How many purchases are made with credit cards

The smartphone has revolutionized the convenience and security of digital payments, as have other technological changes in point-of-sale units. For merchants and financial institutions, knowing which payment instruments will dominate can prepare them to handle future transactions. Traditional payment options While digital methods, such as digital or mobile wallets, have become more common, the number of credit cards does not seem to be declining significantly. This is in part due to the fact that these wallets use a credit or debit card to facilitate the transactions.

As such, these payment methods are likely to remain common, at least in this capacity. The purely digital options, known as cryptocurrencies , are currently constrained by such factors as lack of governmental supervision or lengthy transaction times , keeping them from becoming more popular.

You need a Single Account for unlimited access. Full access to 1m statistics Incl. Single Account. View for free. Show source. Show detailed source information? Register for free Already a member? Log in. More information. Other statistics on the topic. Financial Services Quarterly number of Visa issued credit cards in U. Financial Services Quarterly number of Mastercard issued credit cards in U. Financial Services Credit card and debit card number in the U.

Digital Shopping Behaviour Global e-commerce payment methods , by share of transaction volume. Raynor de Best. Profit from additional features with an Employee Account.

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Further Content: You might find this interesting as well. Learn more about how Statista can support your business. The Nilson Report. The amount of cash held by consumers varies significantly based on age and income. The amount of cash held by other age groups has fluctuated with no obvious pattern emerging. Cash holdings vary by household income as well, though the difference is not as dramatic and the correlation not as strong.

Transactions are made in-person and often with cash, though credit use is rising. In addition, approximately 56 percent of not-in-person payments are bill payments. When bill payments are excluded and one looks only at non-bills, the percentage of in-person payments increases to 88 percent. The reason for analyzing data that excludes bill payments is these payments tend to be higher in value and people are, generally, less likely to use cash for these payments.

This non-bill statistic provides insight into the share of point of sale payments that, 10 to 15 years ago, likely would have been made in-person with the option for people to use cash. Just as with overall payment shares, use of cash for in-person payments posted a 4 percentage point decline between and Even so, cash is the most used payment instrument for in-person payments at 35 percent Figure Consumers continue to use cash for a wide variety of payments and across merchant types.

Cash use was most popular for gifts and person-to-person P2P transfers. However, there have been shifts in payment usage within this payment type. The Diary represents the first year both debit and credit cards were used for gifts and transfers, indicating the popularity of peer-to-peer apps such as Venmo, Apple Pay, Square cash, etc.

Electronic payments were used for the majority of housing related purchases, while debit was the most used payment instrument for general merchandise. While participants used cash at a range of merchant types, the total number of transactions varied dramatically by merchant category. The largest share of payments take place for food and personal care supplies, where consumers make an average of 16 payments each month. Within this merchant category, participants used cash and debit cards most often and to an equal degree, 34 percent each, accounting for approximately five payments per person per month.

Because the 16 purchases consumers made in a month for food and personal care supplies is more than double the purchases they made for general merchandise, cash use on food and personal care expenditures is a key component of overall cash usage Figure Even as new payment methods continue to emerge, consumers tend to use the established payment methods of cash, debit cards, and credit cards for daily spending.

Although the Diary study marks the first time cash was not the most used payment instrument, it continues to be used widely across different demographic groups, especially for small-value purchases. For those preferring to use debit and credit cards, cash remains the second most frequently used payment instrument accounting for 20 percent of their payments. Cash use continues to be popular among younger and older age groups, who use cash for approximately one third of payments. Cash is also the most used payment instrument for transactions that take place in-person, which is where almost three-quarters of all payments take place and where nearly 90 percent of non-bill payments are conducted.

The Diary of Consumer Payment Choice highlights the important role cash plays in the present economy, while also illustrating the significant role of competing payment methods and emerging technologies.