Federal Reserve Financial Services today issued the 2025 Diary of Consumer Payment Choice (Diary), an annual survey measuring the evolving role of cash in the U.S. economy. Findings from this nationally representative survey showed that amid the increasing digitalization of payments, consumers continue to use cash and keep it handy. Cash ranked third as a top payment instrument among consumers, a position it has held for the past five years. In 2024, it accounted for 14% of consumer payments by number, while credit and debit cards accounted for 35% and 30% of payments, respectively. Overall, U.S. 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. The survey also revealed generational and demographic trends in payments. Households earning less than $25,000 per year and adults 55 and older relied more on cash than other cohorts. In contrast, adults aged 18 to 24 were more likely to pay with a mobile phone, using their phones for 45% of all payments. Other key findings included:
- S. consumers made an average of 11 payments per month with a mobile phone in 2024, up from four payments in 2018.
- Cash remains a key backup payment method for U.S. consumers. Of all cash payments in 2024, nearly two-thirds were made by consumers who prefer other payment methods, such as debit or credit cards.
- Nearly 80% of U.S. consumers have held cash in their pockets, purses or wallets for at least one day of the month for each Diary survey conducted since 2018. Though the value of these holdings has decreased since 2022, it remained elevated in 2024 compared to pre-pandemic levels.
- More than 90% of U.S. consumers intend to use cash as either a means of payment or store of value in the future.