Rich and poor people payment preferences study - crypto, cards, cash?

In our digital age of uncertainty, we are increasingly looking for new ways to pay. And so cryptocurrencies are becoming an increasingly popular method. We found a new study that is full of interesting information. For example, we look at what role income and demographic factors play in the choice of payment methods.

Contents

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Over the last twenty years, many innovative payment options have appeared on the market. But worlds away, traditional payment methods like cash or even cheques still remain popular for some people.

Most popular payment methods

The most commonly used cards are credit cards and debit cards, which allow quick payments both online and in brick-and-mortar stores.
Cash (cash is the king) – you can pay with it almost everywhere, even if your phone is dead.
Bank transfer is often used for larger transactions and the invoicing system is particularly popular in corporate environments.
E-wallets and mobile payments are also increasingly popular, often using NFC technology for contactless payments.
With the advent of cryptocurrencies such as Bitcoin, the opportunities for anonymous and decentralised payments are expanding. Payment security is key and therefore there is an increased focus on data protection and minimising transaction fees.
Many merchants also allow payments via QR codes, which is another way to make the payment process easier and faster.

A study showed that up to 90.9% of people over 65 still use checks!

The younger generation, especially in the 25-44 age group , prefers digital payment methods, be it debit and credit cards , mobile apps or cryptocurrencies.

Cryptocurrencies: A new trend in payment methods

Cryptocurrencies such as Bitcoin or Ethereum are becoming increasingly popular. Especially among younger generations. According to a study, men are up to three times more likely to invest in cryptocurrencies than women. The same trend is also evident among Asians and high-income earners.

The table below summarises the use of different payment methods by age group:

Age group	Cash	Cheques	Debit card	Credit card	Cryptocurrencies
<25	93.0%	28.1%	88.8%	73.2%	13.2%
25-34	91.3%	55.8%	93.8%	79.0%	13.6%
35-44	94.4%	69.4%	93.4%	77.2%	14.6%
45-54	95.3%	73.4%	91.0%	83.3%	5.9%
55-64	98.1%	80.3%	88.0%	83.5%	5.4%
65+	99.1%	90.9%	85.2%	88.3%	2.3%

What percentage of people in a given age group use the listed payment methods

This data shows that adoption of cryptocurrencies becomes less frequent with increasing age. But traditional payment methods such as checks and cash are still very popular among older consumers.

Cryptocurrency adoption – interesting facts

The study also analysed the impact of various demographic and financial factors on the likelihood of cryptocurrency adoption using a probit regression model. Here are the key results:

Age 35-44: +7.70% probability of cryptocurrency adoption
Men: +5.76% probability of cryptocurrency adoption
Asians: +3.18% probability of cryptocurrency adoption
Unemployed: – 4.34% probability of cryptocurrency adoption

The results show that cryptocurrency adoption depends not only on age and gender, but also on income and employment status. Younger people and men tend to be more open to adopting new technologies. Higher income and education also increase the likelihood of investing in cryptocurrencies.

Conclusion: the future of payment methods

Cryptocurrencies and mobile payment apps are becoming increasingly popular. They are mostly used by younger and more tech-savvy users. While the older generation still prefers cash and cheques, there is no denying that digital payment technologies are playing an increasing role in our daily lives. Whichever payment method you choose, the options are expanding and the future of payments will be diverse and dynamic.

And what do you use? Do you have FOMO for not keeping up with the times? Show off what you pay with, whether it’s cards, cash, cryptocurrency, or all of the above.