Half of Americans Under 25 Think Paying With Cash Is 'Awkward'

Cash is… cringe? As tapping to pay becomes the norm in America, a surprising number of people now say it’s “awkward” to pay with physical cash.

Despite physical currency having been the cornerstone of everyday financial transactions for centuries, 28% of people “now feel awkward when paying with cash, a sentiment that is particularly strong among consumers 18-34 years old," according to Marqeta, a card issuing company.

A new survey released Tuesday found that older Americans are more comfortable with cash, but the feeling that it's awkward isn’t just a Gen Z thing.

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Asked if they’ve ever experienced feelings of awkwardness while paying with cash:

• 49% of ages 18-25 years old said “Yes”
• 38% of ages 26-34 years old said “Yes”
• 26% of ages 35-50 years old said “Yes”
• 16% of ages 51-65 years old said “Yes”

Is it awkward to pay with cash?

The question of whether paying with cash is uncomfortable may be up for debate, but there are some more practical pros and cons to consider.

For one thing, paying with cash can help you stick to a budget. Research shows that, for psychological reasons, you might spend less if you’re actually seeing the money leave your hand.

But the opposite is also possible. Once you’ve taken money out of an ATM, it’s tempting for some people to indulge in frivolous spending.

Other benefits? Cash is accepted in almost all brick-and-mortar stores. If you don’t need change or a receipt, it’s potentially the quickest payment method, and workers prefer cash at some establishments that accept tips.

But for most of us, the drawbacks and inconveniences mean we’d rather tap or swipe at checkout: Cash can be bulky to carry; waiting for change is slow; there’s the chance of loss or theft; you miss out on credit card rewards; and you don’t get an automatic digital record of your payments.

The U.S. lags other countries in contactless payments

Marqeta's survey also found that the U.S. is pretty far behind other countries in contactless payments.

In many parts of the world, you can tap almost anywhere — and people take advantage. In the United Kingdom, 80% of respondents said they've made a contactless payment in the last week, versus 46% in the U.S.

The country could catch up in the coming years as merchant acceptance of contactless payment is projected to increase. There's clearly a large group of people who want to pay with their phones, and 53% of Americans already "feel confident enough to leave their physical wallets at home, a figure that rises to 67% among 18-25 year olds," Marqeta said in the report. And in just the past year, nearly a third of surveyed consumers say they have decreased their cash usage.

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