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Market Research Report

Consumers and Cash: A Love Story

Published by Mercator Advisory Group, Inc. Product code 260335
Published Content info 24 Pages
Delivery time: 1-2 business days
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Consumers and Cash: A Love Story
Published: January 23, 2013 Content info: 24 Pages
Description

New research from Mercator Advisory Group examines the relationship between consumers and cash payments

Boston, MA - January 17, 2012 - Cash is the most pervasive, and ancient, form of consumer payment. As such, cash presents a unique set of barriers to a global industry wanting to dig deeper into building out a fully electronic payments market. Cash acceptance also requires less technical infrastructure on the part of the merchant, while beinganonymous, flexible, self-reported, self-budgeting, and readily available to any consumer with the ability to earn an income.

In new research, Consumers and Cash: A Love Story, Mercator Advisory Group examines how moving cash transactions to e-money offers one of the few net new growth opportunities for retail financial institutions and tightens revenue streams for governments.

"A contemporary portrait of cash as a tender type has to acknowledge the fact that the dynamics of cash usage are more complex than for most other consumer payment forms. This is due to the fact that cash payments take place inside and outside legal and regulatory boundaries in more embedded ways than any other form of tender," comments Patricia Hewitt, director of Mercator Advisory Group's Debit Advisory Service and author of the report.

Major highlights of this report include:

  • The knowledge gaps surrounding the cost of acceptance pertaining to cash payments.
  • The current value of consumer cash payments in the United States (and the estimated percentage of all consumer payment volume this figure represents).
  • The two distinct demographic segments of cash usage and how they will affect product strategies designed to expand into cash transaction categories.
  • The stakeholders that must contribute toward solving the cash "problem" by addressing the needs of managing micropayments and offering equivalent benefits of convenience and liquidity.

One of 11 exhibits in this report:

Source Mercator Advisory Group

This report is 24 pages long and has 11 exhibits.

Entities mentioned in this report include: Federal Reserve Bank, U.S. Treasury, PayNearMe, PayPal, Walmart, Western Union, ZipZap, Coinstar, eBay, MoneyGram, Amazon, and Greyhound.

Table of Contents

Table of Contents

Introduction

The Business of Cash

  • Cash Costs Money
  • Consumer Payment Velocity Trends

The Demand Side of Spending

Why Consumers Use Cash

  • Cash User Profiles

How Consumers Use Cash

  • Cash Use Cases
  • Money Transfer
  • Account-to-Account (A2A) Transfers

Cash on the Edge

  • The Cash-to-Digital Payment Market

Consumers and Their Money: Strategies for Displacing Cash

  • A Government-Sponsored Break-up
  • Money Isn't Free
  • Competing for Cash in the Mainstream
  • Competing for Cash on the Fringe
  • Copyright Notice
  • End Notes
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