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Consumers have plenty of options when it comes to paying for transactions. Cash and credit cards are two of the most popular methods of payment, and both of them come with their share of benefits.
Whether you reach for a stack of bills or whip out your credit card to complete a transaction often depends on your personal preferences and which option is most convenient for that particular purchase.
Or maybe you reach for something else altogether. Advances in technology have introduced new forms of payment that people in the past probably never dreamed of. If you’d told me 30 years ago that I could one day pay for things using a watch attached to a digital wallet, I’d have thought you read too many science fiction novels.
Even as new forms of payments emerge, consumers continue to reach for their wallets and produce cash or a credit card to complete transactions. But do they still use those payment methods as much as they once did?
Let’s examine the facts of the matter. Here are 25 fascinating statistics that reveal how consumers’ cash and credit card usage has evolved.
1. More than 47% of Adults in America Don’t Use Cash in an Average Week
Many of the activities we immerse ourselves in each day involve a financial transaction. Perhaps it’s the pastry you grab from the bakery on your way to the office every morning, or the box of chocolate cupcakes you purchased to make that birthday celebration a little sweeter. Do you typically use cash to complete these transactions?
If your answer to that question is a resounding ‘no’, don’t worry — you’re not an outlier. More than 47% of adults in the U.S. don’t use cash for any of their purchases in a given week.1
2. About 64% of Americans Expect Cash Usage to End in the Future
It’s no secret that cash usage is declining in the U.S., but some consumers may wonder if the decreasing use of greenbacks is due to societal trends that will reverse at some point in the near future. Well, most Americans don’t think so. In fact, the majority of Americans (64%) expect a cashless society in the future.1
Here is a look at how the perceived likelihood that the U.S. will become a cashless society has shifted over the years:
2016 | 2022 | |
---|---|---|
Very Likely | 30% | 29% |
Likely | 32% | 35% |
Unlikely | 25% | 21% |
Very Unlikely | 11% | 15% |
If point-of-sale transactions are any indicator of the way in which cash use is trending, consider this — 85% of global point-of-sale transactions are completed without cash. And that number is expected to rise to 90% by 2028.
Research projects that the majority of adults in the U.S. (51.6%) won’t use cash at all in a typical week during 2025.
3. Only 13.3% of Banked Households Use ATMs at Least Once Per Year
As people use cash less frequently, the need for ATMs has also decreased. But it’s still somewhat surprising to see that only 13.3% of banked households will visit an ATM in 2024.1
The supply of ATMs has also shrunk to align with consumer demand. Between 2019 and 2022, the number of ATMs in the U.S. decreased by 3.83%.
4. Gen Z’s Cash Usage is Increasing
Cash enthusiasts may be disappointed by the statistics laid out in this article thus far, but take heart — there is hope for cash on the horizon. And that glimmer of hope shines from the wallets of members of Gen Z.
Gen Zers, or zoomers as they’re sometimes called, were born between 1997 and 2012. That means that many of them are beginning to wield their purchasing power as they complete their education and embark on their careers.
Zoomers turn to cash more often than members of other generations.2 One explanation for their use of cash is the practice of cash stuffing, which is a budgeting strategy that requires consumers to set aside cash at the beginning of every month and assign it into spending categories.

For Gen Zers who’ve used cash stuffing as a budgeting strategy, 70% report that it’s helped them lower their overall spending each month.
For example, a cash-stuffing proponent could set aside $200 for entertainment expenses during the month of March. Once that money is depleted, they know they’ve spent their allotted amount on entertainment that month. One survey suggests nearly 30% of Gen Zers have used the cash-stuffing approach to budgeting.
5. Nearly 1 in 4 Gen Zers Use Cash for the Majority of Purchases
Roughly one-quarter (23%) of Gen Zers report using cash for the majority of the purchases they make. And they’re using cash for a variety of types of transactions, including clothing, groceries, and nonessential purchases like coffee and takeout food.2
I feel compelled to add that many people, including me, don’t consider coffee nonessential — despite this study’s results.
In the study, conducted by The Harris Poll, Gen Z respondents said they prefer to use cash instead of other forms of payment because it helps them budget their money. Gen Zers also said using cash when shopping requires them to be more thoughtful about their purchases.
