Surprisingly, cash usage still represents about 40% of total transactions for 18 - 24 year olds. Pymnts speculates at least some of that is due to a lack of access to traditional credit. Overall, cash payments represent 13.1% of overall U.S. GDP and still one-third of retail purchases.
Today, consumers heavily prefer to use cash for paying their food and personal care supplies, auto expenses, entertainment and transportation. Among different cash spending categories, food and personal care supplies account for 52 percent of cash transactions — an important category that continues to fuel the high usage of cash, the Federal Reserve research suggested. “If things continue as they have been, cash is maintaining its own and holding strong even with more and more payment options available out there,” Matheny said. “If, all of a sudden, for your pack of gum and your soda, you’re no longer paying cash — for that small food or personal care transaction — that’s when we would expect to see more dramatic changes in cash [usage].”