QoD: Rank order these payment types from most to least used by adults: Cash, Credit Card, Debit Card
Thanks to Julius Prezelski for pitching this idea and pointing out a new research study from the Federal Reserve.
- Debit cards 28%
- Cash 26%
- Credit cards 23%
- Does this match your experience?
- What purchases are you most likely to use cash? use debit cards?
- Do you think these answers vary based on your age? If you polled your classmates, what do you think the answer would be?
Behind the numbers (Federal Reserve 2019 Findings from the Diary of Consumer Payment Choice):
The 2019 Diary of Consumer Payment Choice (Diary) highlights findings from the fifth Diary study conducted by the Federal Reserve. A demographically-representative sample of 2,873 individuals participated in the study and reported all of their payments and transactions over three consecutive days, staggered throughout October 2018.1 The high-level findings are:
- Consumers used cash in 26 percent of transactions, down from 30 percent in 2017
- Debit cards were the most used instrument, accounting for 28 percent of payments
- Credit cards accounted for 23 percent of payments, a 2 percentage point increase from 2017
- Cash was used heavily for small-value payments, representing 49 percent of payments under $10
- The share of cash use among individuals under 25 years old is the highest of any age group
- In-person payments accounted for 73 percent of all transactions. Participants used cash for 35 percent of in-person payments
Make decisions on how you might pay for various purchases with this NGPF Project: Payment Decisions