The State of Payment Methods 2025

Cards and Digital Alternatives Are Stealing Share at Checkout

Report by Grace Broadbent, and David Morris  | Feb 27, 2025
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Table of Contents
Executive Summary
Consumer payment habits are quietly shifting thanks to new technologies and shaky consumer financial health
Consumers’ love of credit cards may hit a limit
Debit cards are a mainstay in consumers’ financial lives
Retail and gift cards are propping up prepaid spend
Cash isn’t dying, but checks are
BNPL growth is slowing as the industry matures
Despite merchant interest, A2A payment adoption faces an uphill battle
Crypto payments haven’t taken off, but that could change under the Trump administration
Sources
Media Gallery
About This Report
Consumers are slowly making changes to how they pay at checkout. We look at the top seven payment methods and delve into what’s pushing forward and detracting from their growth.
Topics
Financial Services
Payments
United States
Table of Contents
Executive Summary
Consumer payment habits are quietly shifting thanks to new technologies and shaky consumer financial health
Consumers’ love of credit cards may hit a limit
Debit cards are a mainstay in consumers’ financial lives
Retail and gift cards are propping up prepaid spend
Cash isn’t dying, but checks are
BNPL growth is slowing as the industry matures
Despite merchant interest, A2A payment adoption faces an uphill battle
Crypto payments haven’t taken off, but that could change under the Trump administration
Sources
Media Gallery

US consumers’ payment preferences are subtly shifting. Many consumers are leaning more on credit cards, though others are turning to credit alternatives like buy now, pay later (BNPL) in the face of financial health concerns. And newer options like crypto and account-to-account (A2A) payments could become increasingly viable. Here’s what influences how consumers pay at checkout and how payment providers and retailers can respond to maximize conversion.

Key Question: How are consumers paying for retail purchases in 2025?

Cards Continue to Take Transaction Share From Cash and Check (trillions in US transaction value for select payment types, 2023-2026)
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Key Stat: Total payment card transaction value will grow 4.3% in 2025, per our forecast, as debit and credit cards continue to steal share from cash and checks.

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Table of Contents

  1. Executive Summary
  2. Consumer payment habits are quietly shifting thanks to new technologies and shaky consumer financial health
  3. Consumers’ love of credit cards may hit a limit
  4. Debit cards are a mainstay in consumers’ financial lives
  1. Retail and gift cards are propping up prepaid spend
  2. Cash isn’t dying, but checks are
  3. BNPL growth is slowing as the industry matures
  4. Despite merchant interest, A2A payment adoption faces an uphill battle
  1. Crypto payments haven’t taken off, but that could change under the Trump administration
  2. Sources
  3. Media Gallery

Charts in This Report

Cards Continue to Take Transaction Share From Cash and Check (trillions in US transaction value for select payment types, 2023-2026)Credit Card Transaction Value Will Grow by 4.9% in 2025 (trillions in US credit card transaction value, % change, and % of total payment transaction value, 2019-2026)
Debit Card Transaction Value Will Grow by 3.9% in 2025 (trillions in US debit card transaction value, % change, and % of total retail & food services transaction value, 2019-2026)Prepaid Card Transaction Value Will Grow by 1.2% in 2025 (billions in US prepaid card transaction value, % change, and % of total retail & food services transaction value, 2019-2026)
Cash/Check Transaction Value Will Decline by 0.9% in 2025 (trillions in US cash/check transaction value, % change, and % of total retail & food services transaction value, 2019-2026)Update title: 1 in 10 US Gen Zers No Longer Use Cash (% of US adults, by generation, Nov 2023)
Buy Now, Pay Later Transaction Value Will Grow by 15.0% in 2025 (billions in US buy now, pay later (BNPL) payment value, % change, and % of total retail sales, 2024-2028)6 in 10 Consumers Say Cash Back and Discounts Would Increase Their Interest in Pay by Bank (% of US adults who would be more interested in pay by bank based on incentives, by incentive, July 2024)
Cryptocurrency Payment Users Will Jump by 82% From 2024 to 2026 (millions of US cryptocurrency payment users and % change, 2022-2026)

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authors

Grace Broadbent, and David Morris

Contributors

Suzy Davidkhanian
VP, Content
Vladimir de Leon
Chart Editor
Vivian Dong
Forecasting Analyst
Chris Keating
Director, Research
Tiffani Montez
Julia Woolever
Ali Young
Senior Copy Editor and Manager of Content Operations