Research
2026 Diary of Consumer Payment Choice
In May, Federal Reserve Financial Services’ FedCash® Services released the annual Diary of Consumer Payment Choice (PDF) report from its ongoing research into the payment habits of U.S. consumers and the role of cash in the U.S. economy. The national survey revealed that U.S. consumers’ payment use remained largely consistent over the past three years, even amid technological changes and other activity in the payments ecosystem.
The continued stability of cash as a payment method, even amid the rise in digital options, reveals the importance of payments choice for U.S. consumers. For the sixth year in a row, it was the third most used payment instrument in the survey, while debit and credit cards accounted for two-thirds of all payments made by U.S. consumers. Additionally, survey data demonstrated that cash serves as a key backup payment option and store of value for many Americans.
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. 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.
Other key findings included:
- 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%).
- 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 last 30 days, and 90% plan to continue using cash 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.