Is the US Going Cashless? What You Need to Know and How to Prepare

U.S. consumers are busy and always on the go. When they stop at a store or coffee shop, they expect to purchase what they want without delay or any other hassle. Of course, how they pay plays a significant role in the ease and speed of their transactions.

Which is why digital payment methods are so popular. They’re convenient and often only require a quick tap of a card or device to complete the transaction. So, it’s no surprise that American consumers and businesses are leaving cash behind in favor of faster and more convenient payment methods.

However, choosing to forego paying directly with cash isn’t a choice for everyone. According to the FDIC, as of 2023, over 5.6 million U.S. households remain unbanked, making cash a staple. So, while the future of payments is digital, it’s also inclusive, leaving no customer behind.

This article will cover what your business can do to prepare for an inclusive digital payment transformation, where all customers can purchase what they need and want, however they choose to pay.

The Current State of Cash and Digital Payments in the U.S.

Cash payments are declining among most U.S. consumers, with the Federal Reserve reporting that it is the third most used payment method. While digital payment methods like contactless debit cards, credit cards, and mobile wallets are the most preferred payment types, cash remains king for specific consumer demographics. 

For instance, consumers in low-income households (i.e., with an annual income of $50k or less) use cash 28% of the time, compared to 13% among those with an annual income above $50k.

Age is also a relevant factor. Research shows that adults over 55 use cash 1.5 times more often than Gen Z and other young consumer demographics. Yet, despite the popularity of digital payment methods for their speed and convenience, the 2025 Diary of Consumer Payment Choice reveals that “More than 90% of U.S. consumers still intend to use cash as either a means of payment or store of value in the future.” 

However, cash is often the only way unbanked and underbanked individuals (4.6% and 14.2% of the population, respectively) can pay. While direct cash payments are on the decline for the majority of U.S. consumers in favor of modern digital payment methods, cash is a means of survival for others. 

Why the US Is Moving Toward Cashless

Consumer Preference and Convenience

There are only so many hours in a day. Spending unnecessary time waiting in long payment queues isn’t what anyone wants to do. Gen Z, Millennials, and other younger consumer demographics prefer digital payment methods for this reason and so many more. 

Mobile wallets, contactless payment cards, and other digital cashless payment options are fast and easy to use, making them appealing, yet also a natural choice for members of a digital society. However, for any society to function properly, it must be fair, meeting the needs of all of its members. Inclusive digital payment solutions are ensuring this happens, so all consumers can pay their preferred way.

Growth of Technology and Infrastructure

Significant advancements in digital payment technologies have greatly contributed to the upsurge of POS terminals across multiple industries and sectors. Of course, consumer demand for fast, easy, and secure ways to pay has played a significant role in businesses swapping cash drawers for secure and intuitive digital POS terminals.

Research shows that by 2028, the non-cash transaction value in North America will climb by 7.3%, or $338.3 billion. All indications suggest that it will continue to rise as more businesses adopt cutting-edge digital payment infrastructures to accommodate how their customers want to pay.

Business Efficiency and Security Benefits

Businesses across multiple customer-facing industries, such as hospitality, retail, and venue operations (to name a few), have long recognized the benefits that come from adopting digital cashless payment solutions, including: 

• Shorter queues 
• Low waiting times 
• Improved customer experience and operational efficiency
• Better guest retention
• Operational efficiency
• Fewer instances of internal and external theft.

Two top benefits of opting for inclusive digital payment solutions are improved operational efficiency and security. Reduced manual cash handling lowers labor and overall operational costs. Staff no longer need to count their register drawers or reconcile them at the end of their shifts. Nor do businesses have to arrange for armored pick-ups or deposit runs.

Reducing cash handling in your operations also creates a safer environment for both employees and customers. With no cash stored at the point of sale and all transactions digitally tracked, businesses significantly reduce the risk of theft, shrinkage, and fraud—while still offering accessible payment options for all customers

Why the US Is Unlikely to Go Fully Cashless Soon

Accessibility for the Unbanked and Underbanked

For some, paying directly with cash is preferred, but for others, it’s their only option. The FDIC reports that more than 25 million unbanked and underbanked households exist in the U.S. These families rely heavily on cash to purchase the goods and services they need to survive.

