Over 55% Feel Cash Is the Most Effective Payment Method

As the world progresses toward multiple cutting-edge developments, one such development is the transition to a cashless society. The need to shift to a cashless society comes from various factors such as reduced crime rates, fewer costs, convenience, etc. Such a shift, however, has stirred opinions from many.

Thus, Real Research launched a survey on consumers using payment systems and their perception of a cashless society. Specifically, the survey aims to find out opinions on the technology of a cashless society, possible advantages, and disadvantages. Here are the results.

Highlights:

• 55.27% say cashless societies have not made much progress in the countries they reside in
• 55.26% say cash is the most useful method for offline purchases
• 55.53% say the biggest drawback of a cashless society is the financial alienation of the underprivileged and restrictions on consumption activity

91.75% Use a Credit or Debit Card

The survey starts by asking respondents whether they are consumers or sellers with or without card readers. The responses showed that 83.55% were consumers, while 8.64% were sellers without card readers, and 6.75% are sellers with card readers.

Next, the survey asks respondents if they use debit or credit cards for offline purchases. All 91.75% responded with ‘yes, I do’ whereas 5.68% respond ‘No, I don’t’. However, 2.56% also said ‘I used to but not lately’.

When asked why they do not use debit or credit cards, 36.64% feel they do not find any inconvenience in the current payment system they are using. Meanwhile, 24.12% feel they ‘cannot be bothered to issue debit or credit cards’ and 7.79% say they live in an area where it is hard to issue a card (low access to banks). Lastly, 5.34% say their card application was declined.

Next, the survey asks whether respondents use a digital wallet such as Apple Pay, Google Pay, Samsung Pay, or PayPal. Here, 89.71% say ‘yes’ and 10.29% say ‘no’. Contrarily, the survey asks why respondents do not use a digital wallet platform. In response, 28.58% say it is a hassle to open the app every time. Likewise, 14.70% feel concerned that personal data could be leaked by signing up on the app. However, 51.16% do not find any inconveniences in the current payment system they are using.

Additionally, the survey asks ‘which payment method do people find most useful for offline purchases?’. To this, 55.26% chose cash, 15.87% chose credit cards, and 10.86% chose debit cards. Moreover, 9.78% chose digital wallet platforms, 2.86% chose bank transfers, and 2.41% chose local currency.

Next, the survey asks why respondents find card payment useful. In reply, 56.16% suggest the useful benefits of a credit or debit card (rewards, cashback, etc.,). Meanwhile, 30.89% suggest the errors of a digital wallet platform. Finally, 12.07% say use rewards and payment services (pay with rewards).

The Convenience of Digital Wallets

The survey then asks respondents why they believe digital wallets are most useful. A majority of 47.09% suggest no need of carrying a wallet around, while 31.71% suggest the inconvenient processes of card application. In addition, 11.91% suggest higher ATM fees due to an increase in digital waller users. Lastly, 9.01% feel concerned about losing a card.

Moving ahead, the survey asks whether respondents get receipts for offline purchases. On this, 85.65% get receipts while 14.35% do not. Accordingly, the survey asks why respondents do not take receipts. In reply, 36.07% say they get a notification on mobile and check the mobile app while 24.64% say they do not want to waste paper on receipts. Then, 20.63% say there is no proper place to get rid of receipts and 16.36% say they get digital receipts via the mobile app.

The survey also asked regarding situations where cards were not accepted as the store did not open a merchant account. In answer, 76.81% say ‘yes, I’ve seen some stores where card payments were not accepted’.

Respondents on Alternative Methods Instead of Cash

The survey asks if respondents are aware of a cashless society where all economic activity is performed via alternative methods. In response, 91.15% say ‘yes’ and 8.85% say ‘no’.

Accordingly, the survey also asks respondents how the pace in their country is toward a cashless society. All 55.27% felt there is only a little change, while 26.06% feel it is changing slowly. In contrast, 11.77% feel it is changing fairly quickly and 6.90% say it is changing very quickly.

Further on, the survey asks how respondents would feel if most stores in the future become cashless. The majority (41.41%) would find this to be extremely inconvenient, while 10.05% say convenient, and 25.05% are neutral. When asked about the transition to a cashless society, 37.23% feel extremely negative, 16.15% feel extremely positive, and 27.91% are neutral.

Next, the survey asks respondents about the advantage of a cashless society, 56.69% feel it is less of a hassle. Moreover, 14.25% feel it lowers the cost of money production and processing. To add on, 12.15% feel the transparency in the transactions is advantageous. However, 5.76% suggest a lighter wallet and 5.30% suggest the reduced illegal cash transactions.

To conclude, the survey asks about the drawback of a cashless society. A majority of 55.53% suggests the financial alienation of the underprivileged, and restrictions on consumption (social gap). Moreover, 19.04% feel the cash option is not guaranteed. However, 5.98% feel there is a decrease in cash supply kiosks such as bank counters and ATMs. In fact, 4.93% chose the increase in credit card piracy and abuse of mobile payment. Lastly, 4.48% suggest that lower access to cash can be a drawback.