2025 Diary of Consumer Payment Choice reveals cash remains relevant in an increasingly digital economy
May 13, 2025
CHICAGO — 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.
“Even in a rapidly evolving payment landscape, where consumers increasingly use mobile devices to make payments both remotely and in person, U.S. consumers’ use of cash has remained largely consistent over the past four years,” said Kathleen Young, executive vice president and chief of FedCash® Services. “Holding steady at seven payments per month since 2020, the trends in this year’s survey suggest cash usage may have reached a baseline, maintaining relevance due to the ubiquity, accessibility and resilience of cash.”
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:
- U.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.
Since 2016, the Federal Reserve has conducted this annual consumer survey each October to better understand the payment habits of U.S. consumers. Participants report all payments over a three-day period, the value of their cash holdings, payment instruments used and their preferences for various types of payments.
The 2025 Diary of Consumer Payment Choice is available on the Federal Reserve Financial Services website.
About the Diary of Consumer Payment Choice
The Federal Reserve conducts the Diary of Consumer Payment Choice survey every year to understand U.S. consumers’ payment behavior, preferences and how consumer payments change from one year to the next. The latest survey was conducted in October 2024. Understanding the evolving role of cash in the U.S. economy through the Diary studies helps ensure FedCash Services is fulfilling its mission of meeting cash demand in times of both normalcy and stress, maintaining the public’s confidence in U.S. currency, and providing ready access to cash.
Federal Reserve Financial Services uses data from the Diary to understand consumer cash use and anticipate its ongoing role in the payments landscape. By tracking consumer payment transactions and preferences annually during the month of October, Federal Reserve Financial Services compares cash with other payment instruments, such as credit and debit cards, checks and electronic payment options. Diary participants also report the amount of cash on hand after each survey day, cash stored elsewhere and cash deposits or withdrawals. Analysis of the Diary data includes the impact of age and income on an individual’s payment behavior and preferences, as well as cash stocks and flows at an individual level.
About Federal Reserve Financial Services
Federal Reserve Financial Services provides payment services and seeks to foster the stability, integrity and efficiency of the nation’s monetary, financial and payment systems. It offers a comprehensive suite of payment and information services offered to financial institutions. Visit FRBservices.org for additional information.