Cash Use Continues Its Decline

Cash Use Continues Its Decline – And What It Means for Your Organization

Published: February 2026  |  Author: Dale Erling 15+ years Experience  |  Reading time: ~8 min

Executive Summary

Cash use among U.S. consumers has declined substantially since the pandemic, and the trend has proven durable. Recent Federal Reserve data shows cash now accounts for only about 14% of consumer payments by number, while credit and debit cards together represent about 65%. Check use for bill payments has fallen to roughly 7%, and more than 90% of consumers prefer alternatives to paper checks for paying bills.

At the same time, contactless card payments, mobile wallets, and digital payment options have grown rapidly and are now expected by many consumers as part of a baseline payment experience. Global projections estimate cash will represent only 10% of point-of-sale transaction value by the end of 2025.​

For merchants, utilities, governments, and billers, these changes mean:

• Supporting multiple digital payment methods (cards, ACH, wallets, contactless) is no longer optional—it’s required to meet customer and constituent expectations.

• Cash remains important for small-value and backup transactions, especially for lower-income and older populations, so eliminating it entirely is often not feasible or equitable.

• Check payments are declining rapidly and should be discouraged in favor of online, mobile, IVR, and recurring payment options.

• Integrated, omnichannel payment experiences that work across web, mobile, phone, kiosk, and in-person channels are becoming table stakes.

• Fee-based payment programs and analytics-driven optimization can help organizations offset processing costs and adapt to evolving payment behaviors.

IntelliPay provides flexible, compliant, and integrated payment solutions designed specifically to help organizations navigate this transition—supporting both digital-first payers and those who still rely on traditional methods.

The Decline of Cash: From Pandemic Trend to Long-Term Shift

Consumers used less cash during the last years of and following the pandemic than before, and that shift has largely stuck, accelerating the move away from cash and checks toward cards, contactless, and digital wallets. Recent payment studies show that cash now accounts for a much smaller share of everyday transactions, especially for bill payments, while digital options have become the default for many consumers.

For merchants, governments, and billers, this is no longer a temporary “COVID trend” but a structural change in how people prefer to pay.

A New Look at Cash Use

Earlier Visa and The Strawhecker Group research found that 26% of respondents expected to use less cash following the pandemic than before, compared with 18% who expected to use more—a net 8% decline in intent to use cash. That intention has since translated into measurable behavior.​

More recent data from the Federal Reserve’s Diary of Consumer Payment Choice shows that:

• Cash accounted for about 14% of all U.S. consumer payments by number in 2024, while credit and debit cards accounted for roughly 35% and 30% respectively.​

• More than 90% of consumers report preferring something other than a paper check for bill payments, and check use for bill pay dropped to about 7% of bills paid in 2024.​

• Cash is still heavily used for small-value purchases, but its share for these transactions has dropped by more than half since 2016.​

Globally, cash’s share of point-of-sale transaction value has also fallen, representing only about 18% of POS value in 2021 and projected to fall toward 10% worldwide by the end of 2025, with North America leading the shift toward digital payments.​

The takeaway: cash is not disappearing, but its role is shrinking and becoming more specialized—concentrated in small value, in-person, and backup-payment scenarios.

Cards and Noncash Payments Keep Growing

Comparing the intent to use credit and debit cards with cash, earlier survey findings already showed a net 10% positive change in card usage expectations, with more consumers planning to use cards more often than to cut back. That momentum has continued.​

Recent Federal Reserve and global payments research points to several durable trends:

• Cards now represent the majority of consumer payments by number and value in many markets, with both credit and debit usage growing.

• Noncash payments overall have increased in both volume and value, as consumers and businesses move away from paper methods such as cash, checks, and money orders.

• Integrated, in-platform payments—where payments are embedded directly into software, platforms, and portals—are growing rapidly as SaaS and vertical platforms seek to control the payment experience end to end.

As Jared Drieling of The Strawhecker Group noted, “This is a secular trend we’ve been seeing for some time,” with card use continuing to grow at the expense of cash and checks.​

Younger consumers, in particular, are adept at using debit and credit cards and have used cash and checks far less than older consumers, reinforcing this long-term shift.

Contactless and “Tap to Pay” Are Now Expected

Virus-wary consumers helped kick-start the adoption of contactless cards and tap-to-pay, but usage has stayed high well beyond the pandemic. Earlier research showed that of consumers who had a contactless card, 60% used it for at least half of their purchases, and more than half expected to increase their use of contactless features over time.

More recent findings confirm that:

• Consumers continue to favor digital and contactless payment instruments in stores, perceiving them as faster and more convenient than cash and checks.

• Mobile phone–based payments—often using the same contactless rails as cards—have grown from an average of four monthly payments in 2018 to about 11 per month in 2024.​

• Many consumers now expect a frictionless, low-latency payment experience, and even small delays or declines can drive abandonment and lost revenue.

