Cash vs. Credit Card Spending Statistics

Credit cards are used twice as much as cash for payments, and the gap has been increasing over the years. Below, you can find more statistics that help illustrate the popularity of both payment methods, including how transaction amounts and the demographics of users are shifting.

Important Takeaways

• Credit Crushes Cash: Credit card payments (used 35% of the time) double the current usage of cash (used 14% of the time) as a payment method.
• Headed in Opposite Directions: While the use of credit cards has seen a significant increase of 94% since 2016, cash payments decreased by 55% during the same period.
• Credit Appeals to All Ages: On average, all age groups prefer credit cards over cash, with preferences standing at 32% and 16%, respectively.
• Cash for Unbanked Consumers: Cash is used more by consumers who don’t possess a bank account.
• Cash Is Most Popular for Small Transactions: Cash remains the go-to payment method for small-value transactions.

Note: Statistics reflect data as of 2021-2023, which is the latest information available.

Market Share by Number of Transactions

Credit card use has increased by 94% since 2016, while cash payments have declined by roughly 55%. Credit cards are now used 2.5 times as payments as cash (35% of payments vs. 14%).

(Source: Diary of Consumer Payment Choice, Federal Reserve, 2025)

Market Share by Demographics

Market Share by Age

The prevalence of credit cards as the preferred payment method over cash is noticeable across all age groups, with younger individuals showing a greater preference.

(Source: Diary of Consumer Payment Choice, Federal Reserve, 2024)

Market Share by Income

People with higher income levels typically buy things using credit cards, whereas those with less income tend to rely on cash payments.

(Source: Diary of Consumer Payment Choice, Federal Reserve, 2025)

Market Share by Banking Status

Cash usage is more prevalent among consumers who don’t have a bank account, as you might expect. Non-cash options, like credit cards, are preferred by those who use traditional banking services.

Consumers without a bank account

Consumers with a bank account

(Source: Diary of Consumer Payment Choice, Federal Reserve, 2023)

Market Share for In-Person Payments

Usage for In-Person Payments

Cash stopped being more popular than credit cards for in-person payments around 2017. From 2016 to 2024, the popularity of cash decreased to 17%, while credit card use went up to 38%.

(Source: Diary of Consumer Payment Choice, Federal Reserve, 2025)

Average Number of Monthly In-Person Payments

Credit card remains the go-to payment method for small-value transactions (less than $25). On average, consumers make 6.0 of these payments per month using cash, compared to 5.2 payments using cash.

(Source: Diary of Consumer Payment Choice, Federal Reserve, 2025)

Total Amount Spent by Payment Method

In 2024, the value of credit card transactions was approximately four times higher than the value of cash transactions for in-store purchases. For online purchases, the transaction value for credit cards was 31 times greater than that of cash transactions.

Note: For online purchases, cash payments at the time of delivery were considered.
(Source: The Global Payments Report, FIS, 2025)

Payment Methods Online and In-Store

In-store, 40% of transaction value comes from credit cards, compared to 11% from cash. Online, credit cards make up 31% of transaction value, with only 1% from cash on delivery.

(Source: The Global Payments Report, FIS, 2025)