2026 Diary of Consumer Payment Choice: Consumer habits hold steady as payment options grow

Consumer payment behaviors, including cash use, reflect three years of stability

CHICAGO--(BUSINESS WIRE)--For about 1 in 7 payments, consumers still pay with cash despite the growing proliferation of digital payment options, according to the 2026 Diary of Consumer Payment Choice (Diary), the annual survey from Federal Reserve Financial Services measuring the evolving role of cash in the U.S. economy.

Now in its 10th year, the national survey revealed that U.S. consumer payment use remained largely consistent over the past three years. Cash remained the third-most-used payment instrument among consumers for the sixth year, with credit and debit cards accounting for two-thirds of all payments. Findings continue to demonstrate more gradual shifts in consumer habits when compared to the advancement of payment technologies and increased payment options.

“The consistency of cash and card use over the last three years suggests cash remains a stable payment method amid the rise in digital options,” said Kathleen Young, executive vice president and chief of FedCash® Services. “Cash continues to remain a primary payment method for some, while serving as a key backup payment option and store of value for many Americans. This points to the importance of consumer payments choice.”

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 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.

The 2026 Diary of Consumer Payment Choice is available on the Federal Reserve Financial Services website.

About the Diary of Consumer Payment Choice

The Federal Reserve conducts the Diary of Consumer Payment Choice survey every year to understand U.S. consumers’ payment behavior, preferences and how consumer payments change from one year to the next. The latest survey was conducted in October 2025. Understanding the evolving role of cash in the U.S. economy through the Diary studies helps ensure FedCash Services is fulfilling its mission of meeting cash demand in times of both normalcy and stress, maintaining the public’s confidence in U.S. currency, and providing ready access to cash.

Federal Reserve Financial Services uses data from the Diary to understand consumer cash use and anticipate its ongoing role in the payments landscape. By tracking consumer payment transactions and preferences annually during the month of October, Federal Reserve Financial Services compares cash with other payment instruments, such as credit and debit cards, checks and electronic payment options. Diary participants also report the amount of cash on hand after each survey day, cash stored elsewhere and cash deposits or withdrawals. Analysis of the Diary data includes the impact of age and income on an individual’s payment habits and preferences, as well as cash stocks and flows at an individual level.

About Federal Reserve Financial Services

Federal Reserve Financial Services provides payment services and seeks to foster the stability, integrity and efficiency of the nation’s monetary, financial and payment systems. It offers a comprehensive suite of payment and information services offered to financial institutions. Visit FRBservices.org® for additional information.