With more Americans relying on credit or debit cards for most or all of their transactions, a cashless society may be closer than ever.
41% of Americans surveyed by Pew Research Center said they didn’t use cash at all in a typical week in 2022, compared to 29% in 2018 and 24% in 2015. The survey found that top earners and younger generations who grew up with technology are more likely to favor digital payment methods.
While this trend has naturally grown with the rise of contactless self-checkout registers and mobile tap-to-pay, ATTOM Data also saw a “significant” spike in consumer credit use around the same time the Federal Reserve raised interest rates.
In a recent ATTOM Data webinar, Rick Sharga, Executive VP of Market Intelligence for ATTOM, expressed his concern that credit use is increasing “because people are having trouble making ends meet in this high inflation environment.”
However, because delinquency rates are still at historically low levels, Rick is optimistic that the economy will rebound in 2023.
PropTech will flourish in a cashless society
The low delinquency rate further suggests that, despite financial hardship, tenants may be unlikely to fall behind on rent payments in 2023 and beyond.
But as digital payments take over, it will become more important for property managers to give tenants the option to pay online. Property managers can ensure seamless digital transactions for tenants with bank-integrated PropTech that supports instant electronic payments from devices with a Web browser.
More economy headlines
US inflation slowed for sixth straight month in December – The Wall Street Journal