Forget Venmo & PayPal: Millennials Want to Get Paid Back in Cash

Even for the digital generation, a new survey finds that cash is king when it comes to sending and receiving payments

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Mar 01, 2016, 07:15 ET

GOBankingRates survey finds how millennials prefer to pay and get paid back by friends

GOBankingRates.com is a leading portal for personal finance news and features, offering visitors the latest information on everything from interest rates to strategies on saving money and getting out of debt. Its editors are regularly featured on top-tier media outlets, including U.S. News & World Report, MSN Money, Daily Finance, Huffington Post, Business Insider and many more. It also specializes in connecting consumers with the best banks, credit unions and interest rates nationwide.

LOS ANGELES, March 1, 2016 /PRNewswire/ -- Fifty-eight percent of millennials prefer using cash over other methods of payment when sending and receiving money, according to the latest survey conducted by leading personal finance website GOBankingRates.com.

See the full survey findings at:

http://www.gobankingrates.com/personal-finance/millennials-still-prefer-paid-cash/

GOBankingRates asked 1,000 survey respondents ages 18 to 34, "Of the following, which is your preferred way of paying and getting paid back by friends and family?" For this Google Consumer Survey, one answer selection was allowed of the following options, which were displayed randomly. Responses were as follows:

Cash — 58%
PayPal — 11%
Check — 8%
Electronic bank transfer — 8%
Venmo — 6%
Google Wallet — 5%
Square Cash — 4%

"Even for a tech-savvy generation like millennials, digital payments have yet to offer the same convenience as simply exchanging cash," said Elyssa Kirkham, lead reporter on the survey for GOBankingRates.

"Yet a quarter of millennials carry $5 or less in cash at any given time, according to a survey from Independent Community Bankers of America.¹," Kirkham said. "A similar number, 26 percent of millennials, prefer one of the four payment apps included in the GOBankingRates survey to pay friends and get paid back. For young people who aren't in the habit of carrying around cash, paying and getting paid through these apps is more convenient than using cash or other methods."

Additional Findings:

PayPal is by far the most popular of the person-to-person payment apps among millennials. It was chosen 80 percent more often than the second-most popular choice, Venmo.
Women chose cash as their preferred method of payment 21 percent more frequently than men.
Men chose checks as their preferred method of payment 67 percent more than women did.

About GOBankingRates

GOBankingRates.com is a leading portal for personal finance and consumer banking information, offering visitors the latest on everything from finding a good interest rate to strategies for saving money, investing for retirement and getting a loan. Its editors are regularly featured on top-tier media outlets, including U.S. News & World Report, Forbes, Business Insider, Daily Finance, Huffington Post and more. It specializes in connecting consumers with the best financial institutions and banking products nationwide.

Contact:

Katie Johnston, Media Relations
GOBankingRates.com
[email protected]
310-297-9233 x116

¹: ICBA.org, 2014. "The 2014 ICBA American Millennials and Community Banking Study," http://www.icba.org/files/ICBASites/PDFs/ICBAMillennialsandCommunityBankingStudyWhitePaper.pdf.

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SOURCE GOBankingRates