BOSTON (10/24/14)--Cash registers may be running a little thin lately, as a new report shows that cash usage is continuing to drop, making way for the growing popularity of debit cards (Pymnts.com Oct. 23).
The report, administered by the Federal Reserve Bank of Boston, found that between 2010 and 2012, the number of cash payments fell by 10%, while the overall share of cash payments dropped by 26.8%.
Though, the number of cash withdrawals in addition to the dollar value of cash holdings by consumers increased in 2012, the report found.
While debit still appears the most popular choice for making payments, credit also seems to be gaining ground.
"Debit cards remained the most popular payment instrument among consumers in 2012, accounting for 29.9% of their monthly payments," according to the report (Pymnts.com). "But credit and charge card payments experienced the largest increase, reaching 21.6% share in 2012--surpassing its highest level recorded."
A new report by TSYS also details that debit-card use has actually dropped, in large part thanks to consumer fears over security (News Now Oct. 21).
But cash hasn't been left for dead just yet.
Cash still remains the top payment instrument in several markets, with cash being used the most for retail purchases at 8.7 transactions per month, debit cards right on its heels at 8.2 transactions per month and credit cards at 5.6 per month.
Also, after checks, the most bill payments made by mail, phone or in person were made with cash at 2.2 per month.