News

Cash payments decline in US as credit makes continued gains

January 20, 2017

Credit cards continued to gain share against all other forms of payment in the U.S. in 2015, according to a press release from The Nilson Report. In its recent study, the card and mobile payment trade publication measured 11 methods of consumer payments in the U.S.

"Our model measures the payment instruments consumers use to make personal consumption expenditures calculated by the U.S. Bureau of Economic Analysis," said David Robertson, publisher of The Nilson Report.

Purchases of goods and services totaled $9.55 trillion in 2015, up 3.4 percent over 2014.

The four card-based methods of payment of credit, debit, prepaid and electronic benefits transfer generated $5.66 trillion in purchases, or 59 percent of all consumer payment systems volume.

Credit cards accounted for $2.93 billion, 31 percent of volume. Debit cards accounted for $2.42 billion, 25 percent of volume.

Card-based volume is expected to increase every year through 2020, when these methods collectively are projected to account for approximately 70 percent of payment volume.

Paper-based payment instruments — cash, checks, money orders, traveler's checks and official checks — generated $2.49 trillion or 26 percent of all consumer payment systems volume. Paper-based market volume share fell from 28 percent in 2014, and is projected to decline further, to approximately 17 percent by 2020.

The two electronic-based systems are remote and preauthorized payments. In 2015, these generated $1.39 trillion or approximately 14 percent of all consumer payment systems volume.