Exploring US Consumer Payment Trends and the Resilient Demand for Cash

The Federal Reserve System’s FedCash® Services has disclosed the findings from its 2022 research into the payment habits of US consumers, suggesting enduring trends established during the pandemic.

Key findings from the survey reveal a slight decline in cash payments, accounting for 18% of all transactions. On-person cash holdings witnessed a $5 increase from 2021, with the average consumer carrying $73. Store-of-value holdings also saw a modest increase, with a typical value of $418. In contrast, the share of in-person and P2P payments held steady at 81%.

Demographics play a significant role in payment preferences. Older consumers, for instance, use cash more frequently than their younger counterparts who prefer debit cards. Households with income less than $25,000 relied heavily on cash, constituting 36% of their transactions. Meanwhile, wealthier households earning more than $150,000 favored credit cards for half of their payments.

Interestingly, despite decreased cash usage among the younger generation (18-24 years), this group saw a significant increase in cash holdings. The results demonstrate a persistent demand for cash, highlighting its role as a reliable backup payment method and a store of value during uncertain times.

Due to its widespread popularity among certain demographic groups and its status as an option for contingency payments, ongoing investment is crucial in maintaining cash accessibility. Bill Budde, VP, of Banking Strategy and Solutions at Nautilus Hyosung America gives his perspective on what stood out to him in these reports.

Bill’s Thoughts:

“One of the things that stood out in these reports is the steady volume of in-person payments. Despite the pandemic, which led to a rise in online purchases, the data show a persistent demand for in-person buying. There are many experiential aspects to consider in order to maximize the customer experience during in-person transactions. The better the experience, the more likely customers are to repeat it, thus enhancing customer loyalty and market share.

Furthermore, the reports showed continued strong use of cash. While the proportion has decreased due to an increase in credit and debit card payments, cash transactions still account for about 18% to 19% of the total volume. Despite an expected dip during the pandemic, this rate has held steady over the last three years. This means a significant operational load on banks, retailers, and any businesses that accept payments. A large portion of these payments are made in cash, necessitating counting, reconciliation, storage, sorting, and daily deposits into the bank. Therefore, managing this large volume of cash as efficiently and effectively as possible is crucial for any business that accepts cash payments.”

 

Follow us on social media for the latest updates in B2B!

Image

Latest

DXpedition
Icom Powers 3Y0K : Ham Radio’s Most Ambitious DXpedition to Remote Bouvet Island Part 1
July 11, 2025

Bouvet Island sits at the edge of the world. It is frozen, uninhabited, and almost impossible to access. Fewer people have set foot there than in space. That level of remoteness is exactly what makes it so valuable to amateur radio operators. The island ranks tenth on ClubLog’s list of Most Wanted DXCC entities,…

Read More
entrepreneurial success
The Hidden Key to Entrepreneurial Success: Build Momentum Through Personal Branding and Authentic Networking
July 10, 2025

What if the biggest pivot of your career started with a conversation?  In this episode of Professional Quotient, host Jason Winningham welcomes Fanny Dunagan, CEO and Content Strategist of PathLynks, LLC. Fanny shares her journey from high-pressure consulting in Singapore to founding her own media and branding company — and why learning to network…

Read More
Q2 2025
RM Q2 2025 Wrap Up
July 9, 2025

Rogue Marketing continues to lead with intention in a space often driven by noise. Q2 2025 reflected a strategic focus on substance, where each initiative supported long-term brand growth. The team transformed internal recognition efforts into enduring brand assets and refined event strategies through immersive, results-driven experiences. Website launches during the quarter balanced visual…

Read More
amateur radios
Hamvention Spotlight: Emergency Preparedness Led PrepHam Paul to Amateur Radios and a Rising Voice in the Field
July 9, 2025

PrepHam Paul (K5VLP) celebrated his first visit to Dayton Hamvention by marking a major channel milestone. He hosted a giveaway of the  IC-2370B mobile radio from Icom to thank viewers for helping him reach 10,000 subscribers. His passion for emergency preparedness, rooted in his experience as an Eagle Scout and later studies in emergency management,…

Read More