6. The Majority (82%) of Adults Own a Credit Card
Credit cards allow us to buy something today and pay for it later, and some cards allow cardholders to earn rewards for making purchases with their cards. If you lose your credit card, you can promptly call your credit card company and order a new one. But if you lose a stack of money, large or small, your options for replacing it are few and far between.
For these reasons, it’s no surprise that 82% of adult consumers in the U.S. own a credit card.3
7. Credit Card Ownership Grows as Family Income Rises
People who earn a relatively high income may look for more ways to spend their money than those who earn less. And the more you spend, the more it can help to use a credit card.
Only 46% of adults in the U.S. with an income less than $25,000 own a credit card.3 And 56% of those individuals carry a balance from month to month at least once per year, which means they may be subject to costly interest expenses.

As income levels rise, the likelihood of owning a credit card also rises. Almost all adults in the country who earn more than $100,000 annually — a staggering 97% — own a credit card. Of this group, only 37% carry a balance from one month to the next at least once per year.
8. Most Adults Over the Age of 60 Have a Credit Card
The median retirement age in the U.S. is 62.4 People who’ve spent the majority of their years toiling to earn a paycheck look forward to retirement as a time when they’ll be able to relax and maybe cross some activities off their bucket list.
Acquiring a credit card probably isn’t going to make many people’s bucket lists, but that hasn’t stopped people over the age of 60 from owning them at a higher rate than any other age group.
More than nine out of 10 people aged 60 and older in the U.S. own a credit card.3 But only 39% of cardholders over the age of 60 carry a balance from one billing period to the next within a 12-month time frame.
Here is a breakdown of card ownership and balances based on age:
Age | Credit Card Ownership Percentage | Percentage of Cardholders Who Carried a Balance |
---|---|---|
18-29 | 65% | 45% |
30-44 | 80% | 53% |
45-59 | 86% | 54% |
60+ | 91% | 39% |
The 60-plus demographic is also among the most responsible when it comes to paying off their balances each month. The age group with the lowest levels of card ownership is those aged 18 to 29. Less than two-thirds, or 65%, of this category own a credit card.
9. Asian Adults Are More Likely Than Other Ethnicities to Own a Credit Card
In 2023, the real median income of Asian households was $112,800. For some perspective on that figure, the next-highest median household income figure by any one ethnic group was more than 20% lower than that earned by Asian households, according to the U.S. Census Bureau.5
Asian adults also have higher rates of credit card ownership than any other demographic group in the U.S. The majority (90%) of Asian adults own a credit card. Of those, only 24% report carrying over a monthly balance at least one month per year.3
10. Global Cash Transactions Are Declining
Anyone who’s regularly used a credit card in the 21st century has probably noticed the transformation of the point-of-sale experience Customers used to hand their cards over to cashiers to complete their transactions.
But now, they typically can complete a purchase without assistance, whether that means swiping, inserting, or tapping their card on a terminal.

The convenience of paying with a credit card has contributed to a decline in cash use at points of sale. Cash purchases account for approximately 16% of the value of global point-of-sale transactions. By 2027, industry experts expect the value of global point-of-sale transactions made via cash to drop to 11%.6
11. Credit Cards Are the Most Popular POS Payment Method
After a long day of shopping, reaching the register can feel like crossing the finish line . You’ve endured the traffic while traveling to your shopping destination. You’ve braved through crowded corridors of shoppers and in-store displays to pick your items.
Now that you’ve finished shopping, you expect a quick and easy purchase experience. Using cash can prolong a point–of–sale transaction — you must first count and hand the register attendant the money and then wait for your change. But using a credit card for the transaction eliminates the need for handling cash at all.
Credit cards are the leading payment method at the point of sale in the U.S., accounting for 42% of the value of all such transactions.6
12. About 1 in 3 eCommerce Transactions Are Via Credit Card
In-person shopping requires you to complete a number of tasks before you even get to your shopping destination. You have to make sure your car is full of gas, you know which stores you need to visit, and ensure you’re dressed to spend time among your fellow shoppers. And, oh yeah, don’t forget to bring your wallet.

