The Green Sheet Online Edition
June 8, 2026 • 26:06:01
News Briefs
Despite rise of digital options, cash usage continues unabated <- click to read full story
Consumers continue to rely on cash despite the growing number of digital payment options available, according to the Federal Reserve's newly released 2026 Diary of Consumer Payment Choice. The annual survey found cash usage has remained steady for the past three years as the third most-used payment method among consumers.
Participants in the study made an average of 47 payments per month in 2025. Credit cards accounted for 16 payments monthly, followed by 15 debit card payments, six cash payments, six ACH payments, and four payments made through mobile apps, checks or other methods.
The Fed reported that 76 percent of consumers carried cash in 2025, with an average of $69 on hand. Nearly half of respondents also stored cash elsewhere for savings or emergencies, averaging $364. Four out of five consumers used cash within 30 days of the survey, and 90 percent said they planned to continue using it in the future.
"The consistency of cash and card use over the last three years suggests cash remains a stable payment method amid the rise of digital options," Kathleen Young, executive vice president and chief of FedCash Services, said in a statement.
The survey also identified demographic differences. Adults 55 and older, lower-income households and rural consumers relied on cash more heavily than other groups. Rural consumers averaged nine cash payments per month, compared to six among suburban and urban consumers.
Embedded finance demand outpaces brand rollouts <- click to read full story
Consumer demand for embedded financial services is growing faster than many businesses can respond, according to new research from Galileo Financial Technologies, which is preparing to rebrand as SoFi Technology Solutions. The 2026 Galileo Integrated Financial Services Research Report found that while 80 percent of brand executives plan to launch embedded financial services, only 20 percent have done so.
The report, based on surveys of more than 2,000 U.S. consumers and 150 senior executives, suggests payment experiences are increasingly tied to customer loyalty. Half of consumers surveyed said they chose one brand over another because payments or refunds were easier, while 63 percent said they were more likely to continue using apps offering faster, simpler payment experiences.
Consumers also appear increasingly comfortable using brand apps for financial activities. More than half of respondents said they would use apps for instant refunds or in-app purchases, while 53 percent said they would accept direct deposits into app-based accounts.
Economic pressures are also influencing payment behavior. Nearly one-quarter of consumers reported changing payment habits during the past year because of rising costs, including using BNPL services, switching cards or favoring apps with stronger rewards programs.
The report found digital wallets and embedded payment features continue gaining traction, while many executives said compliance, fraud management and operational risk remain top priorities when selecting embedded finance technology partners.
State interchange laws could have severe consequences <- click to read full story
The Common Sense Institute, a think tank focused on free-enterprise economics, is warning that state laws banning interchange fees on the tax and tip portions of card transactions could create significant economic and operational consequences despite promises of merchant savings.
Illinois became the first state to pass such legislation with its Interchange Fee Prohibition Act, although implementation has been delayed pending legal appeals. Colorado recently approved similar legislation that would prohibit interchange on the tax portion of transactions, but Gov. Jared Polis vetoed the measure.
Using modeling techniques and prior payment infrastructure upgrade experiences, including EMV implementation, CSI estimated Colorado's law could reduce the state's gross domestic product by $1.43 billion over five years while cutting personal income by $1.1 billion. The think tank said those projected losses would exceed cumulative merchant savings from the law by more than 200 percent.
CSI also analyzed proposed Iowa legislation targeting interchange on tax amounts. The report projected the measure could reduce Iowa economic output by $67 million and eliminate 350 jobs during the first year alone. While merchants statewide could save an estimated $36.2 million annually, required POS upgrades and infrastructure modifications could cost roughly $82 million.
CSI added that savings would be concentrated among large merchants, while many smaller businesses could wait a decade or longer to recover implementation costs. The organization also questioned whether state-specific interchange restrictions are practically feasible within globally interconnected payment systems.
