Card Payments Lead as Cash Use Declines

Credit Cards Take the Lead

Consumers are moving away from cash and checks, leaning heavily into card-based payments. According to the 2024 Survey and Diary of Consumer Payment Choice by the Federal Reserve Bank of Atlanta, credit cards are now the most-used payment method. In October 2024, 35% of all transactions were made with credit cards, while debit cards followed closely at 30%. Cash made up 14%, and bank account methods accounted for 13%.

Decline in Cash and Checks

The use of cash continues to shrink. Only 83% of consumers reported using cash, down from 87% in 2023. Check usage also dropped to 35% from 40% the previous year. Prepaid cards and checks accounted for the smallest shares of usage at 2% and 3%, respectively. Despite this, cash still holds its place as the third most common payment method for the fifth consecutive year.

BNPL Awareness Outpaces Usage

Buy Now, Pay Later (BNPL) services are widely recognized but still underused. While over 76% of respondents had heard of BNPL, and 50% had been offered it in the previous 30 days, only 9.7% used the option. However, providers are seeing growth. Klarna reported a 27% increase in merchant partners and an 18% rise in users by March 2025.

Fraud Trends Show Mixed Progress

The report showed a decline in consumer-reported card fraud. Credit card fraud fell to 10%, and debit card fraud dropped to 8%. Yet, financial institutions still rank debit cards as the top target for fraud attempts, followed by checks (62%), non-bank payment apps (36%), ACH (31%), and credit cards (24%).

Rising Threat of Payment Fraud

Long-term projections suggest increasing fraud risks. ACI Worldwide estimates that U.S. authorized push payment fraud will reach $3.08 billion by 2028. The Nilson Report projects global card fraud losses to surpass $400 billion over the next decade. These numbers highlight the importance of advanced fraud prevention for payment providers.

Payment Solutions with Kubera PaymentsAt Kubera Payments, we help businesses across North America move millions of dollars daily, whether in-store, online, or on mobile.Our team of payment experts is here to guide you through the complexities of payment processing, ensuring your transactions are secure, reliable, and PCI-compliant. We have strong relationships with a wide network of acquirers and can help you find the right front-end and technology solutions to work together.

Get expert advice on optimizing your payments, let’s talk!

Contact our team today at sales@kuberapayments.com or 604-484-9278.

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