Cash usage in the Americas is at an inflection point.
With strong economic growth, the overall cash usage is expected to hit $3.5 trillion by 2020 — up from $3.06 trillion in 2015. And while that’s a sign of positive growth, proliferation of new payment products is chipping away at the growth, according to the brand new Global Cash Index™ Americas Analysis.
In the U.S., changes in consumers’ payment preferences has slumped cash share to 13.1 percent of GDP. Meanwhile, in Mexico, which, at 22.41 percent, represents the largest cash share in the Americas, the country is fast-tracking its transition to a digital economy with new policies aimed at reducing cash usage.
Brazil, on the other hand, seems to be embracing cash. The country’s cash share stands at 22.2 percent of its GDP.
Other key takeaways from the new PYMNTS.com Global Cash Index™ Americas Analysis:
- Brazil, Mexico and the U.S. collectively spent $3.06 trillion in cash payments in 2015.
- Total cash use in the Americas is expected to grow by 2.56 percent CAGR.
- Nearly a third of retail purchases in the U.S. are paid for in cash.
The PYMNTS.com Global Cash Index™ Americas Analysis also features an interview with Claire Wang and Wendy Matheny, co-authors of the Federal Reserve’s 2015 Diary of Consumer Payment Choice.
PYMNTS caught up with Matheny and Wang to dig into the changing consumer payment habits across the U.S. and get the scoop on the future of cash.
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About The Index
The PYMNTS.com Global Cash Index™, a Cardtronics collaboration, focuses on the use of cash for making payments and as a payment method that equally plays a role with cards, checks, direct debit and other methods of settling up between consumers and businesses. Unlike most reported estimates of cash, our proprietary data analysis focuses on the use of cash for making payments rather than hoarding.