November 04, 2016

Fed: Cash declining but still popular

A survey from the Federal Reserve's Cash Product Office found that while cash is still the most popular form of payment, it is declining in popularity. According to the survey, cash was used in 40 percent of purchases in 2012 but just 32 percent of purchases in 2015.

The 2015 Diary of Consumer Payment Choice found that cash is particularly popular for small purchases, and it is used more than 60 percent of the time for a purchase of less than $10. According to the survey, debit cards are used for 27 percent of transactions and credit cards for 21 percent.

Electronic payments grew from 7 percent in 2012 to 11 percent in 2015, and they tend to be used for pricier purchases. In terms of total payment value: cash represented 9 percent of money spent in 2015; debit and credit cards represented 34 percent; and electronic payments represented 35 percent.