In May, Federal Reserve Financial Services’ FedCash® Services released the 2024 Findings from the Diary of Consumer Payment Choice. Based on a nationally representative survey of U.S. consumers in 2023, the report shows an overall increase in the number of payments compared to previous years, as well as stable cash usage. Explore other highlights from the survey below.
In 2023, consumers made an average of 46 monthly payments, an increase of seven payments per month compared to the previous year.
On average, consumers made 15 payments with credit cards, 14 with debit cards, seven with cash, six with ACH, one with check, and three with other forms of payment.
With consumers making an increasing amount of purchases with credit and debit cards, the overall share of payments made with cash has decreased. However, this year’s survey indicates that there is a steady baseline of cash usage among U.S. consumers; they have consistently made an average of seven cash payments per month since 2021. Additionally, 92% of survey respondents indicated that they had no plans to stop using cash in the future.
The report also contains insights into demographic trends in payment usage, including a generational divide between those using cash versus electronic payments. Consumers younger than age 55 used cash for only 12% to 14% of payments, whereas consumers over age 55 used cash for 22% of payments.
The study measured the amount of cash consumers hold as a store of value – meaning the cash they keep in their homes, offices or vehicles. Store of value cash holdings increased at the start of the COVID-19 pandemic and have remained elevated since. In 2023, the average consumer held $369 in cash, an increase of 53% compared to the amount they held in 2020.
Consumers also continue to carry cash as a backup payment instrument. The survey found that in 2023, they held 23% more cash in their pockets, purses or wallets compared to 2020.
Since 2016, the Federal Reserve has conducted this annual consumer survey to better understand the payment habits of U.S. consumers. Read the full 2024 Diary of Consumer Payment Choice report for more insights and statistics and explore this earlier Fed360 article about other key findings from the report.
