In an era of mobile wallets and instant payments, cash is proving far more resilient than many expected. More than half of U.S. consumers surveyed by Siena University say their use of cash has remained the same—or even increased—over the past five years.
The vast majority of respondents said they had paid with cash in the last 30 days. About 17% described themselves as cashless—people who rarely or never use cash. Nevertheless, 60% of these cashless consumers had still used cash in the past month.
A Sense of Safety
Why are consumers holding onto cash? The most prominent concern is safety. Many consumers say paying with cash better protects their privacy than digital or card payments, while others cite the increased risk of identity theft associated with cards and payment apps.
These attitudes extend to the broader economy. Some 94% of respondents want the U.S. to keep cash available in case national security threats disrupt the electronic payments system, and slightly fewer (85%) say cash is a more resilient option in the face of natural disasters, computer glitches, and grid outages.
Laws Supporting Cash
It’s not surprising that most U.S. consumers want to prevent the country from going cashless. A majority say that all businesses should be required to accept cash, while only about a quarter believe businesses should be free to decide whether to accept cash or not.
These views suggest support for the Payment Choice Act now pending in Congress. The legislation would require most businesses to accept cash for in-person purchases of up to $500—a step that many states and cities have already taken. When Siena survey respondents were told about the Payment Choice Act, 85% said they support requiring most in-person retailers to accept cash.
While consumers want to preserve the option to pay with cash, some businesses have chafed at the requirements adopted by several states.
“Every business owner makes choices when it comes to how best to serve their customers and that includes what payment types to accept, including cash,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “Advocating for laws requiring business owners to accept cash is no different than requiring all restaurants to serve both Coke and Pepsi products.”
The Ohio legislature is currently considering a compromise version aimed at minimizing that burden on businesses. Known as the Currency Access to Spend Here (CASH) Act, the proposal would require each store to offer at least one cash-accepting register or payment option. Violations would not carry fines or criminal penalties, but customers would have the right to sue retailers that fail to comply.
