Credit and debit cards continue to dominate American payments, but cash remains a significant player, accounting for 14% of all consumer transactions in 2024, according to the Federal Reserve.
Cash ranks as the third most popular payment method among consumers, following credit cards at 35% and debit cards at 30%. Overall, U.S. consumers made an average of 48 payments per month, reflecting a consistent upward trend since 2021. This increase is attributed to rising credit card usage, remote payments, and mobile phone transactions.
In 2024, Americans completed an average of 11 payments monthly using mobile devices, a substantial rise from four in 2018. Households earning less than $25,000 annually and adults aged 55 and older tend to rely more heavily on cash compared to other groups. Conversely, adults aged 18 to 24 are more inclined to make payments via mobile, utilizing their devices for 45% of all transactions.
Most people do not anticipate the extinction of cash, with over 90% planning to use it as either a payment method or a store of value in the future. “Even in a rapidly evolving payment landscape, where consumers increasingly use mobile devices for both remote and in-person transactions, U.S. consumers’ use of cash has remained largely consistent over the past four years,” says Kathleen Young, EVP and chief of FedCash Services.