Cash in the USA – an Update

Three reports bring insight into the impact of the COVID-19 pandemic on payments in the US.

The 2021 Diary of Consumer Payment Choice gives good data suggesting that cash is holding up remarkably well, but its transactional use has fallen sharply. A report from CivicScience provides a different view of how the pandemic is changing online and mobile banking, less than other data suggests. CMSPI explains how three factors, two of which are pandemic related, are driving up the cost of payments for merchants. In passing it does mention that moving away from being paid in cash is part of the problem.

Cash transactions fall sharply in 2020

The Cash Product Office and Reserve Bank of Atlanta have issued the 2021 Diary of Consumer Payment Choice findings. The headlines are that the number of payments fell with the number of low value ‘day-to-day’ payments markedly lower. The value of payments rose as people consolidated their shopping buying online. Cash held at home rose sharply across every age and income group.