The short answer
No. Cash use has shrunk, but it hasn't disappeared. The Federal Reserve's 2026 study found more than 90% of consumers have no plans to stop using cash, and more than three out of four still carry it. Cash has been the third most-used way to pay for six straight years, and it's strongest for small, fast, in-person purchases.
In this article
"Nobody uses cash anymore."
If you own a business, you've heard it. Maybe you've said it. And it feels true. You tap your phone at the coffee shop. Your kids pay each other back with apps.
But "it feels true" and "it is true" are different things. The Federal Reserve has been measuring how Americans pay every year since 2016. Here's what the newest numbers actually say, and what they mean for your business.
Is cash really going away?
No. It's shrinking, slowly. But it isn't going away.
The Federal Reserve's 2026 study of how Americans pay found:
- More than 90% of consumers have no plans to stop using cash. Only about 5% said they'd already stopped, and about 3% said they planned to.
- More than three out of four consumers still carry cash.
- Cash was the third most-used way to pay for the sixth year in a row, behind debit and credit cards.
Federal Reserve researchers say cash use may have reached a "floor." Card and phone payments keep growing, but cash use has stopped falling off a cliff.
How much do people pay with cash?
Here's the clearest snapshot. In the Fed's 2025 study, which covered payments in 2024:
| Payment type | Share of all consumer payments |
|---|---|
| Credit cards | 35% |
| Debit cards | 30% |
| Cash | 14% |
Consumers made about seven cash payments a month, a number that hasn't changed since 2020.
Fourteen percent might sound small. But think about it at your register. If one in seven payments at your business is cash, that's a lot of customers who show up expecting to pay that way.
Is cash use still falling?
A little. The Federal Reserve Bank of Atlanta found that the share of people who paid with cash at least once in the prior 30 days dipped from 83% in 2024 to 81% in 2025. Phone payments are growing fast.
So the honest picture is this: cards are winning the big share, but cash is holding a steady, stubborn slice. And that slice is concentrated in certain kinds of purchases and certain kinds of businesses.
Where do people still use cash the most?
The Fed found cash is most likely to be used for payments under $25. It shows up more often at places like grocery stores and fast-food restaurants.
In the real world, that means the kinds of businesses where an ATM does the most good:
- Bars and nightclubs: covers, tips, and fast rounds
- Convenience stores and gas stations: small, quick purchases
- Barbershops and salons: cash tips and cash-only chairs
- Laundromats: machines and small purchases
- Festivals and events: cash-only vendors and fast lines
There's another pattern worth knowing. NCR Atleos, which runs one of the largest ATM networks in the country, found that its ATMs in low- and moderate-income neighborhoods see 38% more transactions per machine than those in wealthier areas. Cash matters a lot to a lot of people.
Why do people keep using cash?
The Fed points to a few reasons cash hangs on:
- Everyone takes it. Cash works when the card reader is down or the Wi-Fi is out.
- It's private. No app tracks where it went.
- It helps people budget. When the cash is gone, it's gone.
- It costs the buyer nothing to use.
- People keep it as a backup. Many people who mostly use cards still carry cash "just in case."
What does this mean for your business?
It means your cash customers aren't going anywhere soon. The question is whether you make it easy for them to spend with you, or send them out the door to find cash somewhere else.
An on-site ATM does that job. Your cash customers get cash without leaving. You don't have to keep extra cash in your register or offer cash back. And with free ATM placement, the machine costs you nothing. We supply it, fill it, and fix it, and you earn a share of every surcharge.
Want to see what an ATM could do at your business? Read how much a business can make from a free ATM. If you run a bar, start with does my bar need an ATM?
The bottom line
Cash isn't what it was 20 years ago. But it's far from dead. Nine out of ten people plan to keep using it, and it's strongest for exactly the kinds of quick, in-person purchases that small businesses live on.
Don't build your business for the payment habits people have on social media. Build it for the ones the Federal Reserve actually measures.
Common questions
Yes. The Federal Reserve's 2026 study found more than 90% of consumers have no plans to stop using cash and more than three out of four still carry it. Cash has been the third most-used payment method for six years running.
In the Federal Reserve's 2025 Diary of Consumer Payment Choice, cash made up 14% of consumer payments by number in 2024, behind credit cards at 35% and debit cards at 30%.
Slowly. The Atlanta Fed found the share of consumers who paid with cash in the prior 30 days fell from 83% in 2024 to 81% in 2025. But Federal Reserve researchers say cash use may be leveling off at a floor rather than disappearing.
For small, in-person purchases. The Federal Reserve found cash is most likely to be used for payments under $25, and more often at places like grocery stores and fast-food restaurants.
That depends on your customers. Going cashless can turn away customers who prefer or need cash. An on-site ATM lets you serve cash customers without keeping extra cash in your register.
Sources
- Federal Reserve Financial Services, "2026 Findings from the Diary of Consumer Payment Choice," 2026.
- Federal Reserve Financial Services, "2025 Diary of Consumer Payment Choice reveals cash remains relevant," May 2025.
- Federal Reserve Financial Services, "2025 Findings from the Diary of Consumer Payment Choice (full report)," 2025.
- Federal Reserve Bank of Atlanta, "Survey and Diary of Consumer Payment Choice," 2025.
- NCR Atleos (via Barchart), "New NCR Atleos U.S. Research Shows Strength of Cash and Its Critical Role in Financial Inclusion," 2025.