Report: Most Consumers Still Prefer Cash But Online and Mobile Alternatives Gaining
Aug. 3, 2015
While cash is still king, U.S. consumers are increasingly likely to use alternative payment methods. A new report from third-party prepaid card provider Blackhawk Network found 93 percent of consumers used cash in the last year. Interestingly, the same number of respondents (68 percent) reported using checks as said they used debit cards and 67 percent used credit cards. While cash and checks still top the list, however, their use is dwindling, according to those polled. Sixty-eight percent said they are using alternative payment methods including PayPal and mobile wallets more than last year.
“We found people were still very comfortable with traditional payment methods, but they are also getting very comfortable with new payment methods,” Teri Llach, chief marketing officer at Blackhawk Network, told CardNotPresent.com. “That means consumers are saying they will pick the best option based on what I’m doing, where I am, how big a rush I’m in or if I’m using a device.”
Llach said the research tracks with the overall growth in and desire for online, mobile and digital payments but that those forms of payment will not overtake cash, which consumers identified as the most convenient payment type, for some time. And, at any rate, it’s not about one payment type or another dominating.
“Our findings prove that payments is not either/or when it comes to legacy payments versus emerging products,” Llach said. “It’s really about convenience and providing a mix of options.”