Press release №2149
01.03.2019
BANK CARDS VS CASH: WHAT IS MORE CONVENIENT?

IN BRIEF

  • 87% of respondents say they use bank cards more often than before
  • Bank cards are mainly used to pay for online goods and services (92%) and at electronic stores (88%)
  • Most of respondents take into account the annual service fee when choosing bank cards (91%)

Russian bank card holders mostly use their cards to pay for goods and services and less often to withdraw cash from ATM.

MOSCOW, March 1, 2019. Russian Public Opinion Research Center (VCIOM) presents the data of a study devoted to how often Russians use their bank cards to pay for goods and services, and what they take into account when choosing a bank card.

An overwhelming majority of respondents (87%) say that they use bank cards more often than 4-5 years ago.

Three-quarters (75%) say that they would pay by card in case they have both card and cash. This is due to the convenience (81%) and an opportunity to get extra bonuses from the bank (70%).

Cards are mainly used by respondents to pay for goods and services in online stores (92%) and in consumer electronics stores (88%). A further 84% use cards in furniture stores; 82%, in clothing and shoe stores. Eighty-one percent of respondents pay taxes and fines with a card; 80%, utility bills. Seventy-nine percent of respondents use cards at groceries; the same share of respondents pay for air and train tickets. Three-quarters (76%) use cards to pay for cosmetics and home care products, 73%, hotel rooms; 72%, petrol at pump station.

Most of respondents take into account the annual service fee and rewards programs (91% and 83%, respectively). If the bank increases the annual service fee or cancels the preferential terms allowing the cardholders to pay with a card free of charge, 59% of those who are aware of the annual fee or those who do not pay this fee will use their cards less often (including 17% of those who will completely stop using the card).

More than half of respondents (56%) possess credit cards; 79% of them have a grace period. Most of those who have a grace period (94%) think this opportunity is very important. If the credit card grace period is cancelled, 80% of those who have this option will have to use the card less frequently or completely stop using the credit card.  

VCIOM survey was conducted on January 23-29, 2019. The survey was commissioned by National Payment Association and involved residents of Russian cities with a population of 500,000 inhabitants, aged 18 and over (bank card holders). The method is online survey panel involving 800,000 respondents (based on ESOMAR’s guidelines for online surveys and requirements from ISO 20252 and ISO 26362).

Do you use bank cards to pay for goods and services more often, less or about the same as you did 4or 5 years ago? (closed-ended question, one answer, % of total respondents)
  Total respondents
Much more often 69
Slightly more often 18
About the same 11
Slightly  less often 1
Much less often 1
Don’t know 0

 

When choosing a payment method (bank card or cash) what are you guided by, given that you have both a card and cash?  (open-ended question, up to 5 answers, % of total respodnents)
  Total respondents
Convenience 47
Speed 30
Bonuses, cash back 28
Paying in exact change 16
Payment kiosk machine available 12
Safety 8
Having enough money to pay 7
Total sum of purchase 7
No need to count money 6
Spending  control 5
Place of purchase 5
Cash is needed for something else 5
Benefits from using this method 4
No need to have money on you 4
Getting used to it 2
Without extra costs 2
Contactless  payment 1
Having to withdraw money 1
Hygiene 1
Other 16
Don’t know 6
In what cases are you likely to pay with your bank card rather than cash?   (closed-ended question, one answer per each line, % of total respondents)
  Likely to pay by card Likely to pay cash Don’t know
To pay online purchases , online services 92 5 3
To pay at electronic and domestic appliances stores   88 7 5
To pay in furniture stores 84 10 6
To pay in clothing and shoe stores   82 13 5
To pay taxes, fines, fees 81 13 6
To pay utility bills 80 17 3
To pay in grocery stores 79 15 6
To pay at air and railway ticket offices 79 14 7
To pay in cosmetics and home care stores 76 19 5
To pay at hotels 73 18 9
To pay for petrol at pump stations 72 15 13
To pay at car dealership centers 70 13 17
To pay for tour operator services 69 18 13
To pay at entertainment facilities (cinema, theatres) 62 32 6
To pay at restaurants, cafes 60 33 7
To pay for national post services 57 35 8
To pay at beauty centers 51 39 10
To pay for taxi 34 61 5

 

What were you likely to take into account when choosing a payment method?  (closed-ended question, one answer, % of total respondents)
  Card type (credit or debit) Bonuses, rewards programs, extra services Annual service fee
Definitely important 58 46 66
Rather important 26 37 25
Rather  not important 9 12 5
Definitely not important 3 3 2
Don’t know 4 2 2
Will you continue using your bank card, if your bank increases the annual service fee and/or cancels preferential terms allowing you not to pay charges if you pay by the same card in most cases?  (closed-ended question, one answer, % of those who are aware of annual service fee)
  % of those who are aware of their annual service fee or who do not pay any fee
Yes, I will 8
Rather yes 21
Rather not 42
No, I will completely stop using the card 17
Don’t know 12
 
What bank products have you used over the recent year?  (closed-ended question, any number of answers, % of total respondents)
  Total respondents
Debit cards (including salary cards)   86
Money transfer 65
Credit cards 56
Savings account 30
Insurance 29
Loan (excluding mortgage loan)   28
Money exchange 22
Mortgage 14
Retirement plan 11
Loan refinancing 7
Bank products for legal entities 6
On-demand deposit (checking account) 5
Deposits of valuables (gold, securities) in lock boxes 3
Other 1
None of the above-mentioned 0
Don’t know 0
 
Do you have a grace period on your credit card? (closed-ended question, one answer, % of those who have credit cards)
  % of those who have a credit card
Yes 79
No 13
Don’t know 8
 
How important is it for you to have a grace period?  (closed-ended question, one answer, % of those who have a grace period)
  % of those who have a grace period
Definitely important 72
Rather important 22
Rather not important 4
Definitely not important 1
Don’t know 1

 

Will you keep using the credit card to the same extent, if your bank cancels the grace period?  (closed-ended question, one answer, % of those who have a grace period)
  % of those who have a grace period
Yes, to the same extent 14
Yes, but not to the same extent; I will use it less often 41
No, I will stop using the card 39
Don’t know 6

 

Note: Using materials from the site www.wciom.ru or wciom.com, as well as distributed by VCIOM, the reference to the source (or hyperlink for the electronic media) is obligatory!
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