everyday things differently, cash is still popular.
Credit Card * 43%
With almost 1/3 of consumers preferring cash, no wonder U.S. currency in circulation continues to rise.
* The 5% is attributed to other payment types.
Even for consumers who prefer cards,
60% for those who prefer debit cards
55% for those who prefer credit cards
Here is how consumers with different payment preferences chose to use cash.
|< $10||< $20||$20-$50||< $70|
|Debit card users||53%||51%||13%||8%|
|Credit card users||55%||49%||9%||6%|
Because cash is the preferred payment method for small value transactions, and the majority of transactions are low value transactions, cash is used 46 percent of the time for transactions.
Download the Cash Infographic (pdf, 508kb)