Top US Payment Methods (2023–2027)
Worldwide, the most popular online payment methods are digital wallets and credit cards, constituting nearly three-quarters of total online payment transaction value. What about in the United States, the country with the second-highest amount of ecommerce sales and whose ecommerce market share of retail sales is projected to hit 16.6% in 2024?
Whether you’re running an online or brick-and-mortar store, knowing what the most popular payment methods in the US are facilitates sales. Here’s an overview of the top digital and point-of-sale payment methods in the US.
Top US payment methods: ecommerce
|
Ecommerce payment method |
2023 |
2027 forecast |
|---|---|---|
|
Digital wallets |
37% |
52% |
|
Credit cards |
32% |
22% |
|
Debit cards |
19% |
12% |
|
A2A |
5% |
7% |
|
BNPL |
5% |
6% |
|
Prepaid cards |
1% |
1% |
|
Cash on delivery |
1% |
0% |
According to a recent report, digital wallets emerged as the most popular online payment method in the US in 2023, constituting 37% of the total online transaction value. Examples of digital wallets include Venmo, Google Pay, and Apple Pay, with the user bases of Venmo and Apple Pay projected to increase in 2024. The share of digital wallet payments is expected to surge to 52% in 2027, indicating a significant shift in consumer behavior toward this mode of payment.
Credit cards and debit cards follow as the second- and third-most-popular digital payment methods in the US, comprising 32% and 19% of the transaction value, respectively. However, their shares are forecast to decrease to 22% and 12% by 2027.
Together, payments via digital wallets, credit cards, and debit cards make up 88% of online transactions, highlighting their dominance in the market.
Account-to-account (A2A) transfers and buy now, pay later (BNPL) options each hold a 5% market share, while prepaid cards and cash on delivery represent just 1% each of the payment methods in the US.
Top US payment methods: point of sale
|
Point of sale payment method |
2023 |
2027 forecast |
|---|---|---|
|
Credit cards |
41% |
34% |
|
Debit cards |
28% |
23% |
|
Digital wallets |
15% |
31% |
|
Cash |
12% |
8% |
|
Prepaid cards |
3% |
3% |
|
POS financing |
1% |
1% |
The list of the top point-of-sale (POS) payment methods in the US looks vastly different from that of online modes of payment. While the three-most-used methods are the same, their rankings differ.
The data on payment methods in the US shows that credit cards are consumers’ payment of choice when it comes to POS transactions, accounting for 41% of the total value. That said, their popularity is expected to wane over the next few years, with a projected decline to 34% by 2027. Debit cards follow closely behind, comprising 28% of POS transactions, but this share is also anticipated to diminish to 23% by 2027.
In contrast, digital wallets, currently representing 15% of POS payment transactions, are poised for remarkable growth, with a projected increase to 31% by 2027.
Completing the list of the top POS payment methods in the US are cash, prepaid cards, and POS financing. Cash transactions comprise 12% of the total value, while prepaid cards and POS financing contribute 3% and 1%, respectively.