Digital Payments Have More Growth In-Store
Consumer cash payments rose slightly from 2020 to 2021. Cash accounted for 19% of payments in 2020 and 20% in 2021, according to the Federal Reserve. (In 2019, cash was used for 26% of consumer payments.) During the same two-year time period, use of credit cards, debit cards and mobile payment apps increased as well.
The use of cash has steadily declined in favor of digital payments valued for convenience, security and benefits like loyalty points. When in-person shopping started to resume in 2021 however, the cash spend trend reversed slightly, reflecting increased spending across the board. Cash use will continue to decline, and digital payments will continue to grow.