Friction Cited as Primary Reason Consumers Reach for Cash for Small Transactions
9-19-2018
For many consumers, there’s just something that feels more convenient about pulling out banknotes and bills to pay for small ticket items over a credit or debit card, a recent survey from CreditCards.com indicates.
The survey found that the number one reason consumers avoid credit for small purchases is that it’s easier or quicker to use other payment methods – primarily cash. The plurality of respondents (40 percent) said friction in the payments experience meant credit cards took a backseat. Men tend to be more impatient with credit transactions, with 45 percent answering indicating friction as the top obstacle to using credit compared to 35 percent of women.
Just under 50 percent of adults surveyed indicated cash was their preferred payment method for transactions under $10, followed by debit cards at 30 percent and credit cards at 23 percent. However, young millennials were strong supporters of using credit over cash. In fact, young millennials aged 18-27 were much more likely to prefer credit (41 percent) for sub-$10 transactions, versus only 24 percent for cash.
Still, reducing friction is a key focus for payments technology companies in providing convenient, secure payment solutions. ETA members companies are at the forefront of contactless cards, mobile payments, biometric authentication and other innovations that reduce friction at the point-of-sale.
The CreditCards.com report surveyed 1,002 adults living in the continental United States by phone in late August through early September, with a margin of error of +/- 3.72 percent. Click here to read more.
About ETA
The Electronic Transactions Association (ETA) is the world’s leading advocacy and trade association for the payments industry. Our members span the breadth of significant payments and fintech companies, from the largest incumbent players to the emerging disruptors in the U.S. and in more than a dozen countries around the world. ETA members make commerce possible by processing approximately $56.75 trillion annually in purchases and P2P payments worldwide and deploying payments innovation to merchants and consumers.
ETAs membership spans the breadth of the payments industry to include independent sales organizations (ISOs), payments networks, financial institutions, transaction processors, mobile payments products and services, payments technologies, and software providers (ISV) and hardware suppliers. For more information, visit electran.org.