But consumers who engage in online shopping can purchase goods and services from businesses around the world from the comfort of their own couch. Completing an online transaction requires just two primary elements: an internet-connected device and a payment method.
Credit card transactions account for 32% of the value of all U.S. eCommerce transactions, behind digital wallets at 37%.6
Unsurprisingly, cash is one of the least popular payment methods for eCommerce transactions. Just 1% of the value of eCommerce transactions comes from cash-on-delivery payments.
13. U.S. Credit Card eCommerce Payments Expected to Decline
The lack of teleportation solutions means that online purchases aren’t well-suited for cash payments. Until science catches up with science fiction, consumers will have to rely on other methods to complete purchases they make online.
Credit cards provide a popular way of making online payments, but they’re not expected to be as popular in the future. Where 32% of the value of eCommerce transactions came from credit card purchases in 2023, experts expect that figure to plummet to 22% by 2027.6
What’s causing this shift in consumer payment preferences? The rise in use and merchant acceptance of payments originating from digital wallets. Experts anticipate that more than half of all the value of eCommerce transactions (52%) will come from digital wallets in 2027.
14. 65% of U.S. Adults Have Used Digital Wallets Recently
Physical wallets are kind of like Trapper Keepers for adults. They allow us to store money, payment cards, and other important items, such as our driver’s license or insurance cards, in one convenient case or pouch.

Now, digital wallets can store the payment details of your credit cards, debit cards, and gift cards. Digital wallets are growing in popularity in the U.S. and internationally. The total value of digital wallet transactions in 2023 was $9 trillion, a figure that’s expected to grow to more than $16 trillion in coming years.7
Nearly two-thirds, or 65%, of adults in the U.S. have used a digital wallet recently.
15. More Than Half of Americans Use Digital Wallets More Frequently Than Traditional Payment Methods
If you walked up to someone on the street in a U.S. town and asked them if they’ve ever used a digital wallet before, the odds are they’ll say they have. Of course, they may first wonder why a stranger is asking about their payment preferences.
But 53% of Americans use digital wallets more than other forms of payments, and another 10% use digital wallets as often as other payment types.7
Americans have options when using digital wallets. In 2023, more Americans used PayPal’s digital wallet than those offered by Google, Apple Pay, and Samsung Pay.
Those between the ages of 18 and 26 use digital wallets often. More than 90% of people in this age group responded that they use digital wallets as their primary method of payment while shopping.
16. More Than 50 Billion Pieces of Paper Money Circulate in the U.S.
Much of this article has covered how forms of payment other than cash are rising in popularity while the good old dollar slinks off into the sunset. But that’s not to say that there isn’t still a lot of cash in circulation today.
It’s hard to imagine one billion pieces of paper, let alone 50 billion, but that’s how many pieces of paper money are in circulation in the U.S. today.8
Here is a look at the denominations of currency in circulation (in billions), which also shows a rise in total currency since 2019:
Year | $1 | $2 | $5 | $10 | $20 | $50 | $100 | Total |
---|---|---|---|---|---|---|---|---|
2023 | 14.5 | 1.6 | 3.6 | 2.4 | 11.2 | 2.5 | 18.9 | 54.6 |
2022 | 14.3 | 1.5 | 3.5 | 2.3 | 11.5 | 2.5 | 18.5 | 54.1 |
2021 | 14 | 1.4 | 3.4 | 2.3 | 11.9 | 2.5 | 17.7 | 53.2 |
2020 | 13.1 | 1.4 | 3.2 | 2.3 | 11.7 | 2.3 | 16.4 | 50.3 |
2019 | 12.7 | 1.3 | 3.2 | 2.1 | 9.5 | 1.8 | 14.2 | 44.9 |
To put that figure into perspective, consider this — you could spend one million dollars every day for the rest of your life and still not come close to spending all the cash that’s in circulation in the U.S.
17. More Than 70% of Americans Don’t Mind Moving to a Cashless Society
Something about the phrase “cashless society” sounds intimidating, like a dystopian future where people have to pay for goods for services using bar codes that have been tattooed on their arms.
