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Insights and Expertise

Cash, trust and are nearly instantaneous, and consumers can complete
purchases with a tap of a phone or smartwatch.
resilience in an The Federal Reserve's decade of consumer payment re-

search suggests payment habits evolve gradually rather
increasingly digital than abruptly. New technologies expand the range of pay-
ment choices available to consumers, but they do not nec-
essarily replace existing methods that continue to serve
payment landscape distinct purposes.

Consumers continue to use cash because it offers charac-
teristics that digital payments cannot fully replicate. It is
universally accepted, immediately accessible, requires no
technology or internet connection, and functions indepen-
dently of third-party networks or electrical infrastructure.
Cash remains a trusted foundation
for payment resilience
Perhaps the most significant finding from the Federal Re-
serve's latest research is not simply that Americans con-
tinue to use cash, but why they keep it. The growing num-
ber of consumers holding cash for emergencies reflects a
broader recognition that digital systems, while highly reli-
able, are not immune to disruption.

The research found that 76 percent of consumers carried
cash during 2025, while 45 percent stored cash separately
for savings or emergencies. Average emergency cash hold-
ings increased from $306 in 2024 to $364 in 2025, suggest-
By Jim Petit ing that more consumers view physical currency as an im-
Giesecke+Devrient portant component of financial preparedness.

or more than a decade, payment innovation This behavior highlights an important aspect of payment
has been framed as a transition from physical choice: consumers value not only convenience, but also
to digital money. Yet the latest findings from reliability and control. Power outages, severe weather
F the Federal Reserve reveal a different reality: events, cyber incidents, telecommunications failures and
consumers are not choosing between cash and digital pay- network disruptions can temporarily limit access to elec-
ments. They are choosing both. tronic payment systems. During these moments, cash pro-
vides immediate continuity because it functions indepen-
According to the 2026 Diary of Consumer Payment Choice, dently of electricity, internet connectivity and third-party
https://tinyurl.com/mr2jmr2p, cash remains an integral networks.
part of Americans' financial lives. Four out of five con-
sumers surveyed continue to use cash, 90 percent report For many consumers, that resilience creates trust. Cash
having no plans to stop using it, and nearly half now keep settles instantly, remains directly accessible, and works
cash on hand for savings or emergency preparedness. regardless of technology availability. Interestingly, while
only 16 percent of consumers in the study identified cash
The study also found that Americans made an average as their preferred in-person payment method, many more
of 47 payments per month in 2025, with cash accounting continue to use it regularly. This suggests that cash in-
for 14 percent of all payments, making it the nation's third creasingly serves as a trusted and dependable fallback op-
most frequently used payment method. These findings tion, even for consumers who primarily rely on cards or
demonstrate that while payment technologies continue to digital payments.
evolve, consumers continue to value flexibility and main-
tain a mix of payment options rather than relying on a Rather than indicating resistance to innovation, these
single method. findings demonstrate that consumers value having mul-
Consumer behavior tells a different tiple reliable ways to pay. As payment systems become in-
story than technology headlines creasingly digital and interconnected, maintaining access
to cash remains an important component of resilience,
Innovation in payments has been extraordinary. Digital helping ensure continuity, confidence, and choice across a
wallets have become mainstream, peer-to-peer transfers wide range of circumstances.
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