DALLAS-Consumers continue to carry less cash in favor of more card-based payment options, according to a new study.
Approximately 41% of consumers indicated they use cash less often today than they did two years ago, according to the 2008 Student of Consumer Payment Preferences. The study was sponsored by First Data, MasterCard Worldwide, Metavante and PULSE, and conducted by by BAI Research and Hitachi Consulting. "Of those who reduced their cash use, 97% are shifting to credit, debit or gift/prepaid cards instead," said Ajay Nagarkatte, managing director of BAI Research.
Consumers in the study reported carrying an average of four credit cards but use only 2.2 of those to make purchases on any given month. Credit unions should note that the study found 75% of the Visa and MasterCards consumers reported having were issued by one of 10 issuers.
