January 18, 2017
Credit cards continue dominance over debit cards and cash in U.S.
Carpinteria, CA -- Credit cards continued to gain share against all other forms of payment in the U.S. in 2015. The Nilson Report, the leading 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 $9.550 trillion in 2015, up 3.4 per cent over 2014. The four card-based methods of payment of credit, debit, prepaid, and electronic benefits transfer generated $5.665 trillion in purchases or 59.32 per cent of all consumer payment systems volume.
Credit cards accounted for $2.932 billion, 30.70 per cent of volume. Debit cards accounted for $2.420, 25.34 per cent of volume. Card-based volume is expected to increase every year through 2020, when these methods collectively are projected to account for 69.69 per cent.
The paper-based methods of cash, checks, money orders, travelers cheques, and official checks generated $2.496 trillion or 26.14 per cent of all consumer payment systems volume. Paper-based market volume share fell from 28.20 per cent in 2014, and is projected to be 16.85 per cent by 2020.
The two electronic-based systems are remote and preauthorized payments. In 2015, these generated $1.389 trillion or 14.54 per cent of all consumer payment systems volume.