Report: Most used cash in past 30 days, use lags behind debit, credit cards

Most consumers used cash over the past 30 days, but use lagged behind debit and credit cards, especially among younger customers. That’s according to this year’s Federal Reserve Diary of Consumer Payment Choice report. .Cash was the third-most preferred payment at 16 percent, with debit and credit cards ranking higher. Paper currency accounted for an average of a half-dozen payments on a monthly basis, representing 14 percent of the overall total, according to the survey. Four out of five consumers used cash in the past 30 days. Consumers made an average of 47 payments monthly last year, similar to 2024. The number of payments made with debit and credit cards remained steady with the previous year. The share of consumers who favor credit cards reached 38 percent last year, only slightly trailing debit cards at 40 percent. Use of cash differs based on age, with consumers 55 and older making an average of 10 monthly cash payments, while customers 18 to 24 using cash for only two payments per month. Rural residents made an average of nine cash payments per month, higher than the six cash payments for urban and suburban residents. Those with an average income of less than $25,000 made an average of seven monthly cash payments, compared to five for households making more than $150,000. Ninety percent of consumers plan to continue using cash, according to the report. More than three-quarters of respondents reported carrying cash on them, with an average of $69, similar to 2024. Forty-five percent stored cash for savings or emergencies, with an average of $364, up from $306 in 2024. According to the Federal Reserve, the report shows the importance of keeping a strong cash infrastructure. “The consistency of cash and card use over the last three years suggests cash remains a stable payment method amid the rise in digital options,” said FedCash Services Chief Kathleen Young. “Cash continues to remain a primary payment method for some, while serving as a key backup payment option and a store of value for many Americans. This points to the importance of consumer payment choice.”