Americans’ payment habits continue to shift and evolve in big and small ways. While traditional payment methods like debit and credit cards continue to dominate, younger generations are embracing new digital and mobile payment solutions. According to the latest Logica Future of Money Study, mobile devices and digital payment options are becoming increasingly integral to how people make in-person transactions and becoming a dominant force in the payments sector.
Mobile Payments on the Rise
According to The Payments Association, mobile contactless payments are reshaping how consumers make transactions. Our study reveals that mobile devices are becoming essential tools for making in-person payments, with more than half (52%) of Americans now using their phones for such transactions. This trend is particularly prevalent among younger generations, with 69% of Gen Z and 65% of Millennials reporting regular use of their mobile phones to pay at the point of sale. Stored debit and credit cards dominate when using a mobile device to make payments through a digital wallet. Debit cards take the lead, with 63% of Americans preferring to use them, followed by credit cards at 55%.
The Enduring Popularity of Credit Cards
While mobile payments with digital wallets are gaining ground, credit cards remain a preferred payment method for many Americans. In fact, eMarketer shares that “credit cards will remain the most popular retail payment method in the United States through next year, with total credit card transaction value reaching $3.843 trillion in 2025.” Logica Future of Money Study shows that 80% of Americans own at least one credit card, and the average consumer holds nearly three (2.8) cards. Credit cards are particularly favored by older generations, primarily due to the rewards they offer. For younger Americans, however, credit cards are seen primarily as tools for building credit.
Peer-to-Peer and Buy Now, Pay Later (BNPL) Adoption
Another area of the payments industry that is growing in adoption is Peer-to-Peer (P2P) and Buy Now, Pay Later (BNPL). The adoption of P2P payment platforms like PayPal, Venmo, Zelle and Cash App continues to grow. In fact, Zelle recently reported that during 2024 American consumers and small businesses transmitted more than $1 trillion using their platform—the most money ever sent on a P2P service in a single year. These P2P services are particularly popular among younger generations, who appreciate the ease of sending and receiving money between friends and family.
And BNPL services continue to rise in popularity. Payments Dive shares that usage has surged, particularly among younger consumers, and that the market shows the growing integration of BNPL into shopping habits. Our study insights reveal that more than a quarter (26%) of Americans have used BNPL for purchases, with Millennials (28%) and Gen X (31%) leading the way. The ability to break down payments into smaller, interest-free installments appeals to consumers looking for flexibility, particularly in a time of economic uncertainty.
The Future of Payments
As consumer preferences for different ways to pay continue to evolve, businesses must stay agile and adapt to these emerging trends. Offering a variety of payment options and understanding the changing dynamics of mobile, digital and traditional payment methods will be essential for staying competitive in the years to come. Reach out to us to learn more!
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