By Jairo Riveros, chief strategy officer and managing director of the U.S. and Latin America at Paysend
Sample Targets: Value Walk, Financial Times, GoBankingRates, NerdWallet
We’ve all heard about credit card fraud which can happen both physically and virtually, but using cash also carries risk. Either way, using cash or a credit card can leave you vulnerable, but what if one could be more easily avoided or managed?
Before diving into the pros and cons of using credit cards vs. cash, we must first understand who is most at risk for becoming a target of financial fraud schemes.
Who is more at risk for financial fraud?
While scams target people of all ages, older populations, particularly those who are 60+ in age, are most at risk as they are not digital natives. This vulnerability can leave older generations fearful of utilizing more modern ways of managing money such as credit cards or digital wallets. Because of this fear, older demographics more often default to cash options.
In addition to age, ethnicity is a common factor that plays into money management habits and vulnerabilities. For instance, despite the recent high growth of the fintech market in Latin America, cash remains king. In fact, across Latin America, cash is used for 36% of point-of-sales payments while credit cards are only the second most popular choice.
Also, due to historically low prioritization by traditional financial institutions, nearly 70% of Latin America’s population…
