Credit and debit cards continue to dominate American payments, but cash is still an important player, accounting for 14% of all consumer transactions in 2024, according to the Federal Reserve.
Cash ranks third as a top payment instrument among consumers, behind credit and debit cards which accounted for 35% and 30% of payments, respectively.
Overall, US consumers made an average of 48 payments per month, continuing an upward trend that began in 2021. In 2024, this growth in the overall number of payments was driven by increased credit card usage, remote payments and payments made with mobile phones.
Americans made an average of 11 payments per month with a mobile phone in 2024, up from four in 2018.
Households earning less than $25,000 per year and adults 55 and older rely more on cash than other cohorts. In contrast, adults aged 18 to 24 are more likely to pay with a mobile phone, using their device for 45% of all payments.
The vast majority of people are not expecting cash to disappear anytime soon with more than 90% intending to use it as either a means of payment or store of value in the future.
“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,” says Kathleen Young, EVP, chief of FedCash Services.