MINNEAPOLIS, Minn.—Another report indicates that cash is taking a back seat to other forms of payment.
Following a CUToday.info report on a Moebs $ervices’ study indicating debit swipes will outnumber cash transactions in the third quarter, a new study from U.S. Bank has found that digital payments are now more popular than cash, as app-based methods become more widely supported.
Almost half of all consumers now prefer to make small transactions using an app, according to the study, which found that cash has slipped in popularity, with 45% of consumers listing cash as their preferred payment method. Digital payments are now at 47%, reported Digital Journal in its analysis.
“The number of mobile transactions being made is rapidly increasing. Consumers are visiting bank stores and ATMs less frequently. People are becoming reliant on their phones, opting to keep less cash on their person and instead rely on Apple Pay, Android Pay or a similar solution,” Digital Journal said.
Forty-six percent of survey respondents said they use cash on fewer than eight days in a month. Five percent claimed to never use cash, having entirely abandoned coins and notes for digital methods, the study shows.
Of those that do use cash, 76% keep less than $50 in their wallet. Almost half have less than $20, Digital Journal found.