Cash Survey Results in Switzerland and the US

Both Switzerland and the US are big users of cash. Here we report on surveys that show change is happening.

In Switzerland cash remains an integral part of life, carried by virtually all and held at home as a store of value by most. However, debit cards and contactless payments have driven cash usage to under 50% and people have now experienced using non-cash payments. Change has started.

In the US cash is remarkably resilient, with the pandemic having an impact but perhaps not as big as one might have expected. Although people are choosing convenience, the survey suggests a keen desire for payment choice.

SNB 2020 Survey on Payment Methods

The Swiss National Bank (SNB) repeated its 2017 survey on payments. 2,100 people were interviewed before filling in a week long payment diary for day-to-day non-recurring payments, as opposed to recurring payments such as paying the rent. Over 22,000 payments were recorded. Respondents also provided information on their recurring payments. Survey data was collected between August and November 2020.

A lot has changed since 2017, with the number of people holding debit cards rising from 88% to 92% (and 92% of those cards being contactless enabled) and credit cards rising from 63% to 78%. With this capability in place, debit cards are now preferred for their ease of use and speed, particularly at high use point-of-sale locations. A third of respondents said the pandemic had driven lasting change in their payment habits. Despite that, 97% still carry cash.

In 2017 cash was used for 70% of non-recurring payments, but this dropped to 43% in this survey. Debit cards increased from 22% to 33% and credit cards from 5% to 13%. 60% of debit and credit card payments were contactless.

In 2017 cash was the most widely used payment instrument for payments under CHF 50; in 2020 this was true for payments under CHF 20. Consumers who predominantly use cash give expenses management and security as their primary reasons for choosing it.

Mobile payments were at a low level in 2017. Only 11% of respondents had downloaded a mobile payment app, but this has now increased to 48%. When asked why they did not use mobile payments, 13% did not own a smartphone and 14% did not know how to install an app. Although not commented on in the report, this represents a major challenge for anybody who thinks digital inclusion will be straightforward. Crime (21%), privacy (20%), no added value (21%) and inconvenient (16%) were also given as barriers to mobile payments.

While the volume and value of mobile transactions was effectively zero in 2017, they are now 5% and 4% respectively.

Mobile payments are largely used to make person-to-person payments ( 80%), online payments (50%), at retailers (45%) and for vending/parking payments (38%).

The report highlights that 62% of recurring payments are made online. Pocket money was still predominantly paid in cash!

Finally, the Swiss still use cash to store value. The CHF 100 denomination is preferred. Most people hold less than CHF 1,000 in cash.

The report opens with the statement ‘A remarkable technological development is currently underway in payment transactions, with people profiting from a growing range of non-cash payment methods.’ Switzerland has moved swiftly from being a cash-based society to a more mixed payment environment. It will be interesting to see how this progresses now change has started.

US Health of Cash Study 2021

Cardtronics commissioned Javelin Strategy and Research to carry out its 2021 survey of US cash usage. The survey collected data in April and October 2020 and compared it with its 2019 data.

The survey found that cash continues to be used by the majority of Americans. In 2019 83% of people had paid in cash in the last 30 days. This dipped to 68% in April 2020 but recovered to 73% by October. Credit cards and debit cards are used less, dropping less but also recovering less, reaching 69% and 42% respectively.

For payments under $10, cash usage fell from 59% to 54% between 2019 and October 2020. It is interesting to see that for payments between $10 and $20 cash usage is significantly less, 25% in 2019. Just as for payments under $10, the drop was small, down to 21%.

In 2019 pre-paid cards did not figure in the data. In October 2020, 5% of payments under $10 and 7% of payments between $10 and $20 were made using pre-paid cards. Presumably, this is to do with the US government’s pandemic financial support scheme. The research does not show who was using these cards, but this change suggests people can adopt new ways of paying quickly.

When respondents were asked to agree with statements about cash, because it was the easiest way to pay ranked fifth with 44% agreeing, and 30% disagreeing. This, perhaps, points to a reason that cash usage is in decline.

Having said that, the survey showed strong support for payment choice. 49% strongly agreed and 24% agreed with the statement ‘merchants should allow consumers to pay in cash in addition to electronic payments.’ 

Another question indicated a strong desire for those offering digital commerce services to find a way to accommodate cash. Cash was the preferred method of paying for 19% of those buying online but picking up at store, 28% of those ordering ahead and 31% buying personal services.

It appears that the pandemic may have challenged cash usage in 2020 but it remains central to how Americans buy and the choice to pay in cash is highly valued.