WASHINGTON—While about half of consumers still use cash for small purchases, many are turning to credit cards, a new report shows.
Among U.S. adults, 16% say they usually pay with credit cards for totals under $10, according to new survey data from CreditCards.com.
That's up from the 12% who said the same in 2018. Among people who have credit cards that come with rewards, such as cash back, miles or points, the share is 26%, up from 23% last year.
“We’ve seen a steady decrease in cash and an increase in credit card use for small purchases since 2014,” said Ted Rossman, industry analyst for CreditCards.com, told CNBC.
The data are based on an online survey done in July of more than 2,500 U.S. adults. From 2014 through 2017, when the annual poll defined a “small purchase” as one under $5, the share of consumers preferring a credit card for those buys also rose to 17%, from 11%.
Debit is ‘Go To’ Card
Roughly half of all survey respondents (49%) prefer cash for purchases under $10. Among those with rewards credit cards, the share is 43%. About a third of both groups — 35% and 31%, respectively — report using a debit card as their go-to choice for covering those small buys.
A recent report from Moebs $ervices revealed that debit transactions totals in 2018 surpassed cash transactions.