Cash Falls Out of Favor as Credit Cards Rise in Popularity

The way Americans pay for purchases has undergone significant changes over the past decade. According to a Pew Research Center analysis of data from the Federal Reserve Bank of Atlanta's Survey and Diary of Consumer Payment Choice, the share of people who use cash for all or almost all of their purchases in a typical week has fallen by half since 2015, from 24% to 12%. In contrast, the use of credit cards has increased, with credit cards now accounting for the highest share of payments at 34%, followed closely by debit cards at 31%.

The data also shows that people's payment preferences vary depending on the transaction amount. For example, purchases made with prepaid, gift or EBT cards tend to be the smallest, averaging $35 in 2025, while those made with checks, account transfers and online banking tend to be the largest, averaging between $400 and $700.

When it comes to preferred payment methods, a majority of Americans prefer to make in-person payments with credit or debit cards (78%), followed by online purchases with credit or debit cards (83%). For bill payments, 47% prefer credit or debit cards, while 40% prefer online banking or direct transfers.