Fed advances 'skinny' payment account proposal <- click to read full story
The Federal Reserve Board voted to seek public comment on a proposal that could allow non-bank financial institutions, including fintech and cryptocurrency firms, to gain direct access to Federal Reserve payment rails through limited-purpose "skinny" master accounts.
Currently, most fintech and crypto firms must partner with federally insured financial institutions that already maintain master accounts with Federal Reserve Banks. The Fed's move comes shortly after President Trump issued an executive order directing regulators to revise policies that may be restricting innovation in digital assets and financial technology.
The proposal closely resembles a request for information issued by the Fed last year exploring limited master accounts for nontraditional financial firms. Under the concept, fintechs and crypto companies could directly clear and settle payments through the Fed while facing restrictions not imposed on traditional banks.
Unlike federally insured financial institutions, companies using skinny accounts would not have access to the Fed's discount window, intraday credit or interest-bearing balances held at Reserve Banks.
Access also would be limited to payment services using automated controls designed to prevent overdrafts. "The proposal would not expand or otherwise change legal eligibility for access to accounts or payments services from the Federal Reserve," the Fed Board said in a memo accompanying the request for comment.
The Fed Board also urged Reserve Banks to pause pending master account applications from non-bank financial institutions until a formal framework governing access is developed.
Mastercard obtains NY BitLicense <- click to read full story
Mastercard received a BitLicense from the New York State Department of Financial Services, allowing the company to conduct digital asset business in the state and expand into the settlement of stablecoins and other digital assets. The license was granted to Mastercard Transaction Services, the company's subsidiary responsible for money transmitter and cross-border payments activities.
The approval marks another step in Mastercard's growing stablecoin strategy. Earlier this year, Mastercard acquired BVNK for $1.8 billion. BVNK operates a platform connecting traditional fiat currencies and stablecoins, enabling payments across major blockchain networks in more than 130 countries. Stablecoins are digital assets pegged to fiat currencies, most commonly the U.S. dollar, and are promoted as faster and less expensive payment mechanisms using blockchain technology. Mastercard said combining BVNK's infrastructure with its own network will help create interoperability between traditional payment systems and digital asset rails.
"We expect that most financial institutions and fintechs will in time provide digital currency services," Jorn Lambert, Mastercard chief product officer, said in a statement.
New York's BitLicense framework is widely regarded as one of the most comprehensive digital asset regulatory structures in the United States, establishing standards related to consumer protection, cybersecurity and financial integrity.
"Clear regulatory frameworks play an important role in building trust and confidence as new forms of digital value move from experimentation toward practical application," Lambert said in a May 27 statement.
Federal ruling gives national banks win in Illinois interchange case <- click to read full story
A federal district court judge in Chicago permanently blocked Illinois from enforcing its Interchange Fee Prohibition Act against national banks, out-of-state state-chartered banks, federal savings associations and payment networks, dealing a significant setback to efforts to ban interchange fees on the tax and tip portions of card transactions.
The ruling by Chief Judge Virginia Kendall of the U.S. District Court for the Northern District of Illinois followed a recent decision by the Illinois legislature to delay implementation of the law until July 1, 2027. Retailers, Illinois-chartered banks and credit unions are expected to appeal the decision.
The Illinois Bankers Association, American Bankers Association and America's Credit Unions argued the law was preempted by federal banking statutes, including the National Bank Act and Federal Credit Union Act. The Office of the Comptroller of the Currency supported that position in an amicus brief and later issued guidance affirming that federal law permits national banks and federal savings banks to charge interchange fees.
The ABA and its co-plaintiffs called the ruling "an important step toward preserving a consistent, nationwide framework for electronic payments," while warning that Illinois-chartered banks and credit unions remain subject to the law.
The Merchants Payments Coalition criticized the decision and pledged continued legal challenges. Doug Kantor, general counsel for the National Association of Convenience Stores, said the OCC's interpretation of federal preemption would eventually be overturned. 
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