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Cash Use Strong in Fragmented Payments LandscapeCardtronics study reveals 56 percent of consumers use cash as frequently as they did one year ago, and 23 percent are using it even more frequently
73 percent of millennials prefer to pay a friend or family member back with cash HOUSTON, Oct. 19, 2016 (GLOBE NEWSWIRE) -- As consumers encounter a growing array of ways to pay – from cash and cards to mobile wallets and person-to-person (P2P) apps – a ‘new norm’ is emerging as consumers embrace a blended mix of payment options in today’s fragmented payments landscape. A photo accompanying this announcement is available at //www.globenewswire.com/NewsRoom/AttachmentNg/d8bd13ce-7784-4b35-ba5f-7382d988484d More – Not Either/Or Cash has carved a prominent place within that blended mix and consumers’ everyday lives. In fact, cash is the most commonly used form of payment in brick-and-mortar stores at 89 percent – compared with 74 percent for debit cards, 66 percent for credit cards, 18 percent for store mobile apps and 17 percent for mobile wallets. The Health of Cash Study also found that 56 percent of consumers use cash as frequently as they did one year ago, and 23 percent are using it even more frequently. “Consumers today desire and demand more payment choices in their financial lives to make life easier on their terms,” said Jonathan Simpson-Dent, chief commercial officer for Cardtronics. “And while emerging digital and mobile payment technologies are on the rise, the pace of adoption is sensible. Cash continues to be commonly used at the point-of-sale and is the runaway choice for P2P payments, with 79 percent of consumers overall – and 73 percent of millennials – preferring to pay back friends and family with cash over P2P payment apps, which came in at 10 percent.” Milennials: Unlikely Drivers of Cash Usage Cash a Part of Everyday Life – Preferred for P2P, Smaller Purchases and at Convenience Stores In general, 80 percent of people agree that they use cash for smaller items and other forms of payment for larger, more expensive items. Specifically, 72 percent of people use cash for purchases under $10 and 54 percent use cash for purchases under $20. At convenience stores, consumers are almost twice as likely to have used cash in comparison to credit in the past six months, and 33 percent are more likely to use cash than a debit card. When it comes to impulse buys, 75 percent of items such as candy and gum – frequent convenience store purchases – are made with cash. “One of the trend lines that reinforces the important role of cash in the everyday life of consumers is the healthy market share of cash usage at pharmacies, grocery stores and mass merchandisers such as Target and Wal-Mart,” added Simpson-Dent. “Debit is preferred in these three locations, but cash is neck-and-neck with credit and remains the most commonly used form of payment in brick-and-mortar stores overall.” Security Concerns and Budgeting Driving Cash Preference In contrast, only 44 percent think credit cards or debit cards are safe, while about half (49 percent) think a mobile wallet is safe. The contrast is even starker when respondents were asked to identify which single form of payment method is “safe to use.” Fifty-nine percent said cash is safe while credit cards, debit cards and digital payments such as a mobile wallet drew 16 percent, 14 percent and 11 percent, respectively. Cash also plays a role in helping consumers manage their finances, with 77 percent of consumers reporting that cash helps them control their finances – and nearly half consider it the best option to do that. Among millennials, the trend is even stronger with 71 percent leaving their credit card at home when they go out to avoid overspending, and 70 percent who don’t like using credit cards because they “don’t like being in debt.” Cash Will Never Go Out of Style (or Circulation) With 79 percent of consumers claiming that they can’t imagine a world without cash, the ‘new norm’ is not a cashless society, but rather one in which consumers will continue to demand a wide variety of payment options, and cash will continue to play a role in how consumers choose to pay. For additional insight from Health of Cash Study, download the white paper and infographics at: http://www.cardtronics.com/cashsurvey2016. About the Cardtronics 2016 U.S. Health of Cash Study About Cardtronics (Nasdaq:CATM) Contact Information:
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