Cash And Credit Cards: Comparative Analysis


The modern world allows people to use more than one type of money to participate in trade. Currently, cash and card payments coexist, although there is a significant trend in favor of greater use of bank cards (Boden et al.). In addition, other payment methods are developing, allowing people to link a bank card to a program on their phone or watch. All this facilitates the payment process and the obstacles associated with using cash. These changes affect people’s preferences in payment methods and shift them to more choices of the most convenient way.

Cash and Card Payments

The choice of payment method is influenced by its convenience and availability. According to Shift Processing, credit cards are the preferred method of an exchange over cash, as they require minimal human effort. Statistics confirm that a typical cash transaction is $22, while a typical credit card transaction is $112 (Shift Processing). People who pay with a bank card experience significantly less stress when making a purchase and emphasize “the lower pain of paying” (Boden et al.). They are more likely to spend more money using a credit card because it is psychologically easier.

The usage method and spending limit fundamentally differ between cash and credit cards. Cash is a type of money that contains both paper and coins, so when people pay in cash, a percentage of their money is immediately deducted. Since a person immediately gives away his money, he approaches the purchase with great deliberation. In contrast, a credit card can be used to borrow from a bank, and the lender finances the seller on their behalf to complete the purchase. Thus, a person gets the opportunity to use money under the agreed-upon limit.

Both cash and credit cards have certain advantages when using them. Cash is easily converted into commodities as it is widely known, fast, and does not pose a significant risk of data leakage. Bank cards provide mobility of transactions but require special equipment or software. Therefore, a certain amount of cash is a safety net in a situation when it is impossible to make a transaction by card. Otherwise, a bank card is similar to paper money, allows you to purchase products and services, and ensures the security of recovery in case of theft.


In conclusion, cash and credit cards are interchangeable payment methods with advantages and disadvantages. Cash is a traditional way to pay for goods and services and is still handy for smaller purchases. Moreover, cash is more secure as it does not require special terminals or software to complete a transaction. However, in today’s world, a credit card is a reasonable and desirable substitute for cash for personal expenses. In addition, it is a necessary tool for e-purchases, provided that you can fully pay off your debts.

Works Cited

Shift Processing. “Cash Vs Credit Card Spending Statistics.” Shift Processing, Web.

Boden, Joe, Erik Maier, and Robert Wilken. “The effect of credit card versus mobile payment on convenience and consumers’ willingness to pay.” Journal of Retailing and Consumer Services, vol. 52, 2020, p.101910.