Federal Reserve Financial Services recently released the 2026 Diary of Consumer Payment Choice, an annual study of U.S. consumers’ payment habits. The findings show that U.S. consumers’ use of payment methods has remained stable amid technological change and other activity in the payments ecosystem.
For the sixth year in a row, cash was the third-most used payment instrument, accounting for about 1 in 7 payments. Debit and credit cards accounted for two-thirds of all payments made by U.S. consumers. Cash also remains a key backup payment option and store of value.
Other key findings from this nationally representative survey include:
- In 2026, consumers made an average of 47 payments per month. Notably, they made 16 payments with credit card, 15 with debit card and six with cash.
- In recent years, U.S. consumers’ preferences for in-person payment methods have stabilized, though the survey also reveals noticeable shifts over the past decade. More consumers now say they prefer using credit cards in person (38% compared to 24% in 2016), nearly equal to the amount who say they prefer debit (40%).
- Households earning less than $25,000 per year and adults 55 and older relied more on cash than other cohorts. Rural residents tended to use cash more than their urban and suburban counterparts — making an average of nine cash payments per month, compared to six cash payments made by consumers in suburban and urban areas.
- Most consumers (76%) carried cash in their pocket, purse or wallet in 2025, with the average amount totaling $69. Nearly half (45%) of consumers stored an average of $364 in cash elsewhere for savings or emergency purposes.
- Four out of five consumers used cash in the past 30 days from when they were surveyed, and 90% plan to continue using cash in the future.
