Findings from Gallup confirm our Cashless Consumption investing theme remains on track

Findings from a new Gallup poll confirm the continued shift in consumer payment preferences that sit at the core of our Cashless Consumption investing theme, particularly among younger respondents. No surprise as the “younger” generation tends to adapt far more readily to new technologies like those fueling mobile payments.  Gallup’s poll found that fewer Americans are paying for “all” or “most” of their purchases with cash compared to just five short years ago. More specifically, in 2016 just 10 percent of respondents paid for all of their purchases with cash, down from 19 percent in 2011, a nearly 50 percent decline! From a demographic perspective, respondents between the ages of 23-34 now use cash in just over 20 percent of their transactions, down from 39 percent five years ago.

Fewer Americans say they are making “all” or “most” of their purchases with cash, compared to what they say they did five years ago — a sign of a shift toward electronic payment methods as well as mobile payment apps. While few indicate they have given up cash altogether, more Americans say they are making merely “some” of their purchases with cash.

Twenty-one percent of young Americans — aged 23-34 — say they make all or most of their purchases with cash, down 18 percentage points from the 39% who say they used cash to that extent five years ago. While the economy has absorbed noncash payments for goods and services, among all age groups younger Americans have shown the most striking drop in using cash.

Source: Americans Using Cash Less Compared With Five Years Ago

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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