What’s in Your Wallet? [And yes, we are borrowing this question from Capital One.] Cash, Credit Card, Debit Card? An interesting question, right? In this post, we look at U.S. and worldwide payment trends.

Cash used to be king — now? As reported by the Federal Reserve Bank of San Francisco (FRBSF), in 2012, cash represented 40 percent of U.S. consumer spending. By 2016, this figure had fallen to 31 percent. Furthermore: “Most consumer payments are for small transactions. About 60 percent of in-person payments under $10 are made in cash, compared to 20 percent of in-person transactions for $25 or more.” As online and mobile shopping grow, cash use will drop even further.

Firms of all types and sizes need to aware of these trends. AND plan accordingly.

These are two consumer-oriented posts on credit usage: Do YOU Understand YOUR Credit Report? and Gender and Credit & Earnings: Is It a Level Playing Field?


What’s in Your Wallet? Cash, Credit Card, Debit Card?

Consider these FRBSF infographics.

(1) Estimated aggregate volume and value shares of all payments (including bill payments and non-bill payments). Includes cash, check, credit cards, debit cards, other electronic payments made through bank accounts, and other payments.

What's in Your Wallet? Cash, Credit Card, Debit Card?

(2) Cash used most often for payments less than $25. Credit and debit cards used more often for amounts between $25 and $100. Checks and electronic payments used more often for amounts of $100 and over.

What's in Your Wallet? Cash, Credit Card, Debit Card?

(3) Greater reliance on cash by households with an annual income of less than $50,000 per year.

What's in Your Wallet? Cash, Credit Card, Debit Card?

(4) Those under 35 years-of-age less apt to use cash than those over 35.

What's in Your Wallet? Cash, Credit Card, Debit Card?

The Most Cashless Countries in the World

As Banking Technology asks:

“What countries among the 20 largest economies are adapting quickest to using cashless systems like phones and contactless cards? New research (and nifty infographics) from global trading site Forex Bonuses reveals that Canada takes the top spot, narrowly edging out Sweden for the top position.”

Cashless Countries Around the World


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