While only 30 percent of Americans say that they prefer to buy things with cash, they still use it for the majority of small dollar purchases. The kinds of purchases made with cash tend to be food, personal care supplies and gifts. ATMs tend to be common in those kinds of retail locations, according to a blog post on ATM Marketplace.
Nearly 60 percent of all purchases of less than $25 were made with cash. Not surprisingly, this percentage declined as the average purchase size increased.
People who express a preference for cash tend to use cash for a majority of purchases up to $75. For those with a card bias, cash is used more often than cards for purchases up to $9. Given that the average purchase made by participants in the studies was $14, cash was the dominant payment method.
The data from the Federal Reserve shows the importance of cash access for debit and prepaid card users. For program managers and issuers, being able to tap into surcharge-free ATM networks will be an important part of developing a competitive program.
Overview by Ben Jackson, Director, Prepaid Advisory Services
To read the full story, go to ATM Marketplace.