But cashless doesn’t mean moneyless, and adopting innovations in payments can help you manage your money and payments more efficiently.
Most people (71%) are comfortable or indifferent with the prospects of a cashless society.9 Furthermore, 28% of people in the U.S. feel awkward when paying for items with cash, a figure that soars to 49% among those who are 18 to 34 years old.
18. Credit Cards Top Cash and Debit Cards For Most Popular Payment Method For Second Consecutive Year
Credit card usage has grown in recent years. For each year from 2016 to 2021, either cash or debit cards topped credit cards as the most popular method of payment in the U.S. But something started to change in 2022.
That year, credit cards took over the top spot in a consumer’s preferences for payments, a trend that continued in 2023. Credit cards accounted for 32% of all payment transactions, compared to 30% for debit cards and just 16% for cash.10
Here is a look at how consumer payment choices have changed since 2020, and how credit cards have steadily risen as a preferred option:
Payment Type | 2020 | 2021 | 2022 | 2023 |
---|---|---|---|---|
Cash | 19% | 20% | 18% | 16% |
Check | 7% | 4% | 4% | 3% |
Credit | 27% | 28% | 31% | 32% |
Debit | 28% | 29% | 29% | 30% |
ACH | 12% | 12% | 13% | 13% |
Mobile Payment App | 3% | 1% | 1% | 1% |
Other | 5% | 6% | 4% | 4% |
As more forms of contactless payments become available and accepted in the U.S., it’s possible that credit card payments won’t hold the top spot forever.
19. Consumers Prefer Cash Over Credit Cards for Smaller Purchases
One attractive feature of credit cards is they allow you to purchase an item today and pay for it later. Credit cards are also useful for accommodating impulse purchases — which could be a good or bad thing, depending on your point of view. Credit-card-carrying consumers don’t need to worry about having enough cash in their wallets to complete a transaction.
But for smaller purchases, carrying sufficient cash is less of a concern. Consumers make an average of 15 in-person payments per month that are less than $25 each.10
They use cash to complete those transactions an average of 5.2 times per month, which is more often than they use credit cards and the same amount of times they use debit cards for purchases of the same value.
20. On Average, Americans Carry $74 in Cash
To those who aren’t ready to completely give up on carrying cash, the question looms: Exactly how much cash should you carry around with you as you go about your daily activities?
The answer to that question depends on factors such as the cost of living in your region and your ability to access other payment methods.
On average, Americans carry $74 in cash with them daily. There are considerable differences in the amount of cash individuals of different age groups carry.10
While the average is $74, here’s how that breaks down by age:
Year | 18 to 24 | 25 to 34 | 35 to 44 | 45 to 54 | 55 to 64 | 65 and Older | Average |
---|---|---|---|---|---|---|---|
2020 | $60 | $39 | $45 | $61 | $81 | $110 | $78 |
2021 | $50 | $47 | $47 | $57 | $77 | $101 | $67 |
2022 | $46 | $41 | $52 | $60 | $99 | $106 | $73 |
2023 | $39 | $44 | $53 | $68 | $94 | $116 | $74 |
As you can see, those aged 65 and older carry an average of $116 in cash daily in 2023. On the other hand, those aged 25 to 34 carry an average of $44 with them daily.
21. Consumers Keep Less Cash in Their Homes Following the Pandemic
The COVID-19 pandemic ushered in numerous changes to the way we live our lives, including the measures we take to safeguard ourselves against communicable diseases. People’s strategies for keeping cash on hand also changed during the height of the pandemic.
In 2019, consumers kept an average of $241 in their homes, offices, or vehicles.10 That figure soared to $408 in 2021 and $418 in 2022. As we move away from the epicenter of the pandemic, cash holdings have decreased year over year for the first time since 2018.
In 2023, consumers stored, on average, $369 in their homes, offices, or vehicles. Time will tell if we continue to decrease our cash holdings to levels last seen before the pandemic or if we continue to seek the comfort of keeping more cash within our reach.
22. Consumers Seek Cash Back More Than Any Other Type of Credit Card Rewards
One of the reasons you may prefer using your credit card over cash is that credit cards can allow you to earn rewards on everyday purchases. That’s where the two heroes of our story, cash and credit cards, team up.