In short, tap-to-pay is no longer a novelty; it is part of the baseline payment experience for a growing share of your customers and constituents.

Mobile and Digital Wallet Use on the Rise

The original “Purchasing in a Pandemic” report showed that many consumers intended to use mobile or digital wallets more, with about one-third expecting to increase wallet usage and only a small minority planning to decrease it. That intent has since materialized in day-to-day payment behavior.​

Today:

• Digital wallets such as Apple Pay, Google Pay, and PayPal have become mainstream and are key drivers of real-time and instant payments adoption.​

• Digital wallets have helped accelerate the decline of cash across regions, contributing to projections that cash will represent only a small share of POS transaction value by the mid-2020s.​

• Businesses are increasingly offering digital payouts and instant disbursements via cards and wallets to meet expectations for faster money movement.

For utilities, municipalities, and service providers, supporting digital wallets is no longer a “nice to have” for younger payers; it is part of meeting baseline expectations for convenience and speed.

What Competitors Are Emphasizing—and What’s Often Missing

Some payment providers focus on high-level narratives about the “cashless future” without connecting the dots to the practical realities of implementation for merchants and billers. However, several important areas are often under-addressed in these discussions:

• The ongoing importance of cash as a backup method and for financial inclusion, especially for lower-income and older consumers.

• The specific needs of government, utility, and public-sector billers that must support multiple channels (online, phone, in-person, kiosk) while staying compliant with card brand and regulatory rules.

• Practical migration paths from cash- and check-heavy environments to digital-first, omnichannel payment experiences—without leaving any groups behind.

• Fee-based models, service fees, and convenience-fee programs that can help reduce processing costs while maintaining compliance.

This is where IntelliPay’s focus and experience set it apart.

What This Means for Merchants, Governments, and Billers

Drieling said, “Coming to a merchant discussion and being knowledgeable around the behavior is the first step.” The second step is choosing flexible solutions that can adapt to those behaviors in real time.​

Given current trends, organizations should:

• Offer multiple digital options: credit, debit, ACH, digital wallets, and contactless card-present payments, so payers can choose how they want to pay.

• Maintain cash as a supported option where needed, especially for in-person, small-value, and vulnerable populations, while nudging digital adoption with design and communications.

• Reduce reliance on checks by promoting online, IVR, and recurring payments for bills and fees.

• Invest in integrated, omnichannel payments that unify online portals, mobile, in-person, kiosk, and agent-assisted channels into a single, consistent experience.

• Use payment data analytics to understand behavior by channel, amount, and segment, then optimize messaging, fee strategies, and channel mix accordingly.

The goal is not simply to “go cashless,” but to provide the right mix of payment choices, at the right time, in the right channels, for your community or customer base.

How IntelliPay Helps You Respond to Changing Payment Behaviors

IntelliPay is a leading provider of integrated in-person and online digital payments for businesses, governments, and organizations of all sizes. Our turnkey cloud-based platform delivers safe and secure traditional and fee-based credit card payment options that reduce processing costs and are quickly and easily added to existing websites and mobile applications.​

Building on today’s payment trends, IntelliPay helps you:

• Support the full spectrum of payment behaviors: card, ACH, digital wallet, recurring, contactless, and cash, across online, mobile, IVR, kiosk, and in-person channels.

• Implement fee-based and convenience-fee programs designed to lower or offset processing costs while maintaining card brand and regulatory compliance.

• Provide frictionless, low-latency payment flows that reduce abandonment and improve satisfaction, in line with what modern consumers expect from leading platforms.

• Leverage real-time reporting and analytics to monitor channel usage, payment types, and trends, so you can plan for declining cash and growing digital usage with confidence.

• Integrate payments into your existing portals, software, and back-office systems, minimizing IT lift while modernizing your pay experience.

As consumer payment behavior continues to evolve, merchants, governments, and organizations need flexible solutions that align with shifting preferences rather than trying to force old processes onto new expectations.

Frequently Asked Questions

Is cash going away completely?

No. While cash use is declining substantially—falling to about 14% of consumer payments by number in 2024—it remains an important payment method for small-value purchases, in-person transactions, and as a backup option, particularly for lower-income and older consumers. The goal for most organizations should not be to eliminate cash entirely, but to provide a balanced mix of payment options that meet the needs of all customers and constituents.

Should my organization stop accepting cash?

For most businesses, governments, and utilities, eliminating cash entirely is not advisable. Cash remains critical for financial inclusion and serves as a backup when digital systems are unavailable. However, you should actively promote and prioritize digital payment options—online, mobile, IVR, and contactless—to reduce manual handling, improve cash flow, and meet the expectations of the majority of your payers.

What are the main benefits of accepting digital and cashless payments?

Digital and electronic payments offer several key advantages:

• Faster processing and improved cash flow: Electronic payments post more quickly than cash or checks, improving financial planning and cash flow management.

• Reduced manual handling and administrative costs: Less time spent counting, reconciling, and depositing cash or processing paper checks.

