Cold, hard cash is still the easiest way for most consumers to pay for small-ticket goods, especially as merchants try to deflect the rising costs of accepting debit payments.
While 65% of consumers used a credit or debit card for a purchase over the past seven days, nearly 80% used cash, according to a new report from Javelin Strategy & Research.
And if banks tried to impose debit card fees (as Bank of America tried unsuccessfully to do this fall), 32% of consumers said they’d start shelling out cash to buy things. Compare that with the quarter of people who would turn to a credit card instead.
Part of cash’s popularity comes at the urging of retailers and stores who have long encouraged their customers to use the payment method because it doesn’t come saddled with extra fees.