Although it seems as though digital payment systems are slowly replacing cash in everyday life, cash will by no means disappear by 2025. Very few people leave the house without any cash in their wallets. Whether it’s for parking meters, change, or tips, you never know when you might need it.
In some industries, cash payments have long since ceased to be the norm. In restaurants and bars in particular, card or e-wallet payments are becoming increasingly common, to the extent that some establishments no longer accept cash at all. While online payments are becoming increasingly popular in some sectors, cash payments still predominate in others. This is due to concerns about data protection and privacy.
Why do People Pay in Cash?
Data protection and privacy concerns are among the main reasons why some people still prefer cash payments over other, more convenient methods. Although online shopping and digital payments are popular because of their convenience, this often means that customers are serving up their data on a silver platter. Online shops, online banking websites, and gambling platforms that handle large sums of money are prime targets for cyberattacks and data breaches. That’s why many customers remain cautious about sharing their bank details and prefer to use anonymous payment methods.
While there are already several digital payment options that are anonymous, cash is still the most reliable method. This is true not only for data protection, but also for privacy reasons. In the gambling industry in particular, users attach great importance to pursuing their occasional hobby anonymously and without judgment. That’s why online gambling providers such as Cash to Code offer their customers the option of transferring their cash deposits using a barcode. To do this, players simply purchase a code with cash at a kiosk or vending machine, which can then be used immediately as real money at the online casino. This allows players to gamble without revealing sensitive bank details or their identity.
Who Pays Cash in the US?
Current studies show that despite the digital trend, cash still plays a role for the US population. Research by the Federal Reserve Bank of Atlanta found that in 2025, 83% of all adults in the US will pay with cash at least once a month. This means that more than four-fifths of all US adults pay with cash at least occasionally instead of paying with credit cards. These findings are reflected in the following demographic data:
According to Age
According to the Federal Reserve Bank of Richmond, customers aged 55 and older pay for 19% of their purchases in cash. Younger demographics, on the other hand, use cash only 10-14% of the time. Older people are therefore significantly more likely to pull out their wallets than their credit cards or smartphones to make payments. According to this study, consumer behavior has changed: in 2016, when the research started, all the age groups were using cash approximately 30 percent of the time. Now the study shows that both credit cards and mobile phones were used more frequently as payment methods in 2024; however, this statistic primarily applies to adults between the ages of 18 and 24. Among older generations, cash payments continue to dominate.
According to Income
The Federal Reserve Bank of Richmond also points out that income plays a significant role in determining preferred payment methods. Individuals in lower income brackets are more likely to use cash than those in higher income brackets. The study shows that households with an annual income of less than $25,000 pay for approximately 24% of their expenses with cash. Higher-income households earning over $150,000, in contrast, pay only about 9% of their expenses in cash.
According to Gender
Other studies show that payment preferences are also linked to gender. According to Finder, debit cards are currently one of the most popular payment methods for both women (41%) and men (31%), although women significantly prefer to pay by debit card. Men, on the other hand, prefer credit cards to debit cards. Still, 19% of the men surveyed said cash was their preferred payment method, compared to only 16% of women. In other words, men are more likely to use cash than women.
What is paid for in cash?
Current statistics from the Fed study mentioned above show that cash payments dominate for small amounts. For larger amounts, however, consumers are more likely to pull out their cards or use online transfer methods. Consumers use cash for:
- Small amounts: Purchases under $25, such as coffee to go or bus tickets, are still mainly paid for with spare change.
- Unforeseen situations: Some of the respondents also stated that they keep cash at home for “emergencies” such as power outages and network problems that would affect ATMs and online payments. An increase in cash withdrawals would also be expected before predicted storms.
- Tipping and informal payments: Tips, cash gifts, and small services are still mainly paid for in cash.
Even though online and card payments are becoming increasingly popular, cash payments still serve their purpose in certain cases.
Global Trends and Outlook
Globally, different trends can be identified when it comes to payment methods. Governments and banks in Scandinavia and China, for example, are increasingly pushing for the implementation of a cashless economy. In more rural areas and developing countries, however, such implementations are only a vision.
From the public’s perspective, the complete demise of cash is highly unlikely. While some increasingly appreciate the convenience of online payments, others don’t want to give up their cash reserves. According to the Fed, as long as no legislation requires the population to use digital methods exclusively, nothing will change in terms of cash’s secure place in society.
Outlook for the US: Payment Choice Act of 2025
In any case, cash is not going to disappear from the scene in the US anytime soon. The US government is responding to the growing trend toward online payments with the Payment Choice Act of 2025, which is intended to secure consumers’ right to pay with cash in brick-and-mortar stores. This means that any company with a physical location is required to accept cash as a payment method. Cashless payment methods are becoming increasingly widespread, and some stores have already moved toward no longer accepting cash. However, this act is intended to halt this movement and secure the role of cash in the US. This bill aims to promote financial inclusion in order to ensure that lower-income groups can also participate in consumption, as every customer should have the right to use cash.
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Alexander Grey
