You’ve probably heard said that you shouldn’t use a credit card for small purchases – especially for something under five dollars. According to CNBC, despite this advice being engraved into our increasingly cashless society, it seems that it isn’t proving effective with younger generations.
A study done by CreditCards.com of 1,001 adults shows that seventeen percent of people have used their credit card to buy something that costs less than five dollars. This might not seem like a lot, but the number has increased eleven percent from last year.
CreditCards.Com senior analyst Matt Schultz suggests that this could be in part due to cards which reward users for monthly spending. Many cards require users to spend $3,000 in the first few months to qualify for bonuses.
Another reason might be that the alternatives just aren’t succeeding. For example, Mike Maughan, head of brand growth and global insights at Qualtrics, says that “mobile payment platforms aren’t exactly catching on.”
The majority responsible for these small purchases, and in fact the generation most likely to use their credit card, are millennials. The very people who were supposed to champion the cause of alternative solutions like Apple Pay are actually failing it. Believe it or not, they are four times more likely to use cash over a mobile payment platform.