Despite Apple Card hype, most Americans aren't that into contactless cards: Report
In the age of credit cards and contactless purchasing, it seems unlikely that cash is going to die out, according to a new report.
CreditCards.com published a poll Thursday that found 49 percent of American adults usually pay with cash for purchases under $10, while only 35 percent pay with debit cards and only 16 percent use their credit cards.
Cash was favored for small purchases even by those who get rewards for using their credit cards. Among that group, 43 percent preferred cash, 31 percent preferred using their debit cards and 26 percent preferred credit cards.
Participants told surveyors that they felt that paying cash or debit was faster than using a credit card for small purchases.
The survey also found that Americans aren’t really switching over to contactless cards or mobile payments, like Apple Pay.
“Contactless cards are very popular abroad, but still in their infancy in the U.S.,” Ted Rossman, an industry analyst at CreditCards.com said in a statement. “I think they’ll catch on here because most retailers can now accept them and most card issuers are delivering contactless cards to their customers.”
Only about 39 percent of people who were polled have used mobile payments and only 14 percent have used contactless cards, CreditCards.com found.
The survey also found that 53 percent of people with rewards credit cards said they don’t have a contactless card and 22 percent weren’t sure if they did.
However, the biggest group of people using mobile payments was millennials. The survey found that among people with rewards cards, 61 percent of millennials use mobile payment services while only 44 percent of Gen-Xers and 24 percent of baby boomers use them.
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Crediful CEO Chane Steiner said in the report that people might feel more comfortable with cash or debit cards because they might be less familiar with newer technology.
“And don’t forget that many consumers might have reservations about mobile payment security — and fears about losing or breaking their devices,” he said.
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