How much cash do you have in your pocket or in your purse right now?
If you are like most Americans the answer is likely $20 or less. The fact that few Americans are in the habit of carrying a lot of cash with them is an indicator of how much our society relies on banking apps and card swipes. In fact, online banking is so prevalent in today’s society that even babysitting teenagers who are earning money for the first time are embracing this technology.
The mobile internet banking industry continues to expand as retailers and banks alike offer more and more conveniences. Paying at some coffee stores, for instance, requires neither cash or a card swipe. These companies have made it more convenient for their customers because they have created mobile apps that can be automatically reloaded whenever a balance drops below a predetermined amount. As a result, the new generations of consumers spend more time checking their online balance on their banking app than recording numbers in a checkbook register. And while there can be disadvantages to never dealing with cash, there are many who believe that they are more diligent about their funds when they can check their account balance in real time.
Consider some of these facts and figures about the mobile banking industry and the impact that it has had on the nation’s economy and consumers and their spending habits:
- Based on the most recent data from the Federal Reserve, 70% of consumers have at least one credit card. This percentage means nearly 174 million Americans have at least one credit card.
- Although it may seem extreme, more than 60% of Americans agree with the statement: “The United States will be a cashless society, in which all purchases are made with credit cards, debit cards and other forms of electronic payment,” according to a July 2016 Gallup survey.
- The average salary of a Millennial today is 20% lower than the average salary Baby Boomers had at the same age. Even more concerning, and perhaps as a result of their lower incomes, is the fact that Millennials deeper in debt than previous generations.
- Although there remains some debate, many experts believe the first true debit card hit the market in 1966 and was offered by the Bank of Delaware.
- 98% of home buyers 36 years and younger financed their homes, compared to just 68% of those aged 62 to 70, according to the 2017 National Assocation of Realtors Home Buyer and Seller Generational Trends report.
With the use of banking Apps and and other digital payments platforms, a growing number of Americans no longer use cash as often.