Despite advances in mobile payments, cash is still king

A new study from marketing agency, Hill Holiday, examines current preferences, habits, and attitudes among US consumers to going cashless and cardless, including adoption rates and barriers for mobile and app-based payments.  It found that far from mobile money representing a panacea for every day transactions, a cashless culture is still some way off.

  • Cash and cards are far from dead. 76% of respondents still carry cash daily while 55% hate the idea of life without cash.
  • We’re still new at mobile payments, but younger consumers are leading the way. 58% of those using mobile payments have only started in the past year and 45% of those over 40 have never used mobile payments; while 22% of those under 40 use it daily.
  • Significant barriers to going cashless remain. 45% say there is no reason to use mobile payments while 63% say clear and consistent visual cues around mobile payment options are needed at the point of purchase.

The user experience isn’t quite there yet for mobile and app-based payments, and many businesses still struggle with the transaction technology. Another surprise: social pressures surrounding cashless payment were a recurring theme. Brands still have a lot to learn about which consumers will go cashless, and how they can help them get there.

Katherine Schilling, Strategy Director for Hill Holliday