Contactless payment technology, designed for low-value debit card payments, is making inroads into cash payments, according to new research.Researcher RFi asked consumers what payment method they used in a typical month. In September last year, 88 per cent of respondents said they used cash, which was consistent with surveys going back to 2011. In the latest survey, undertaken in March, that number had dropped to 73 per cent. This is the lowest figure recorded since the six-monthly survey started in 2011.Twenty-three per cent of respondents said they were spending with cash less frequently.These findings are included in the HP-RFi Australian Payment Research report, a six-monthly survey of payment preferences and usage.The finding of less frequent cash payments is supported by Reserve Bank data, which shows that the number of ATM cash withdrawals has fallen from more than 70 million a month a year ago to around 60 million now.The fall in cash usage coincides with a higher proportion of debit-card users making contactless payments on a regular basis. Twenty-nine per cent of respondents said they had used their debit card more frequently during the previous 12 months. Forty six per cent of consumers now own a contactless card, and 26 per cent of these say they are making contactless payments "at least a few times a week". This number has increased from a little over 10 per cent a year ago.Almost half of those with a contactless card said they used it either daily or at least a few times a week, or once a week.Merchant adoption has been a key factor in this change, with both Coles and Woolworths promoting contactless cards.Payment size is an important factor in determining payment preferences. RFi found that the minimum value for a debit card purchase was around $76, for a credit card it was $165.The fact that more than half of those with a contactless card only use it once a fortnight or less suggests that it is not yet a mainstream payment method.However, contactless card ownership will grow as issuers include the technology in their new scheme debit cards.