Findings from Gallup confirm our Cashless Consumption investing theme remains on track
Findings from a new Gallup poll confirm the continued shift in consumer payment preferences that sit at the core of our Cashless Consumption investing theme, particularly among younger respondents. No surprise as the “younger” generation tends to adapt far more readily to new technologies like those fueling mobile payments. Gallup’s poll found that fewer Americans are paying for “all” or “most” of their purchases with cash compared to just five short years ago. More specifically, in 2016 just 10 percent of respondents paid for all of their purchases with cash, down from 19 percent in 2011, a nearly 50 percent decline! From a demographic perspective, respondents between the ages of 23-34 now use cash in just over 20 percent of their transactions, down from 39 percent five years ago.
Fewer Americans say they are making “all” or “most” of their purchases with cash, compared to what they say they did five years ago — a sign of a shift toward electronic payment methods as well as mobile payment apps. While few indicate they have given up cash altogether, more Americans say they are making merely “some” of their purchases with cash.
Twenty-one percent of young Americans — aged 23-34 — say they make all or most of their purchases with cash, down 18 percentage points from the 39% who say they used cash to that extent five years ago. While the economy has absorbed noncash payments for goods and services, among all age groups younger Americans have shown the most striking drop in using cash.
Source: Americans Using Cash Less Compared With Five Years Ago
