The U.S. remains a cash-centric society even as digital payments grow. Studies show roughly 83% of adults used cash at least once in the last month, and cash still accounts for about 14-18% of all transactions nationwide. Low‑income and older Americans in particular rely heavily on cash, as 22% of payments by people over age 55 and 28% by households earning under $25,000 were made in cash.

Fintech firms are now building innovative services that turn physical cash into digital money. For instance, Green Dot’s recent partnership with Stripe lets users deposit cash at grocery and pharmacy registers in exchange for instant online account credits. These solutions ensure that cash‑preferring consumers and businesses can participate in the digital economy.

Merging cash and digital platforms is essential for financial inclusion and commerce. It lets underbanked households access online banking without a traditional bank account, and it opens new markets for merchants and fintech providers. Mobile wallets, prepaid cards, and embedded-banking APIs: fintechs are effectively “digitizing” cash by leveraging retail networks. This blog examines the scale of America’s cash economy, the fintech tools linking cash and digital, and why closing this gap benefits consumers, small businesses, and the broader economy.

The Enduring Cash Economy

Even after decades of credit cards, debit cards, and mobile payments, cash remains widely used. The Federal Reserve’s consumer payment surveys find that nearly 9 in 10 consumers hold or use cash, and cash accounts for roughly 1 in 5 transactions. “Cash” means anything from paper bills and coins to money orders and prepaid cash cards. Many Americans – not just the unbanked – prefer cash for everyday spending because it is familiar, private, and widely accepted. For example, 83% of U.S. adults used cash in the past 30 days, and 93% say they have no plans to stop using cash.

The cash economy is especially vital for specific groups. Millions of households lack a convenient bank account or digital payment method. About 5.6 million U.S. households (4.2%) were unbanked entirely in 2023 (no checking or savings account), and another 19.0 million (14.2%) were underbanked (they have an account but also rely on alternative financial services).

Unbanked and underbanked consumers typically earn less income or live in rural or minority communities, and they use cash and cash‑like services out of necessity. In fact, unbanked households are far more likely to pay bills or receive wages via paper channels: over 90% of those who used money orders did so to pay bills, and 75% of those who used check‑cashing did so to access pay or government benefits. This shows that for large segments of the population, cash isn’t just a preference – it’s an essential part of managing everyday finances.

Merchants and small businesses also drive cash usage. Many mom-and-pop shops, food trucks, and services still transact predominantly in cash. A company that sees mostly cash sales needs a way to deposit that cash or pay vendors digitally. Until recently, such merchants had to go to a bank branch or use expensive cash pickup services. Now fintech solutions are emerging that turn any store into a “de facto ATM” for cash deposits or digital credits.

These trends have not gone unnoticed by regulators and industry. The Federal Reserve and Treasury emphasize that Americans need accessible transaction accounts and cash services to avoid exclusion.

Fintech Innovations: Connecting Cash and Digital

Fintech firms have devised several approaches to bridge cash with digital money. Key strategies include leveraging retail networks, embedding banking services in platforms, and creating cash‑reload channels for online accounts. Some of the leading solutions are:

• Retail Cash Deposit Networks:

Fintech platforms partner with retail stores (grocery, pharmacy, convenience) to accept cash deposits on behalf of digital accounts. Green Dot’s Arc platform powers a nationwide “Cash Access Network” of tens of thousands of stores. In a recent rollout, Stripe Treasury users can visit any of over 90,000 Green Dot retail locations (including Walmart, Walgreens, CVS, etc.) to deposit cash directly into their Stripe online account.

Likewise, small businesses can use Clip Money’s service: by partnering with Green Dot and major retailers, Clip Money lets business owners drop off cash at 4,000+ store counters to be deposited into a linked bank account. These networks work like distributed ATMs: the store collects the money, and the fintech (via its partner bank) credits the user’s digital balance instantly. Customers avoid bank branch visits or carrying large bills, while businesses (and gig workers) gain a safe, after-hours way to bank their cash revenues.

• Cash‐to‐Wallet Reloads:

Payment services offer programs that allow consumers to convert cash into digital wallet balances or gift cards. A prominent example is Amazon Cash (launched in 2017) – users obtain a QR code (from the Amazon app or a printout) and go to a participating retailer (CVS, Speedway, Kum & Go, etc.). The cashier scans the code, and the customer hands over the desired amount in cash (typically $15–$500). Amazon then adds that amount to the customer’s Amazon balance instantly.

This lets cash-only shoppers pay on Amazon.com without a bank account or card. Similarly, PayPal and other e-commerce platforms partner with networks of retail cashiers and prepaid reload cards (e.g., Green Dot’s MyCash) to let users top up their online wallets. These cash-loading options “turn paper money into digital currency” with minimal friction for the user.

• Embedded Finance APIs:

Fintechs are enabling “embedded finance” – integrating banking features into apps and platforms – so that non-bank companies can offer cash services without building a bank themselves.

Green Dot’s Arc is one such embedded finance platform: it provides a complete banking backend (FDIC‑insured accounts, transfers, processing) through a single API. By integrating Arc into Stripe Treasury, Stripe can treat cash deposits the same as other payment rails.

A Stripe customer (even a simple gig‐worker or marketplace seller) can receive cash via the Green Dot network and see it flow into their Stripe balance, all orchestrated behind the scenes by Green Dot’s embedded platform. Embedded finance abstracts away the complexity: merchants and app developers specify how much cash to add or withdraw, and the platform handles routing, compliance, and settlement.

