Paper or Plastic?

Ann-Marie Vazzano

More consumers are reaching for the plastic when making purchases less than $5, according to a CreditCards.com report. While about 60% still use cash for small transactions, 27% prefer using debit cards and 11% like to use a credit card. Overall, cash usage is down 7% from 2014, while debit card usage is up 5%. Credit card usage is unchanged.

The study found that age plays a role in how consumers pay. Among shoppers 50 and older, 74% prefer using cash for small purchases, compared to 41% under age 50. Not surprisingly, Millennials are the most likely to use plastic (46% debit cards, 18% credit cards) for small purchases. The report also found that as annual household income increases, the likelihood of using cash decreases. GP