Atlanta Federal Reserve reports a decrease in cash transactions with an increase in card usage.

The 2024 Survey and Diary of Consumer Payment Choice reveals a significant trend, with only 83% of respondents using cash for transactions, a decrease from the previous year, highlighting an accelerated shift towards digital payments like credit cards and debit cards. This transformation not only indicates changing consumer preferences but also emphasizes the critical need for enhanced cybersecurity measures as digital transactions rise.

Arjun Renapurkar

May 26, 2025

The latest survey by the Atlanta Federal Reserve paints a revealing picture of our payment habits: cash is no longer king. In the 2024 Survey and Diary of Consumer Payment Choice, only 83% of respondents reported using cash for transactions last October, down from 87% the previous year. This shift towards digital payments, especially credit cards which accounted for 35% of transactions, underscores a significant transformation in consumer behavior.

What stands out in the survey is not just the decline in cash use but also the stability in the usage of debit cards, which remained constant at 30%. This could suggest a level of comfort and trust that consumers place in debit cards, straddling the line between the tangibility of cash and the convenience of credit. Interestingly, despite the popularity of newer services like Buy Now, Pay Later (BNPL), their uptake is relatively modest. According to the survey, although a significant majority of consumers are aware of BNPL services, only 9.7% actually utilized these options within the survey period. This could indicate a cautious approach to adopting newer financial technologies, despite widespread awareness.

The transition away from cash and checks, which now account for a mere 3% of transactions, to more electronic forms of payments highlights an important shift in risk management. As noted in a Payments Dive article, credit and debit card fraud attempts are still a significant concern, with financial institutions marking debit cards as the most fraud-prone payment method.

This shift also has implications for financial institutions and fintech firms who must navigate the double-edged sword of convenience versus security. As digital payment methods increase, so does the need for robust cybersecurity measures. The decrease in fraud rates as noted in the Fed's survey might be signaling that efforts to enhance security are paying dividends, but the war against fraud is far from over.

Fintech companies have an opportunity to innovate in this space by developing solutions that not only enhance the convenience of digital payments but also fortify the security framework around them. At Radom, our on- and off-ramping solutions are designed to provide secure, seamless transitions between fiat and crypto currencies, reflecting our commitment to advancing payment security.

Moreover, the persistence of cash, despite its decreasing popularity, highlights a critical point: there remains a segment of the consumer population that values the anonymity, immediacy, and tangibility of cash. This underscores the necessity for a balanced financial ecosystem that caters to the diverse needs and preferences of all users, not just those who lean towards digital.

In conclusion, the ongoing evolution in payment preferences is a multi-faceted phenomenon reflecting broader societal shifts towards digitalization. For businesses and financial service providers, staying ahead means not just adopting new technologies but also enhancing the security and trustworthiness of these platforms. The shifting landscape offers a plethora of opportunities for those ready to innovate while maintaining a vigilant approach to security and consumer protection.

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