The Most Popular Payment Methods in the U.S. [Statistics & Data] (2024)

The way we pay has continued to change throughout the 21st century. With the introduction of online payments and digital wallets, the nature of financial transactions has rapidly shifted. In 2024, it’s almost unheard of for businesses to accept cash-only payments, with credit cards, debit cards, and digital payment solutions now the norm.

In this article, we will dig into the different types of payment methods, as well as the growth of digital wallets. We will also assess if and how the way we pay for items impacts how much we spend.

According to the 2024 Diary of Consumer Payment Choice by the Federal Reserve Bank of Atlanta, U.S. consumers made most of their payments with debit cards, credit cards, and cash. Although cash still comes out as one of the top payment methods, the report also notes that more than half of payments (62%) were made with payment cards, such as debit, credit, and prepaid.

The full figures showed:

• Cash – 16% (of payments)
• Credit – 32%
• Debit – 30%
• Automated Clearing House (ACH) – 13%
• Check – 3%
• Mobile Payment Apps – Less than 1%
• Other – 6%

Of those choosing to stick with cash as a preferred payment option, there was a clear gradient in accordance with total household income. Those bringing in less than $25,000 made 32% of all purchases with cash, while those making more than $150,000 used it for just 10% of all payments. The full figures show:

• Less than $25,000 – 32% (of payments made with cash)
• $25,000 to $49,999 – 25%
• $50,000 to $74,999 – 15%
• $75,000 to $99,999 – 15%
• $100,000 to $149,999