Federal Reserve data shows that the volume of currency in circulation has only increased since 2002. Every denomination - including less common banknotes such as the $2 bill - has increased in circulation, from the humble dollar to the Benjamins. As of December 31, there were 54.1 billion notes in circulation compared to 22.9 billion notes in 2002.

Economics experts say that despite increasing reliance on cards, cash remains resilient and an important payment method for many consumers.

"Cash still remains really important to certain segments of consumers," Christopher Bechler, assistant professor of marketing at the University of Notre Dame Mendoza College of Business, told Business Insider, pointing to underbanked customers as one segment of the population who rely on cash.

Underbanked consumers often refer to people with bank accounts who rely on alternative financial services such as non-bank money orders or payday loans.

Bechler said that cash also tends to be a preferred payment method for smaller purchases under $10 or "hard-to-justify" items, referring to "guilty" purchases that aren't necessary, like an overpriced water bottle at an airport or cigarettes.

In his 2023 study published in the Journal of the Association for Consumer Research, Bechler found that consumers "pay with card to remember and cash to forget" because the latter method won't leave a paper trail of their purchases.

"This pattern is strongest for consumers who diligently track their card spending and occurs because consumers don't want to see records of their unjustifiable spending," Bechler told BI.

To read the complete article, see:
Cash is no longer king. So why are we still printing so much?(https://www.businessinsider.com/why-fed-us-print-more-money-cash-preferred-payment-method-2024-2)