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50%+ of Americans willing to abandon cash entirely, Gen Zers among the holdouts

Tuesday, October 21, 2025 — 16:39:55 (UTC)

San Francisco, CA (October 23, 2025)--The Interledger Foundation (ILF), an organization building and advocating for an interoperable payments network, has released the first report of their three-part Future of Digital Finance Series, titled A Cashless Country and the Future of Banks–Consumer Perspectives. The first annual survey reveals that consumers are split on eliminating paper cash, with half (51%) of all respondents willing to abandon it entirely, and half (51%) of Gen Zers specifically citing privacy concerns as their reason for not giving it up yet.

The report also revealed that FDIC banks’ relative safety is overshadowed by both choice and convenience when it comes to consumer preferences, with only 56% of Gen Z aware that only traditional banks provide FDIC insurance–insuring up to $250,000 of their deposits–compared to 80% of Boomers. This uncovers both ingrained cash habits and a key misunderstanding of what makes a bank a bank, highlighting the potential loss of banks’ competitive advantage over increasingly prominent digital payments providers.

The Interledger Foundation’s three-part Future of Digital Finance Series explores the relationships between both consumers and businesses and the payment and finance ecosystem in the US. The first report in the series, A Cashless Country and the Future of Banks–Consumer Perspectives, reveals that the centrality of both cash as the standard currency and traditional banks as the vehicles for storing and moving money are shifting.

“Consumer’s willingness to move away from cash and the blurring lines between traditional banks and digital payments providers reveals the need for safe and affordable digital payments infrastructure across the US,” said Briana Marbury, President & CEO of the Interledger Foundation. “By paying attention to preferences, concerns and openness to change, it’s clear that there’s room in the market for open payments solutions that meet consumers’ evolving digital banking and payments needs.”

The reports are based on research conducted by market research firm Dynata, on behalf of the Interledger Foundation.

Among this year’s findings:

Payments applications are catching up to banks–and distorting consumers’ views of what banks are. Younger consumers view banking as a category of services that are not necessarily restricted to any particular institution. Only 56% of Gen Z consumers classify JPMorgan Chase as a bank, while 50% consider digital payments providers like Cash App a bank, despite its lack of direct FDIC insurance. When compared to the average across all generations, 64% of consumers categorize JP Morgan Chase as a bank, and 31% categorize Cash App and Chime as banks.

Digital-savvy generations aren’t necessarily all in on digital alternatives to cash. Over half of Gen Zers (51%), Millennials (53%) and Gen Xers (51%) are open to a cashless life, but even the most digitally native among them cite privacy and fee concerns as reasons to keep cash around. This reveals that moving to a cashless society will need to address clear concerns on costs and safety while overcoming deeply embedded habits in people’s lives.

When it comes to abandoning cash, consumer preference for the paper currency differs from their regular use. Over half (56%) of respondents noted that they still pay with cash at least weekly. This reveals deep-rooted habits that digital alternatives must match, including in both cost and convenience, if organizations want to guide consumers towards a fully cashless society.

Attitudes for abandoning cash differ by location and income. The willingness to move away from cash increases in more densely populated urban areas, where 58% of people say they’re open to going completely cashless. This is compared to only 40% in more rural areas. Willingness to move away from cash also increases with income, as only 42% of people who make less than $50k per year are willing, compared to 56% of those who make $150k or more per year.

The Interledger Foundation’s A Cashless Country and the Future of Banks–Consumer Perspectives report is based on responses from 1,004 consumers, ranging from 18 years old to age 60+, in all 50 US states. The full report can be found here.

About Interledger Foundation

Interledger Foundation is an organization building and advocating for an open, interoperable payment network where transactions are not limited to a particular bank, mobile money provider, or location. The organization works to increase access to digital financial services for the 1.4 billion people worldwide who are currently excluded from traditional banking systems through the Interledger Protocol (ILP). The organization works with partners to integrate its ILP into existing and emerging financial and payments infrastructures. It currently has large-scale projects underway with Wallet Guru, People’s Clearinghouse, and Chimoney. Learn more at: www.interledger.org

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Source: Company press release.

Categories: Reports and research