The most popular type of credit card consumers seek is one that allows them to earn cash back on purchases. Nearly half, or 44%, of people who’ve recently acquired a credit card opted for a cash back card.11
Here’s a look at some of the categories consumers preferred:
Credit Card Type | Percentage Who Recently Acquired |
---|---|
Cash back | 44% |
Retail | 15% |
Secured | 14% |
Low Interest | 13% |
Co-Branded travel | 5% |
Cash back cards are far more popular lately than other types of cards consumers can acquire, including retail credit cards and secured cards.
23. Almost 50% of Consumers Demand Credit Cards That Reward Grocery Purchases
It’s no secret that the world is full of unique people, but, despite our differences, we all share many of the same needs. For instance, we all have to eat.
So, it’s no surprise that the most commonly cited type of purchase that credit cardholders want to be rewarded for is grocery store purchases. Just under half, or 47%, of people who recently acquired a new credit card sought one that rewards them for grocery purchases.11
The second most popular type of purchase people want credit card rewards for is gas purchases. And in third place? It’s right back to that other type of fuel , as 29% of those in the market for a new card want it to reward them for dining out or food delivery purchases.
24. The Number of General-Purpose Credit Card Payments Made Per Year Tops 153 Billion
The sheer number of credit card payments made each year is staggering. According to a Federal Reserve Payments Study, the number of general-purpose credit card payments made yearly has grown to 153.3 billion transactions.12 The total value of those transactions is $9.76 trillion.
Here is a look at how general-purpose card transactions and total payments have shifted since 2019:
Year | Number of Transactions | Overall Transaction Value |
---|---|---|
2019 | 127.4 billion | $7 trillion |
2020 | 124.4 billion | $7.04 trillion |
2021 | 144.6 billion | $8.84 trillion |
2022 | 153.3 billion | $9.76 trillion |
As other types of payments, including account-to-account solutions, gain in popularity, it’ll be interesting to see if credit card transactions continue to increase in number in the coming years.
25. Private-Label Card Transactions Are Declining
If you’ve ever made a purchase at a department store, you’ve probably had a store attendant ask if you want to sign up for the store’s credit card. Retailers issue private-label cards to build customer loyalty by allowing cardholders to earn benefits for using them.
Consumers make quite a few purchases, more than 12 billion in 2022, with private-label cards. But, according to the Federal Reserve, private-label transactions have declined by 2.1% recently.12
That doesn’t sound like a big drop, but the value of those same transactions has decreased by 18.1% year over year.
Credit Cards and Cash Remain Viable Financial Instruments
Your age, income level, or even the type of transaction you’re performing can influence your decision to use cash or a credit card — and preferences differ from person to person.
Though each has its unique benefits, cash and credit cards remain viable spending tools for consumers in the U.S. and around the world.
Data Sources:
1. https://www.federalreserve.gov/paymentsystems/fr-payments-study.htm
2. https://capitaloneshopping.com/research/cashless-statistics/
3. https://www.creditkarma.com/about/commentary/cash-is-king-for-gen-z-as-cash-stuffing-trend-catches-on
4. https://www.federalreserve.gov/publications/files/2023-report-economic-well-being-us-households-202405.pdf
5. https://www.cbsnews.com/news/retirement-age-65-most-workers-retire-at-62/
6. https://www.census.gov/library/stories/2024/09/household-income-race-hispanic.html
7. https://www.paymentsdive.com/news/worldpay-fis-digital-wallet-payment-pos-ecommerce/710961/
8. https://capitaloneshopping.com/research/digital-wallet-statistics/
9. https://www.paymentsjournal.com/is-the-u-s-ready-for-a-cashless-society/
10. https://www.businesswire.com/news/home/20240723681844/en/New-Marqeta-Research-Americans-Are-Happy-To-Swap-Physical-Wallets-for-Mobile-Phones-Contactless-Payment-Use-Trails-Key-Global-Markets
11. https://www.frbservices.org/binaries/content/assets/crsocms/news/research/2024-diary-of-consumer-payment-choice.pdf
12. https://www.forbes.com/advisor/credit-cards/shopping-for-a-credit-card/