Debit cards gaining on cash for small purchases
Millennials most likely to pay with plastic / People over 50 strongly prefer cash
About six in 10 credit cardholders typically pay cash for purchases of less thanfive dollars, according to a new CreditCards.com report. 27% prefer debit cards and 11% normally use a credit card for a small purchase.
However, cash usage is down seven percentage points from 2014. Debit cards are up five percentage points and credit cards are unchanged.
There's a clear generational divide: 41% of people under age 50 prefer cash for small transactions and 40% like debit. Among those 50 and older, cash is the runaway winner (74%). Millennials are the most likely to use debit (46%) and credit cards (18%).
"I'm confident that debit and credit cards will gain even more market share in the years to come," said Matt Schulz, senior industry analyst, CreditCards.com. "Credit cards offer better protection against identity theft and fraudulent charges, so I think they're the best choice."
- 70% of rural credit cardholders prefer using cash for small purchases versus 59% of urbanites and 54% who live in the suburbs.
- The vast majority of cardholders in the Northeast and Midwest prefer cash compared with just 46% in the West.
- As annual household income increases, the likelihood of using cash decreases.
For more information go to www.creditcards.com.