American payment habits are shifting significantly as electronic methods continue to rise, affirming the move toward a digital-first payment environment. The Federal Reserve Payments Study (FRPS) of 2025 provides insights into such evolving trends, reflecting data from 2024. Beyond mere statistics, this shift highlights changing consumer preferences and behavior in financial transactions, emphasizing a preference for card-based and ACH methods over traditional options like checks and cash withdrawals.
Recent years had seen a steady preference for debit cards, but the latest findings mark a shift. Credit cards accounted for the largest increase in noncash payment volume among all payment types, a phenomenon last observed at the turn of the 21st century. This alteration demonstrates a notable change as consumers increasingly opt for credit cards over other noncash payment options. Previously, debit cards dominated this aspect, showcasing the evolving dynamic of payment mechanisms.
How Did Card Payments Perform in 2024?
In 2024, cards were responsible for 79% of all noncash payment volumes, up from 77% three years prior. This included 120.6 billion debit card and 67.1 billion credit card transactions. Despite this volume, cards represented only 8% of the total value of noncash payments. The report emphasizes,
“Credit cards grew the most by number among all payment types.”
What About ACH Payments?
ACH payments maintained their dominance in terms of value, accounting for 74% of the total noncash payment value. This is an increase from 72% in 2021. Both ACH debit and credit transfers contributed significantly, amounting to a total of $104.06 trillion in 2024. Despite a slight deceleration in growth, ACH continues to be the preferred method for high-value transactions.
“ACH payments continued to dominate noncash payments by value,”
the report clarifies.
Simultaneously, traditional payment methods such as checks saw a decline. The number of check payments fell by 1.8 billion, reaching 9.2 billion in 2024. Their total value also decreased by $1.92 trillion, dropping to $24.45 trillion. This reduction in check usage reflects a broader trend towards more efficient digital payment options. ATM withdrawals mirrored this decline, with a fall from 3.8 billion in 2021 to 3.4 billion in 2024, despite an average withdrawal value increase.
Other studies, such as PYMNTS Intelligence, have corroborated these findings, noting a shift towards instant digital payments over slower traditional methods. The US payout market is increasingly adopting faster digital solutions, mirroring trends reported in the FRPS.
The overall landscape of noncash payments continued to expand in both volume and value between 2021 and 2024. This expansion aligns with the growing consumer demand for more convenient and speedy payment solutions, as well as the broader evolution of the financial industry.
An ongoing transition within payment systems towards digital solutions reflects broader consumer behavior trends. As these changes solidify, organizations and consumers can anticipate a landscape emphasizing digital and card-based transactions. This ongoing shift offers insights into the future trajectory of payment methods in the US, suggesting that the emphasis on digital solutions will likely continue to deepen.
