Do Millennials Prefer Cash Over Card?
When the Great Recession hit, Millennials in their early to late twenties were some of the most effected. Faced with mounting student loan debt and seemingly long-term unemployment, they started thinking more about the money they have and how to spend it. When the economy started to stabilize, their viewpoint on debt had changed entirely: Instead of incurring added debt, they avoided it. With this new-found ideology, Millennials are choosing cash over card.
Why DO Millennials prefer cash?
A survey by Bankrate.com found that young consumers preferred cash to credit and debit cards; that only one out of every three Millennials were found to carry a credit card. Of those, only half used their cards at least once a week. Compare this to the 61% of seniors and you can see a major shift in the way Millennials spend.
The reason is because in the 18 to 24 age range young adults are just getting out in the world. They are either joining the job force with college degrees and debt, working on their degrees, or just starting school. They have very little, if any, income. Therefore, Millennials need to be mindful and consider that purchases on credit only add to the debt they owe.
Cash, on the other hand, allows them to directly monitor their spending, avoid merchant fees, and is more convenient than using popular peer-to-peer payment apps like PayPal and Venmo. Moreover, cash transactions are faster and far more simplistic than those done with card.
What does this mean for your business?
An ATM at your location opens your business up to a larger, younger group of potential customers while generating passive income. These customers are more likely to use cash for smaller value transactions because most of their purchases are small value. This means that you can continuously provide them with the cash they need while expanding your reliable customer base.