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.