Many of us spend so much time staying up-to-date with the latest new, new thing in payments, we sometimes forget the current reality. That reality was highlighted in a recent survey conducted by Bankrate. Their Money Pulse survey of 1,000 adults in the U.S. shows a strong preference for old-fashion cash and debit cards as the preferred payment type for holiday purchases:
When it comes to holiday spending, cash will be king this year, according to the latest Bankrate Money Pulse survey. Seven in 10 Americans say they will use either cash (39%) or a debit card (31%) for most of their holiday purchases. Just 22% say they will put the bulk of their holiday spending on credit cards.
The demographics on payment type are well defined. Older, wealthier individuals will reach for their credit cards, while millennials will avoid credit like the holiday fruit cake:
Americans with household incomes of less than $30,000 were most likely to say they will use cash for most purchases (53%), while 21% of those with household incomes greater than $75,000 say cash will be a first option. Indeed, high earners were the most likely wage demographic to indicate they will use credit cards for most of their holiday purchases. That’s not the case for millennials. Just 14% say credit cards will be their No. 1 choice.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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