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Insights and Expertise

The decline of cash use by the numbers
Following are data points illustrating the decline in Cash usage is indeed plummeting.
cash usage over time. Yet for budgeters, unbanked
Cash usage falling fast: households, and for many others
during crises, physical money
• U.S. cash transactions dropped from about 40
percent in 2012 to 21 percent in 2020 and 16 per- remains crucial.
cent in 2024. – FDIC
• Global cash use sits at approximately 80 percent given the substantial financial burden it imposes on
of its 2019 level and is declining at about 4 per- businesses.
cent annually. – McKinsey &Co.
• U.S. cash purchases declined from 76 percent in Accepting cash presents notable operational hurdles,
such as managing security risks, ensuring an adequate
2015 to 48 percent in 2025. – Capital One Shop- supply of coins for change, and navigating the logistics
ping Research of depositing cash at bank branches that are becoming
• In the UK, cash fell to only 12 percent of POS less accessible. Additionally, governments have little
transactions in 2023 and is projected to hit 6 per- motivation to promote cash transactions, as it is often
cent by 2033. – McKinsey and Reuters associated with the informal economy and can lead to
• Australia dropped from 70 percent cash usage in decreased tax revenues.
2007 to 13 percent in 2022. – The Guardian
• U.S. ATM usage declined by about 6.75 millions A possible solution might be to implement a partial
mandate that requires businesses in essential sectors, such
households over five years. – Capital One as grocery stores and pharmacies, to accept cash payments.
• Globally, ATMs per 100,000 adults fell from 41 in This approach would ensure that individuals who
2020 to 39 in 2021. – Cleveland Fed depend on cash for managing their budgets and during
emergencies can still access vital goods and services.
Demographics, crises influence behavior:
Preserving access, not abandoning cash
• 5.3 million U.S. households were unbanked in With the rate of digitization in the world, one thing is
2024. – Capital One sure: the decline of cash seems inevitable. However, it is
• In 2021, about 3.5 million U.S. households were important to manage this transition with care to ensure
unbanked and relied exclusively on cash. – Bos- that vulnerable populations are protected. Cash remains
ton Fed a vital resource for budgeting, risk management and
• About 41 percent of U.S. adults had no cash ensuring financial stability for consumers with no access
transactions in a typical week in 2022, up from to bank accounts.
29 percent in 2018. – FDIC
• Heavy cash use correlates with lower income: 30 To ensure accessibility, it's important to implement
specific measures such as shared ATM networks, as well
percent of adults earning less than $30,000 year- as requiring partial cash acceptance for essential services.
ly used cash almost exclusively, versus 4 percent While cash may no longer dominate, its steady decline
earning more than $100,000. – FDIC demands attention to ensure it remains a reliable option
• Despite less usage, cash in circulation relative to when people need it most.
GDP has grown across countries since the early
2000s. – Wikipedia
PSE Consulting Senior Manager Michelle Comfort is a chartered accoun-
• In the UK, banknote circulation rose 23 percent tant with 20 years in professional practice and 18 years with PSE.
since the pandemic, even as transactions halved. Michelle specializes in auditing card scheme fees, pricing, feasibility
– The Guardian studies, benchmarking surveys and scenario profitability modeling for
• Many consumers find tangible cash helps curb acquiring, issuing and ecommerce. She also regularly leads acquiring
overspending, something digital payments don't supplier RFP management assignments, and owns PSE’s well known
always offer. – New York Post acquiring pricing model used by many clients. PSE Consulting is a lead-
• Cash remains essential for the 5 to 6 million U.S. ing global provider of payment advisory services to players across the
unbanked households, or those relying solely on payments landscape. PSE’s expertise has enabled it to deliver actionable
cash to manage daily expenses. – FDIC market insights and operational optimization to senior payments lead-
ers for over 30 years. Contact Michelle via LinkedIn at linkedin.com/in/
• During disasters, cash access ensures immedi- meaprice. To learn more about PSE, visit https://pseconsulting.com/
ate purchase capability even when electronic
systems are inoperative. – PivotalSecPlus

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