Cash out, digital in

US consumers are increasingly using digital payment methods while the use of cash and checks is declining. The value share of cash and checks has slumped from 30% in 2015 to 16% in 2022. Over the same period, the value share of debit and credit cards has remained stable at 35% but with credit cards gaining value share and debit losing value share. The most significant shift has occurred in electronic bank payments, with bank account number payments (meaning “paying by giving your bank account number”) growing their value share from 11% to 23%. Despite the shift away from checks, online banking payments (meaning “a payment made from your bank’s website or app”) value share is stable at about 20%. Surprisingly, mobile payments app such as PayPal, Venmo and Cash App are used by 63% of consumers but have only 0.3% value share.

Source: Federal Reserve Bank of Atlanta (October 2023).