The way Americans pay, both online and in-store, is changing faster than ever. With a swipe, tap, or face scan, consumers are saying goodbye to traditional methods like cash and embracing smarter, faster alternatives. If you’re running a business or just curious about where payments are heading, now’s the time to understand how e-commerce payment solutions and point-of-sale systems are evolving.

Let’s unpack the numbers and explore what they really mean for the future of payments in the U.S. from 2023 through 2027.

Ecommerce Payment Methods: Going Digital, Fast

Shopping online is more popular than ever, and so is the demand for seamless e-commerce payment solutions. The way customers pay at checkout is going through a major upgrade, and the data tells an exciting story.

Here’s the 2023 to 2027 forecast for ecommerce payment methods in the U.S.:

• Digital wallets: 37% → 52%
• Credit cards: 32% → 22%
• Debit cards: 19% → 12%
• Account-to-account (A2A): 5% → 7%
• Buy Now, Pay Later (BNPL): 5% → 6%
• Prepaid cards: 1% → 1%
• Cash on delivery: 1% → 0%

Digital Wallets: The Clear Winner

Digital wallets are taking over. In 2023, 37% of U.S. e-commerce payments were made through mobile wallets, including Apple Pay, Google Pay, PayPal, and Venmo. By 2027, that number is expected to soar to 52%. Why? Because they’re quick, secure, and integrated into the devices we use every day.

As consumers prioritize speed and convenience, digital wallets are emerging as the backbone of modern e-commerce payment solutions. Merchants are now integrating wallet-friendly checkouts to reduce cart abandonment and improve customer satisfaction.

Credit & Debit Cards: Still Relevant, But Slipping

In 2023, credit cards accounted for 32% of ecommerce transactions. By 2027, that’s forecasted to drop to 22%. Debit cards follow a similar trend, decreasing from 19% to 12%.

While still important, these traditional payment methods are being edged out by more tech-friendly options. With security breaches and identity theft becoming common concerns, many shoppers feel safer using tokenized digital wallets or BNPL tools.

A2A Transfers & BNPL: Quiet Growth

A2A payments—direct bank-to-bank transactions—are on the rise, growing from 5% to 7%. Thanks to open banking innovations, consumers can authorize payments straight from their bank accounts without a card or third-party app.

Meanwhile, BNPL services like Klarna, Afterpay, and Affirm are also climbing. With 5% in 2023 projected to reach 6% by 2027, the growth reflects Gen Z and millennial preferences for flexible payment options without revolving debt.

Point of Sale Systems: Contactless & Cardless Are the Future

It’s not just online purchases that are transforming; point-of-sale systems in physical stores are undergoing a quiet revolution.

Here’s how in-store payment methods are projected to shift by 2027:

Credit cards: 41% → 34%

Debit cards: 28% → 23%

Digital wallets: 15% → 31%

Cash: 12% → 8%

Prepaid cards: 3% → 3%

POS financing: 1% → 1%

Digital Wallets at the Counter: Up and Coming

Digital wallets will nearly double their share at in-store checkout, jumping from 15% to 31%. As more smartphones support NFC and QR code-based payments, it’s no wonder contactless is gaining ground.

Retailers upgrading their point-of-sale systems to support tap-to-pay or scan-and-go functions are well-positioned to thrive. Shoppers want speed, safety, and ease—digital wallets check all those boxes.

Credit & Debit Cards: Still Dominant, but Slipping

Even as digital payments rise, credit cards (34% in 2027) and debit cards (23%) will still account for the majority of in-store transactions. However, their shares are shrinking as shoppers adopt mobile-first habits and smart watches become payment tools.

Cash, Prepaid Cards & POS Financing: Holding Steady or Fading

Cash continues its steady decline, from 12% to just 8% by 2027. Most people simply don’t want to handle bills anymore. Prepaid cards and POS financing (like installment plans at checkout) will remain stable but limited in usage.

Why These Shifts Matter for Businesses

Whether you’re an online merchant or a brick-and-mortar store, understanding these trends is critical. Consumers are moving toward speed, security, and convenience—and they expect businesses to keep up.

Here’s what this means for you:

1. Invest in E Commerce Payment Solutions That Scale

Digital wallets and BNPL are must-haves now, not just nice-to-haves. Integrating top-tier e-commerce payment solutions like Stripe, Square, or Unity Payments ensures your checkout is flexible and frictionless. Bonus? Faster checkouts usually lead to higher conversions.

2. Upgrade Your Point of Sale Systems

Modern shoppers want to tap, not swipe. If your POS terminal doesn’t support digital wallets or contactless payments, it’s time for an upgrade. Today’s best point-of-sale systems offer touchscreens, real-time analytics, and mobile wallet compatibility—all crucial for staying competitive.

3. Embrace Smarter Payment Processing Solutions

Your payment processing solutions should not only accept various methods but also offer fraud protection, compliance features, and customer insights. Choosing processors that support A2A and digital wallets can help future-proof your business.

Tips for Staying Ahead

Still with us? Great—because now comes the proactive part. Here’s how you can use this data to prepare for the future:

• Optimize for Mobile Wallets: Whether online or in-store, your checkout should be wallet-ready.
• Educate Your Team: Train staff to handle new payment methods confidently.
• Keep an Eye on Open Banking: A2A payments may not be mainstream yet, but they’re gaining momentum fast.
• Consider Offering BNPL: Particularly if you sell higher-ticket items, this can reduce cart abandonment and attract younger buyers.
• Work With Agile Providers: Choose payment processing solutions that evolve with technology, not against it.

Conclusion

The shift is clear: Americans are leaning into smarter, faster, and safer payment methods. From booming digital wallet usage to the decline of physical cash, these trends will reshape the landscape of e-commerce payment solutions and point-of-sale systems for years to come.

Whether you’re an entrepreneur, developer, marketer, or business owner, staying informed is your competitive edge. Make the changes now, and you’ll not only keep up with customers but maybe even get a step ahead.