Cash, Trust and Resilience in an Increasingly Digital Payment Landscape

Emergency Cash Holdings 2025

$364

Average amount of cash held by consumers for emergencies in 2025.

Percentage of Consumers Carrying Cash

76%

Proportion of consumers who carried cash during 2025.

Cash Payment Proportion

14%

Percentage of all payments made using cash in 2025.

§ 01 Executive Snapshot

What: The Federal Reserve's latest findings reveal that consumers are increasingly using both cash and digital payments, demonstrating a preference for a mix of payment options.
Who: The research is led by the Federal Reserve, with insights from Jim Petit of Giesecke+Devrient (G+D).
Why it matters: This shift highlights the importance of maintaining cash as a trusted payment method amid advancing digital technologies, ensuring resilience and consumer choice.

76% of consumers carried cash during 2025, reflecting its ongoing importance in financial preparedness.
Average emergency cash holdings increased from $306 in 2024 to $364 in 2025, indicating a growing reliance on cash for emergencies.
Cash accounted for 14% of all payments in 2025, making it the third most frequently used payment method in the U.S.

The ongoing evolution of payment methods has not replaced cash, which continues to serve distinct purposes, particularly in emergency situations.
Demographic trends show that cash use is significant among older adults, lower-income households, and rural communities, emphasizing the need for accessibility.

The coexistence of cash and digital payments suggests a need for payment systems to support both methods, enhancing consumer trust and resilience.
As digital payment systems evolve, preserving access to cash is essential for ensuring continuity and choice in financial transactions.

Digital payment systems are vulnerable to disruptions such as power outages and cyber incidents, which could limit access to electronic payments.
The shift towards digital may neglect the needs of certain demographics who rely more heavily on cash, risking exclusion from financial systems.

Future research and reports from the Federal Reserve on consumer payment choices will provide insights into evolving payment behaviors.
Observing trends in cash usage among different demographics will signal the importance of maintaining cash access in the payment ecosystem.

§ 07

What are the latest findings from the Federal Reserve regarding payment methods?

Consumers are increasingly using both cash and digital payments, showing a preference for a mix of payment options.

Why is cash still important in today's payment landscape?

Cash remains a trusted payment method and is crucial for financial preparedness, especially in emergencies.

How has the average emergency cash holding changed from 2024 to 2025?

The average emergency cash holdings increased from $306 in 2024 to $364 in 2025, indicating a growing reliance on cash for emergencies.

Who relies more heavily on cash according to demographic trends?

Cash use is significant among older adults, lower-income households, and rural communities, highlighting the need for accessibility.