Keeping cash in the mix

There is no disputing it: digital payments dominate the payments mix. That doesn’t mean there is no place for cash, however. Several states, New York most recently, have passed laws requiring that merchants accept cash payments.

Now a pair of U.S. senators have introduced legislation to preserve cash as a form of payment nationwide. And they have the backing of a pair of trade associations: the National ATM Council and the Amusement and Music Operators Association.

The Payment Choice Act states that “United States currency should be treated as legal tender throughout the United States, and that every consumer should have the right to use cash as payment at retail businesses that accept in-person payments.”

The legislation, authored by Senators John Fetterman, D-Pa., and Kevin Cramer, R-N.D., also states that consumers should not be charged more when they pay with cash.

“It’s simple: if you’re open for business in America, you should take U.S. dollars,” Sen. Fetterman said in a statement. “We have millions of people in this country who don’t have access to bank accounts, and they must be able to go shopping with their hard-earned dollars.”

“Forcing the use of credit and debit cards or imposing premium prices on goods and services paid for with cash limits consumer choice,” Sen. Cramer added.

“Ensuring cash remains a viable payment option is vital for small businesses across the country,” said Brian Brotsch, president of the Amusement and Music Operators Association.

Fed finds cash payments remain prevalent

The 2025 Diary of Consumer Payment Choice (Diary), published by the Federal Reserve, shows that amid the increasing digitalization of payments, consumers continue to use cash and keep it handy. It may not be used as frequently as credit and debit cards, but it runs a respectable third place.

Cash accounted for 14 percent of consumer payments by number, in 2024, according to the Diary, while credit and debit cards accounted for 35 percent and 30 percent of payments, respectively.

“Even in a rapidly evolving payment landscape, where consumers increasingly use mobile devices to make payments both remotely and in person, U.S. consumers’ use of cash has remained largely consistent over the past four years,” said Kathleen Young, executive vice president and chief of FedCash services for the Federal Reserve Bank System.

“Holding steady at seven payments per month since 2020, the trends in this year’s survey suggest cash usage may have reached a baseline, maintaining relevance due to the ubiquity, accessibility and resilience of cash," she added.

The survey also revealed generational and demographic trends in cash usage. For example, households earning less than $25,000 a year and adults 55 and older were more reliant on cash than were other cohorts. In contrast, adults aged 18 to 24 were more likely to pay with a mobile phones, using their phones for 45 percent of all payments they transacted.

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