While credit and debit cards continue to dominate everyday purchases in the U.S., cash remains a key payment method, accounting for 14% of all consumer transactions in 2024, according to new data from the Federal Reserve. It ranks third behind credit cards (35%) and debit cards (30%) as the preferred payment instruments among American consumers.
The average U.S. consumer made 48 payments per month in 2024, continuing a steady increase since 2021. This uptick has been largely fueled by greater use of credit cards, mobile phone-based payments, and remote transactions. Mobile payments, in particular, saw a notable rise — Americans averaged 11 mobile payments per month, nearly tripling from just four in 2018.
Despite this digital shift, cash continues to play an essential role, particularly among lower-income households and older adults. Those earning under $25,000 annually and individuals aged 55 and over are significantly more reliant on cash than younger and higher-income groups.
On the other end of the spectrum, adults aged 18 to 24 used their mobile phones for 45% of all their payments, illustrating a generational divide in payment preferences.
Notably, the report highlights strong consumer confidence in the enduring value of cash, with over 90% of respondents indicating they plan to continue using it either as a means of payment or a store of value.
“Even in a rapidly evolving payment landscape, where consumers increasingly use mobile devices to make payments both remotely and in person, US consumers’ use of cash has remained largely consistent over the past four years,” said Kathleen Young, EVP and chief of FedCash Services.