Study probes consumer feelings on payment methods

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By: Wise Marketer Staff |

Posted on November 7, 2007

Consumers surveyed by Giftex Prepay do not yet foresee the decline of cash as a quick and convenient payment method, despite many early predictions concerning the rise of prepaid cards, debit cards, and contactless payments.

The study, entitled 'How we pay', observed a general leaning toward cash purchases for small amounts, with debit cards being a secondary means of payment for many consumers.

Payment trends forecast
Among the study's key findings on consumer payment preferences:

  • Consumers are not predicting the imminent decline of cash
  • Consumers aren't planning to switch to debit cards in droves, although younger and wealthier people predict greater usage of debit than those older and less affluent;
  • The largest predicted increase is in electronic payments.

Source: 'How We Pay' (Giftex Prepay, Sep. 2007)

Consumer payment preferences
In terms of everyday purchase preferences, the study observed that:

  • Cash is still king for small purchases;
  • For nearly 25% of respondents, a debit card is a secondary source of payment;
  • Age is a determining factor, with an apparent break at the age of 50.

And in terms of payment card ownership and usage:

  • 26% of respondents do not have a debit card;
  • 16% have a debit card but have never used it;
  • 20% predicted greater usage of debit cards in the future;
  • 14% predicted greater usage of credit cards in the future;
  • 12% predicted greater usage of cash in the future;
  • 82% had either purchased or received a gift card in the past;
  • 77% had purchased a gift card (rather than being given one).

Further results from the study have been published in the September issue of Global Prepay Intelligence, the journal published eight times a year by Giftex Prepay. Annual subscriptions cost 495.

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