Cash vs. Credit Card Spending Statistics

Just like so many aspects of life in the 21st century, physical money is slowly giving way to a digital replacement. And while mobile payments are most popular in increasingly cashless societies like Sweden and Norway, Americans still prefer plastic, even though cash remains king for face-to-face transactions and cheap, everyday purchases.

On the other hand, credit and debit cards are used for 60% of $10-$100 transactions. The biggest value is reserved for electronic payment methods, which cover major expenses like bills and mortgage payments.

Key Cash vs. Credit Card Spending Statistics for 2026 - Editor’s Choice:

• Americans carried an average of $112 in cash on them in 2025.
• $2.41 trillion worth of cash was in circulation in the US by January 2026.
• The average credit card transaction value in the US is $98.
• US consumers have $1.42 trillion in revolving debt as of 2026.
• $6,712 - the average credit card debt for American consumers in 2025.

No clear winner can be declared on the basis of available data. Cash is widely used, but other methods of payment are rising in popularity. We’re still in the midst of a transitional period, and the outcome is difficult to predict.

84% of Americans have at least one credit card in 2026.

(The Federal Reserve)

Out of all the US citizens with credit cards in 2025, almost 52% of them carried balances from one month to another at least once.

88% of US consumers in 2025 said they will keep using cash in the future.

(Federal Reserve Financial Services)

The same report also found that only 3% of respondents will stop using cash entirely in the next two years.

14% of all payments in the US are made with physical money in 2026.

(Federal Reserve Financial Services)

According to the most recent data, cash has seen another year of decline, going down 2.5% compared to last year.

US consumers spend $812 billion in cash in in-store sales in 2025.

(Capital One)

The world's largest economy still relies heavily on cash, but credit cards dominate in-store sales, with $3.12 trillion in purchases last year.

28% of Americans wanted more credit cards in order to better maximize rewards in 2025.

(Fool)

The survey by Fool found that the biggest reason for getting more credit cards among Americans was to improve their credit scores, with 47% of respondents saying that. Also, 32% of the people surveyed wanted to have more credit and be able to spend more.

People use cash most often for everyday purchases, with more than half of transactions under $10 taking place in cash.

(US Federal Reserve Bank of San Francisco)

Even though cash represents a large volume of payments, the value of those payments is still low. 

It makes sense that the bigger the payment, the less likely one is to make it with cash. As the value of transactions rises, other forms of payment, like credit and debit cards, become more popular. 

Credit and debit cards combined account for 50%-60% of payments in the $10-$100 bracket. 

Above that limit, people typically use checks or automatic electronic payments to cover their most significant transactions, including mortgage repayments and debt installments. These two payment methods account for 50% of all transaction value.

The average value of credit card transactions in the US is $98.

(Statista)

There were twice as many individual transactions made in cash than using a credit card. The value of those transactions, however, is in favor of credit cards, with consumers spending 15%-20% more through credit cards in 2025.

Debit cards sit somewhere in the middle, with slightly fewer total transactions than cash and a slightly lower average payment amount than credit cards.

Cash is used more frequently in low-income households; 14% of transactions in households with less than $40,000 a year were made using cash in 2025.

(Gallup)

Comparatively, in households with an income of $100,000 or more, only 1% of respondents said they pay with cash for everything, while 18% claimed they don't use cash for any of their monthly purchases.

Revolving consumer credit in the US by January 2026 stood at $1.42 trillion.

(The Federal Reserve)

Credit cards aggregate revolving debt. By charging funds to your credit card, you’re borrowing that money from the bank with interest. When you repay $100 of your $500 debt at the end of the month, you can re-borrow (revolve) it again. 

Using a credit card responsibly is a great way to boost your credit score rating. However, using it incorrectly can cause immense problems in the long run.

There was $2.41 trillion worth of cash in circulation in the US by January of 2026.

(The Federal Reserve)

The advent of mobile payment platforms such as Apple Pay and Venmo has not hindered the increase of cash in circulation. From $240 billion in 1989 to $2.41 trillion in 2026, cash has not yet seen a year-on-year decline.

