The U.S. Mint has stopped producing pennies, a change that could make the 1-cent coin scarce within 5–10 years. Economists and retailers warn this may complicate cash checkouts and force businesses to rethink pricing for cash versus digital payments as cash usage falls to about 20% in some stores. Officials say ending production could save taxpayers roughly $56 million a year.
U.S. Mint Halts Penny Production — What It Means for Cash, Pricing and Checkouts Over the Next Decade
The U.S. Mint has stopped producing pennies, a change that could make the 1-cent coin scarce within 5–10 years. Economists and retailers warn this may complicate cash checkouts and force businesses to rethink pricing for cash versus digital payments as cash usage falls to about 20% in some stores. Officials say ending production could save taxpayers roughly $56 million a year.
10:59 AM, 11/14/2025Economy
SPRINGFIELD, Mo. — U.S. Mint Stops Penny Production
The U.S. Mint stopped producing pennies on Wednesday, a move that could signal the eventual disappearance of the 1-cent coin from everyday transactions. While pennies remain legal tender and millions are still in circulation, fewer new coins will likely mean they become less common over the next 5 to 10 years.
Why this matters
David Smith, an economics professor at Missouri State University, said there is no immediate shortage of pennies, but their scarcity could grow as they are no longer minted. That gradual thinning, he said, could complicate small cash transactions and increase friction at checkout counters.
'Most people will simply round — for example, round up to $10.10 and pay with a $10 bill and a dime,' Smith said. 'But some customers will expect exact change: they may ask for 3 cents back, or for a nickel instead, which could create repeated, small hassles for clerks and customers alike.'
Retailers and digital payments
Todd Wilson, chief operating officer of Rapid Roberts, noted that consumer behavior has shifted strongly toward electronic payments. Cash now accounts for roughly 20% of transactions at his company, and that share continues to fall as digital payment methods grow.
Wilson added that removing the physical penny from cash transactions could force businesses to rethink pricing strategies. 'A digital payment can differentiate once, but when you remove the physical penny from cash transactions, we need to rethink cash pricing,' he said. 'Even pricing items with prices that end in 0 or 5 can still produce awkward penny-level results once taxes are applied.'
What consumers should expect
Practical responses to fewer pennies could include rounding rules applied at the point of sale, different pricing displays for cash versus digital payments, or continued emphasis on electronic transactions to avoid rounding altogether. Policies and business practices will evolve differently across retailers and jurisdictions, so consumers may notice varied approaches in different stores.
Fiscal impact
U.S. Treasurer Brandon Beach estimates halting penny production will save taxpayers about $56 million per year. For now, existing pennies remain legal tender and will continue to circulate until they naturally wear out or are removed from circulation.
Source: Nexstar Media — KOLR / OzarksFirst
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