Cash Still Preferred by Majority Despite Declining Popularity

A recent survey by the Federal Reserve Financial Services found that consumers are still using cash for payments, despite its declining popularity. The survey of 6,079 U.S. consumers reported that four in five respondents had used cash in the past 30 days.

The majority of respondents (90%) said they will continue to use cash in the future, with 16% preferring it as their top payment method. This preference for cash places it third behind debit and credit cards.

The survey also found that consumers' average cash holding was $69 last year, while the share of consumers who had cash on their person at least one day held steady from 2021 to 2024 at 79%. However, the proportion of consumers carrying cash on their person declined from 79% in 2024 to 76% in 2025, with a steepest year-over-year decline since 2018.

The trend suggests that while credit and debit cards are becoming more dominant, consumers still value the option to use cash for payments. The survey also found that households earning between $50,000 and $74,999 preferred debit cards as their top payment method at 47%, followed by credit cards (33%) and cash (15%).