The data: Consumers are relying more on cash to limit their spending as they contend with sustained cost-of-living pressures.
Research from The Harris Poll commissioned by Credit Karma found that:
Trendspotting: Cash’s appeal as a budgeting tool during downturns and a post-pandemic rebound for in-store shopping are helping reverse a yearslong decline in cash use.
Our take: The US and UK governments are working to protect cash access. The US’ Payment Choice Act and new UK legislation would both support cash-reliant consumers.
But the uptick in cash use likely won’t persist in the long term and won’t require full strategy rethinks. But the trend, particularly among digitally savvy Gen Zers, shows cash’s appeal isn’t going away.
Related content: Read our UK Consumer Payment Habits and Payment Channels and Types of Transactions reports to find how providers can better cater to shifting payer preferences.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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