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

⦿ Executive Snapshot

• What: The 2026 Diary of Consumer Payment Choice reveals stable consumer payment habits despite increased digital options.
• Who: Federal Reserve Financial Services, U.S. consumers.
• Why it matters: The findings underscore the continued importance of cash as a payment method and highlight demographic differences in payment preferences.

⦿ Key Developments

• Cash remains the third-most-used payment instrument among consumers for six consecutive years, with credit and debit cards making up two-thirds of all payments.
• 76% of consumers carried cash in 2025, averaging $69, with 45% storing an average of $364 in cash for savings or emergencies.
• Four out of five consumers used cash in the last 30 days, and 90% plan to continue using cash in the future.

⦿ Strategic Context

• Payment preferences have stabilized in recent years, showing gradual shifts in consumer behavior as technology advances.
• The survey has been conducted annually since 2016, providing insights into the evolving role of cash in the U.S. economy.

⦿ Strategic Implications

• Immediate implications include the recognition of cash's resilience as a payment method amid digital advancements.
• Long-term implications suggest that cash will continue to serve as a backup payment option and a store of value for many consumers.

⦿ Risks & Constraints

• Potential risks include the slow adaptation of consumers to new payment technologies, which may hinder the growth of digital payment adoption.
• Competition from emerging payment technologies could disrupt the stability of cash usage in the long term.

⦿ Watchlist / Forward Signals

• Future developments to watch include the impact of new payment technologies on consumer preferences in the coming years.
• The Federal Reserve's ongoing analysis of payment trends will be critical in understanding the future role of cash in the payment landscape.