The amount of cash Americans carry may surprise you. According to a Federal Reserve survey, in 2024, the average American had $67 in cash at any given time, and probably kept $306 in cash at a location at home.
There are so many electronic and digital options, why carry cash now? Americans have a variety of reasons.
Key takeout
There are many cashless payment methods
Despite the surge in cashless payment options such as Venmo, Cash App and Zelle, cash is a popular option for Americans who have completed their purchases, to name just a few. This is the third most used payment method, processed at 14% of transactions, after credit cards (35%) and debit cards (30%).
The amount of cash carried by Americans is declining. In 2023, for example, Americans had an average of $74 in cash and kept $369 in their homes. However, the number of monthly payments that Americans use cash (7) is stable, suggesting that cash has lasting potential.
Why cash is (almost) king
“Interestingly, the decline in cash usage appears to have been levelled over the past four years, partially due to giving customers a credit card swipe fee or offering cash discounts.”
“In particular, small transactions tend to be inadequately serviced by card-based transactions,” he adds. Americans keep cash on hand for a variety of reasons, including emergency situations, shifts, budgeting, habits and more.
In fact, there are seven main reasons why Americans continue to have cash, according to a study by Oz Shy, a senior policy advisor and economist at the Federal Reserve Bank of Atlanta.
It does not involve a fee for its use. It can be transferred back and forth between the buyer and seller. It allows financial settlements without intermediaries.
Uneven use
However, the desire to use cash does not feel uniform among all Americans. For example, low-income Americans (less than $25,000 a year) were twice as likely as Americans who used cash for 24% of their transactions and over $100,000 a year to use cash.
Additionally, Americans over 55 used cash for 19% of their transactions, while Americans ages 25 to 54 used cash only for 10% of their transactions.
This gap is likely to widen, with the number of mobile payments made by American consumers, from four payments per month in 2018 to monthly payments in 2024.
Cash usage between countries
The gap in cash sustainability can be seen on a global scale. According to Merchant Machine’s 2025 ranking of cash-dependent countries, cash was used for 78% of Romanian transactions, with the first slot being won.
Egypt, Kazakhstan, Bulgaria and Ukraine all used cash for more than half of their transactions.
In contrast, only 2% of Norwegians used cash to close their transactions in 2024, becoming one of the most cash-dependent societies.
Conclusion
The US is increasingly dependent on electronic and digital payment options.
But that doesn’t mean you need to give up on your cold, hard cash. If you plan to use it to save payments or economic value for your goods or services in the near future, it has something in common with 90% of US consumers.
