Recently released data has revealed consumers are turning to debit cards, credit cards, and mobile wallet cash alternatives more frequently than ever before.
Analysis by CivicScience, the Federal Reserve, Forrester and Ally Bank determined three in four Ally customers polled noted they primarily use a credit card when purchasing goods and services in stores.
Conversely, officials said fewer than one in 10 Ally customers indicated their primary form of payment is cash.
“Customers want convenience, and a credit or debit card eliminates the guesswork in how much cash might be necessary when running errands, dining out or simply day-to-day expenses like gas, parking or coffee,” Diane Morais, president of Consumer and Commercial Banking Products at Ally Bank, said. “Consumers are getting savvier also and taking advantage of rewards and protection while using a credit or debit card.”
Morais said one advantage of using a card for transactions is the ability to track the spending, which she maintains helps with budgeting.
Consumers also are growing more comfortable paying individuals directly sans cash or a check, officials said, with person-to-person payment systems like Zelle.
Ally Financial officials said the organization is a digital financial services company with assets of $171.3 billion as of June 30, 2018.