The landscape of U.S. noncash payments has witnessed a significant shift, with credit card payments outpacing debit card growth for the first time in over two decades. Data from the latest Federal Reserve Payments Study (FRPS), which includes figures from 2024, reveals a notable acceleration in credit card usage, marking a reversal of a long-standing trend observed since the turn of the millennium.
Credit Cards Drive Payment Volume Growth
Cards continue to dominate the sheer number of noncash payments in the United States, accounting for 79% of the total volume in 2024, an increase from 77% recorded in 2021. This substantial volume encompasses 120.6 billion debit card payments and 67.1 billion credit card payments. Despite their prevalence in transaction count, cards collectively represent a comparatively smaller 8% of the total noncash payment value.
The FRPS, a triennial study that quantifies aggregate payment volumes from U.S. domiciled accounts, both consumer and non-consumer, specifically highlighted the pivotal change. “Credit cards grew the most by number among all payment types, marking the first measured three-year period since 2000 that credit card payments grew more than debit card payments,” the report stated, underscoring a significant behavioral evolution in payment preferences.
ACH Maintains Value Dominance
While cards lead in transaction volume, ACH payments firmly hold the top position for noncash payment value. In 2024, ACH payments comprised 74% of the total noncash payment value, an increase from 72% in 2021, reaching a staggering $104.06 trillion. This category includes both ACH debit and credit transfers, with the latter accounting for almost two-thirds of the total ACH payment value. The report noted that “ACH payments continued to dominate noncash payments by value, although growth slowed relative to recent periods.”
Traditional Methods Decline, Average Values Rise
The study also documented a continued decline in traditional payment methods. Check payments decreased by 1.8 billion to 9.2 billion between 2021 and 2024, with their aggregate value dropping by $1.92 trillion to $24.45 trillion. Similarly, ATM cash withdrawals saw a reduction in number, falling from 3.8 billion in 2021 to 3.4 billion in 2024.
Interestingly, despite the reduced volume for both checks and ATM withdrawals, their average values increased. The average value of check payments rose from $2,386 in 2021 to $2,653 in 2024, while the average value of ATM cash withdrawals inched up from $202 in 2021 to $210 in 2024. This suggests that while fewer traditional transactions are occurring, those that do are for higher amounts.
Overall Growth and Digital Shift
Overall, the total number of noncash payments expanded by 31.9 billion to reach 236.6 billion in 2024, while their aggregate value increased by $10.37 trillion to reach $140.01 trillion. This comprehensive growth underscores a broader, ongoing trend towards digital transactions across the U.S. economy.
These findings are further supported by a separate PYMNTS Intelligence report, “Five Years of Change: How Payouts Shifted From Slow and Paper-Based to Instant and Digital,” which found that both consumers and businesses in the U.S. payout market have increasingly moved away from checks and slower bank transfers towards faster, digital payment options. The recent FRPS data solidifies the narrative of a dynamic payments ecosystem, with credit cards now playing an increasingly prominent role in driving transaction volume growth.