• Better data and analytics: Digital payments provide transaction data you can use to understand customer behavior, optimize channel mix, and improve service.

• Enhanced customer convenience: Payers can pay anytime, anywhere, using their preferred method—online, mobile, or IVR—reducing late payments and improving satisfaction.

• Lower risk of theft and errors: Digital payments are more secure and reduce the risk associated with handling and transporting cash.

What digital payment methods should we offer?

To meet diverse customer expectations, consider offering:

• Credit and debit cards (in-person and online)

• ACH/eCheck (for lower-cost online and phone payments)

• Digital wallets (Apple Pay, Google Pay, PayPal)

• Contactless card payments (tap-to-pay at in-person locations)

• Recurring/autopay options (for bills and subscriptions)

• IVR (phone) payments (for those who prefer not to use web or mobile)

Offering multiple options ensures inclusivity and maximizes the likelihood that each customer can pay using their preferred method.

How can we reduce reliance on paper checks?

More than 90% of consumers prefer alternatives to paper checks for bill payments, and check use for bills has fallen to about 7%. To accelerate this shift:​

• Promote online, mobile, and IVR payment options prominently on bills, websites, and communications.

• Offer incentives for enrolling in autopay or recurring payments.

• Provide clear, simple instructions for setting up electronic payments.

• Communicate the benefits: faster posting, no need to mail, reduced risk of late fees.

• Gradually phase out check-only options where feasible, while maintaining support for those who need it during a transition period.

What is a contactless or “tap-to-pay” payment?

Contactless payments use near-field communication (NFC) technology to allow customers to pay by tapping their card, phone, or wearable device near a payment terminal. This method is faster and more convenient than swiping or inserting a card, and it has become a baseline expectation for many consumers. Contactless card payments and mobile wallet transactions (Apple Pay, Google Pay) both use the same NFC technology.

What is a mobile or digital wallet, and why does it matter?

A mobile or digital wallet is an app (such as Apple Pay, Google Pay, or PayPal) that stores payment card information securely on a smartphone or other device. Wallets enable fast, contactless in-person payments and streamlined online checkout. Digital wallet usage has grown significantly, and they are now a key driver of real-time and instant payment adoption. Supporting wallets is essential for meeting modern customer expectations, particularly among younger and tech-savvy populations.

Can we use fee-based or convenience-fee programs to offset processing costs?

Yes, when implemented correctly and in compliance with card brand rules and applicable regulations. IntelliPay specializes in compliant fee-based payment programs that can help you reduce or offset credit card processing costs. These programs are particularly common in government, utility, and education sectors. It’s important to work with a provider that understands the specific rules for service fees, convenience fees, and surcharging, and can help you design a program that works for your organization and your payers.​

How do we transition from a cash- or check-heavy environment to digital payments?

A successful transition involves:

• Start with education: Communicate the benefits of digital payments clearly and repeatedly through bills, websites, social media, and in-person channels.

• Offer multiple digital options: Don’t force everyone to one method; provide choices (cards, ACH, wallets, IVR, online, mobile).

• Provide support and training: Offer tutorials, videos, help desks, and in-person assistance for those who need it.

• Phase gradually: Encourage digital adoption while maintaining support for cash and checks during a transition period.

• Monitor and adjust: Use payment data and analytics to track adoption, identify friction points, and refine your approach over time.

• Maintain equity and inclusion: Ensure vulnerable populations and those without access to digital tools can still pay easily and affordably.

What should we do about payment declines or failed transactions?

Payment declines—especially “soft declines” that are temporary—can often be recovered and represent a significant opportunity to reduce lost revenue. Best practices include:

• Implementing intelligent retry logic that attempts the transaction again at an optimal time (later in the day, next morning, on common paydays).

• Communicating with customers via email or text when a payment fails, prompting them to update their payment method or add funds.

• Offering alternative payment methods (a second card, ACH, digital wallet) at checkout or in follow-up communications.

• Using a payment platform with built-in decline management and recovery features.

IntelliPay’s platform supports multiple payment methods and can help you design payment flows that minimize declines and maximize successful transactions.

How does IntelliPay help with the shift away from cash and checks?

IntelliPay provides a flexible, omnichannel payment platform that supports the full range of payment methods your customers and constituents expect—cards, ACH, digital wallets, contactless, recurring payments, and more—across online, mobile, IVR, kiosk, and in-person channels. Our platform is designed specifically for businesses, governments, and utilities that need to:​

• Support diverse payment preferences while reducing reliance on cash and checks.

• Implement compliant fee-based programs to offset processing costs.

• Integrate payments into existing websites, portals, and back-office systems with minimal IT effort.

• Access real-time reporting and analytics to understand payment trends and optimize strategies.

• Provide a secure, low-latency, frictionless payment experience that meets modern expectations.

For more information or to discuss how IntelliPay can support your payment strategy, contact us at 855-872-6632 option 1.