48% of American consumers in 2025 said "cash is king".

(Empower)

This represented a slight decrease from 52% of consumers believing this to be true in 2024.

53.4% of American consumers will not use cash for their weekly purchases in 2026.

(Capital One)

The share of cashless US consumers is growing steadily, going from 52% in 2025 to 53.4% in 2026.

According to an MIT study, credit cards make people spend more money - sometimes up to 83% more.

(Marketing Letters)

In this study, researchers asked subjects to bid on various items, including tickets for sporting events, in a blind auction. They were all told that the highest bid would get the item. One group was told that they would need to pay in cash, and the other that they would have to pay using their credit card. 

The conclusion was that paying with plastic makes people spend more money. The average cash bid for Celtics tickets was $29, while cardholders offered a whopping $61. 

It looks like the heavy marketing campaigns for credit card rewards programs have really done the trick. Combined with the fact that it’s much easier to part with intangible money than it is to let go of physical paper, this means that even the average tip amount is 15% larger when paying with a credit card.

The average credit card debt in America in 2025 was $6,712.

(TransUnion)

This represented an increase from $6,380 just a year earlier.

In 2025, some 58% of US credit card holders who maxed out their cards did so due to persistent inflation.

(Bankrate)

The same survey found that 3 out of 5 Americans maxed out their credit cards since the Federal Reserve maintained elevated interest rates through 2025.

Americans carry an average of $112 in cash in their pockets, purses, and wallets in 2025.

(CardRates)

The same survey found that 1 in 3 Americans use cash once a week.

Cash is used for 17% of in-person payments in 2026.

(Federal Reserve Bank of San Francisco)

Online shopping has not completely conquered the market yet. In fact, it isn’t even close; three-quarters of all transactions still take place in person.

From 2015 to 2017, the share of in-person transactions that took place in cash dropped by 1% per year. At the same time, while credit cards recorded a 4% increase in popularity during this period.

However, if you look at the current consumer spending habits, you will see that things have drastically changed, and cash is no longer the preferred payment method for these transactions.

42% of Americans have used virtual cards for purchases in 2025.

(Klarna)

Virtual, or electronic cards, are on the rise globally, with 4 out of 5 people in the US at least hearing about them in 2025. Of all the consumers who already used virtual cards for purchases, 72% stated that the main reason for opting for this payment option was convenience.

76% of gifts and person-to-person transfers took place in cash in 2025.

(US Federal Reserve)

It seems there’s still something magical about receiving a wad of cash as a present, as opposed to getting that same amount via your online bank account. Four times out of five, that’s how people choose to treat someone they care about. 

Credit cards are winning when it comes to general merchandise transactions. That’s a broad term describing all retail items that are not groceries. For these types of transactions, credit and debit cards are used 69% of the time, while cash holds a 20% share in 2025.

73% of US citizens in 2025 stated that they believe their country will become a cashless society.

(CardRates)

At the same time, however, 79% of respondents said that they don’t think the US should become a fully cashless society.

58% of Americans in 2025 said that businesses should not be allowed to go cashless.

(CardRates)

The same survey also found that 48% of US consumers were surprised that cash-only businesses still exist today.

54% of adults in the US like to have cash on them at all times in 2025.

(Gallup)

The percentage is highest among those 65 years and older, with 75% stating so.

Gen Z consumers used cash for only 8% of their total transactions in 2025.

(PYMNTS)

By comparison, Baby Boomers still used physical currency for 22% of their transactions.

Final Thoughts

Although cash remains one of the most popular methods of payment, credit cards are slowly but surely gaining ground. This is evident from the fact that the number of average credit card transactions per month has increased significantly in recent years.

When it comes to spending, people tend to use cash for smaller amounts and credit cards for substantial purchases. This is likely because they feel more comfortable carrying around a small amount of cash.

All things considered, it is clear that cash and credit cards are both important methods of payment in the US and that they will continue to shape the way people spend their money.