• Prepaid and Cash‐Reload Cards

Prepaid debit cards and reloadable gift cards also bridge the gap. Customers can buy a prepaid card (or use a card they already have) and add cash value at retail checkout. Services like NetSpend or InComm’s products allow users to swipe a prepaid card and hand over cash to reload it. The value is available immediately for online purchases or ATM withdrawals. Visa’s ReadyLink network and Blackhawk’s Reloadit provide storefronts for loading cards with cash.

For many underbanked consumers, a prepaid card loaded with cash offers a quasi-bank account: they can pay bills online, get direct deposit, or transfer money, all anchored by that cash balance. Many card providers find that making reloads secure, convenient, and cost-effective is key to helping underserved users shift into digital payments.

• Kiosks and Partners:

Other models include money-order providers and automated kiosks. Coinstar machines let shoppers insert cash and convert it to an e-gift card or PayPal transfer (for a fee). Bitcoin or crypto ATMs turn cash into digital coins. Even local shops are becoming payment agents: Western Union or 7‑Eleven stores let customers deposit bills that can fund online accounts elsewhere.

And specialized apps like Sonect (in Europe) connect users with local businesses that will accept cash deposits on their behalf. In all cases, the principle is the same: a physical cash point is linked to a digital ledger so that the cash effectively “jumps onto the grid” when deposited.

These fintech solutions work together to close the cash loop. Retailers and payment processors jointly become surrogates for banks, addressing the needs of cash-reliant customers. Embedded finance platforms ensure this all happens within the regulated banking system, so funds remain insured and compliant even if the user never visits an actual bank.

Why It Matters: Inclusion and Opportunity

Bridging cash to digital payments has significant benefits for inclusion, businesses, and fintech innovation:

1. Serving Cash‑Dependent Consumers

About 5.6 million U.S. households (4.2%) are unbanked, and another 19.0 million (14.2%) are underbanked. For these Americans, convenient access to cash services is literally life-changing. By converting cash to digital balances, fintechs give unbanked people access to the broader financial system (online bill pay, e-commerce, P2P transfers, etc.) without forcing them to open a traditional account.

This helps low‑income, rural, and minority communities – Hispanic households are far more likely to be unbanked (10%) than White households (3%). Enabling cash deposits means these communities can participate in online banking, savings, and credit opportunities they were previously shut out of.

2. Empowering Small Businesses

Many small merchants operate primarily in cash and lack easy access to banking services. Fintech cash deposit networks turn local grocery stores, pharmacies, or convenience stores into mini-banking outlets. A café owner can drop off $500 of cash receipts at a neighborhood store on Sunday night and have that money in her digital payment account the next morning.

This reduces the operational burden of cash (safer transport, fewer armored trucks or cash pickups) and expands where businesses can bank (beyond bank branch hours). Especially in areas where banks are closing branches, the Green Dot network covers 96% of Americans within 3 miles of a cash point. That means even underbanked shops gain affordable banking services simply by partnering with fintech cash networks.

3. Enhancing Financial Inclusion

Globally, over 1.4 billion people remain unbanked. Fintech-led cash solutions contribute to the goals of financial inclusion (a focus of the U.S. Treasury’s strategy and international organizations). They make it easier to achieve key inclusion metrics: safe transaction accounts, digital payments access, and lower reliance on cash.

Fintech innovations such as mobile money and API banking have a proven track record of reducing poverty and boosting GDP in developing markets. In the U.S., enabling cash-to-digital flows helps historically underserved groups (older adults, low-income, immigrants) gain footholds in the mainstream financial system.

4. Opportunities for Merchants and Fintechs

Accepting cash and converting it to digital expands the potential customer base. Retailers that enable cash deposits can build loyalty among cash-paying customers. For fintech companies, these services open new revenue streams.

Green Dot, for example, and its partners may charge small fees or earn interchange on cash reloads. Prepaid card firms can increase card usage and demand for reload services. Overall, enabling cash broadens the market for digital payments.

5. Policy and Trust

From a regulatory perspective, cash‑to‑digital services can reduce the underground economy and improve tax compliance (digital trails record transactions that were previously anonymous). They also address social equity goals: by making banking more inclusive, fintechs can bolster community development and economic mobility. The U.S. government has explicitly targeted expanding access to basic transaction accounts as a policy objective.

Fintech solutions align with this by effectively providing “banking on demand” even where banks have retreated. Plus, by partnering with insured institutions (as embedded platforms do), these services keep consumer funds protected by regulation and deposit insurance.

Conclusion

Cash is not disappearing anytime soon, but fintech’s job is to meet people where they are. Through networks of retail partners, mobile APIs, and innovative prepaid products, today’s fintech companies are blurring the lines between physical currency and digital money. These bridges bring tangible benefits: unbanked individuals gain access to online financial tools; small businesses lower their banking barriers; merchants capture more sales; and fintech providers expand their markets.

Moving forward, we can expect continued innovation in this space. Regulators and policymakers will likely encourage more such solutions, given their alignment with inclusion goals. In the meantime, consumers and businesses alike stand to gain from a future where the physical and digital realms of money are seamlessly connected – ensuring nobody is left behind just because they carry cash.

Frequently Asked Questions