Baby Boomers and Echo Boomers predict a cashless society

According to new data released by Visa USA, an overwhelming majority of both Baby Boomers (79%) and Echo Boomers (74%) believe that our society will one day operate without cash and checks and will conduct all payment transactions electronically. Visa estimates by the year 2015, Echo Boomers and Baby Boomers will account for more than 50% of total consumer spending, 2.45 trillion and 4.6 trillion respectively. Currently, industry estimates show that Echo Boomers are responsible for 0.4 trillion in annual spending compared to 3.8 trillion by Baby Boomers. Findings reveal that younger consumers between the ages of 18-28 are defying conventional wisdom when it comes to stereotypes often associated with their generation.

According to the study, Echo Boomers are demonstrating a more practical and mature approach to spending beyond their years, they view spending as a way to give back to others, they prefer retail categories that help relieve feeling time-stretched and look to older generations for buying cues. Nearly half of Echo Boomers (48%) describe themselves as savers. Even at their young age, more than 70% of Echo Boomers are concerned about having enough money for retirement, a degree of concern similar to the about-to-retire Baby Boomers (78%). 88% of Echo Boomers like to buy things for others more often than buying things just for themselves. Echo Boomers cited dining out at restaurants as their second largest expense (45%), after housing costs (69%) in a given month. Echo Boomers said their spouses (70%), children (63%) and parents (48%) had the most influence on their spending. 37% of Echo Boomers believe older generations have an influence on their spending behavior.

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