There are between 60 million and 100 million cash-preferring consumers in the U.S. That’s about the population of the nation’s four largest states – California, Texas, New York and Florida – combined. In April, the Federal Reserve released a paper called the “Diary of Consumer Payment Choice” (DCPC) that featured some startling results. The study found that cash remains the most popular mode of payment for several expense categories, including including food, transportation, government payments, and vehicle-related spending. Other key findings include: Out of the 59 payment transactions the average consumer makes, 23 of them are done using cash. Cash dominates across spending segments for purchases under $10. By volume, cash makes up the single largest share of consumer transaction activity at 40%. By value, electronic payments lead the pack at 27%. By preference, debit (de facto cash) is the most preferred payment instrument, followed by cash. Beyond the aforementioned spending patterns, consumers also use cash to pay for bills. In fact, for consumers making under $25,000, cash is the most popular way to pay bills. This is also a significant chunk of the population — based on the U.S. Census Bureau 2011 report, an estimated 43% of US adults […]
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