A fully cashless society would inhibit these households from obtaining what they need to live, deepening financial inequality en masse. Not only would this be a moral dilemma, but it’s also bad business. Here’s why—carving out a specific customer demographic by not accepting cash directly would lead to missed revenue opportunities. Instead, the onus is on businesses to accommodate all customers while delivering a modern and secure payment experience with inclusive digital payment solutions.

Privacy and Data Concerns

Customers who prefer cash often enjoy the privacy that comes from using it. The psychology behind payment choices reveals that some consumers don’t want a record of their purchase, specifically when it’s one they feel the need to justify (e.g., an expensive want, rather than a need, regardless of the price tag). That way, they can buy the item or service without a data trail/record that may haunt them later, leading to guilt or buyer’s remorse.

All payment transactions are tracked in a fully cashless society, creating a data trail. The fear of data breaches, identity theft, surveillance, and even how purchasing data is collected, stored, and used is concerning for today’s consumers. Businesses can put those fears to rest by choosing secure digital payment solutions that utilize strong encryption methods to protect sensitive consumer data.

Emergency and System Resilience

Most, if not all of us, have experienced a technical disruption or system outage in our digitalized world. When such outages or downtime occurs during the course of a consumer transaction, it can disrupt digital-only payments. In these instances, cash can be a necessary (and welcome) backup for any business until their digital payment systems are back up and running again.

Legal and Regulatory Barriers

Going fully cashless isn’t always a choice for many businesses. Some jurisdictions legally prevent businesses from going fully cashless in the interest of equity and respecting consumer payment preferences. States like New Jersey and Connecticut, and major cities like San Francisco and New York City, among others, have laws preventing this. However, it’s important to note that there is no federal law on the books prohibiting businesses from going fully cashless.

How Businesses and Consumers Can Prepare for a Mostly Cashless Future

For Businesses

The global economy is increasingly becoming more digitalized. More than ever, businesses must be able to evolve with the times. That’s why it’s best to adopt secure hybrid payment systems that accommodate cash-preferred and digital payment customers. That way, businesses can prepare for a mostly cashless future that works for all consumers.

Here’s what you can do to prepare:

• Upgrade your POS system with contactless payment and mobile wallet acceptance capabilities.
• Deploy extra security measures to protect sensitive customer data, such as ransomware mitigation and cloud-based system technologies.
• Research and opt for the most inclusive digital payment solutions, so no customer is left behind.

Ready Credit’s Cash-to-Card® Kiosks are secure and simple to use, ensuring your cash-paying customers can continue making purchases in your cashless-first premises. All they need to do is insert their cash into the machine, where they’ll receive a prepaid debit card for the same amount in return. From there, they can enjoy the convenience of a fast digital payment experience like everyone else.

For Consumers

Consumers can also take a proactive approach when preparing for the digital payment revolution by:

• Setting up mobile wallets
• Switching to online banking
• Setting up secure digital payment methods
• Keeping cash on hand for emergencies
• Committing to checking online account statements regularly for transaction errors or potential fraudulent activity 
• Creating real-time spending alerts.
• Using strong security settings in your Internet browser.
• Using strong digital identification verification on all payment accounts, such as multi-factor authentication (MFA) or Strong Customer Authentication (SCA).

How Ready Credit Supports the Shift Toward Cashless

Businesses must modernize and stay ahead of the competition to improve customer loyalty and boost revenue. As the U.S. economy continues to embrace the digital payment revolution, the responsibility is on businesses to ensure that cash-preferred and unbanked customers enjoy the same access and purchasing freedom as those who prefer digital payment methods.

Ready Credit’s inclusive and scalable digital payment solutions, such as Cash-to-Card® Kiosks and prepaid debit card programs, are bridging the gap between cash-only and digital payment users, ensuring all customers can make purchases however they choose.

Final Thoughts: The US Isn’t Fully Cashless – But Change Is Coming

Regardless of their payment preferences, consumers want a positive customer experience every time they make a purchase. The demand for digital payment methods will continue to rise in popularity as a means to that end. Even though direct cash payments are declining for the majority of the population, cash remains critical for millions of consumers, who rely on it for their everyday needs.

Adopting hybrid digital payment solutions that accommodate all customers, while also improving operational efficiency and on-premise security, is the key to adapting to and navigating the digital payment revolution together.