U.S. credit cards - statistics & facts
Credit cards still play a sizable role in U.S. digital payments, despite the growth of alternative options like buy now, pay later (BNPL). This may be due to loyalty incentives, as U.S. consumers across different age groups were eager for discounts or free shipping as a reward. With U.S. inflation mounting, however, so grew concerns of growing credit card debt. Will economic uncertainty change U.S. payment behavior?
Credit cards face more alternative payments. The move away from cards in the U.S. seems slower than elsewhere in the world, as its consumers keep looking for rewards while paying.
Credit card usage today and in the future
Credit cards are expected to develop in two directions simultaneously. In in-store retail purchases, credit cards are forecast to be used by three out of 10 U.S. consumers by 2027. This is a decline of about nine percentage points in four years, but credit cards remain the most dominant payment method in offline shops. Credit card use in e-commerce, however, is expected to lose its leading position, as digital wallets would reach a market share of more than 50 percent by 2027. It should be noted that both figures focus purely on consumer to business transactions and seemingly do not include co-branded credit cards - instead focusing only on general-purpose credit cards.Is cost of living leading to a decline in U.S. credit cards?
The cost of living changed payment behavior for online shopping in the United States, with four out of 10 respondents using credit cards more often than before. This matches a general trend of increasing digital payments - with debit cards growing even more than credit cards. BNPL did not grow as fast. U.S. consumer demand for interest-free BNPL options during holiday shopping, for example, was higher than for credit cards but not by much. Indeed, the increase in inflation is reflected strongly in the United States' credit card balances: The total credit card debt reached all-time highs several times in a row. So much so that credit card bills became the leading source of debt for U.S. consumers.A new take on credit cards
Credit cards are mostly associated with general-purpose brands like Visa and Mastercard - with the market share of the former outweighing its competitors for numerous years. Co-branded credit cards, effectively a partnership between a brand and a card scheme or issuer, became increasingly popular in 2024, though. Examples of these are found especially in travel, with airliners and hotels forming partnerships with card issuers. A driver behind this trend is that co-branded cards fuel Gen Z's desire for value and quality when it comes to brand loyalty.Credit cards face more alternative payments. The move away from cards in the U.S. seems slower than elsewhere in the world, as its consumers keep looking for rewards while paying.
