Younger Consumers Prefer Debit and Cash over Credit Cards

People under the age of 35 favor debit cards and cash over credit cards, according to an Auriemma Consulting Groups survey. Forty-four percent of younger consumers said they have no interest in using credit cards as their primary mode of payment. All age segments surveyed said they prefer cash over other types of payment because it is more convenient. ACG’s Matt Simester says younger people have been trained to think about debit cards but do not really value credit as highly. “When you compound this with the difficulty younger consumers have had in getting credit, there is a clear need to develop products specifically for the younger segment of the population,” he says. To better meet customer needs, these products should offer interest-free periods, rich rewards programs, and fraud guarantees.

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