The U.S. is a global ecommerce powerhouse, holding the title of the second-largest ecommerce market worldwide. In Q3 2024 alone, retail ecommerce sales surpassed $300bn, trailing only China.
This growth trajectory shows no signs of slowing, with a report from Bloomberg predicting that ecommerce will account for 33% of total U.S. retail sales by 2027.
Americans are clearly shopping online at record levels—but how are they paying?
In this guide, we’ll explore the most popular online payment methods in the U.S., including alternative payment methods, such as digital and mobile wallets, Buy Now Pay Later, cryptocurrency, and more. More importantly, we’ll show how ecommerce merchants can harness these payment trends to unlock new revenue streams and deliver a seamless shopping experience that keeps customers coming back.
In this article:
- The evolution of how U.S. consumers pay
- Payment methods in North America at a glance
- U.S. payment methods in detail: How do shoppers pay in North America?
- Why should you offer alternative payment methods in the U.S.?
- Three ways Primer helps businesses unlock new payment methods in the U.S.
- How Primer helped AppsFlyer offer APMs to thousands of businesses worldwide
Are you looking for a simple way to offer alternative payment methods in the U.S. market? Book a call with our team to find out more.
The evolution of how U.S. consumers pay
Consumer payment preferences have evolved over the past five years, driven by external factors such as the global pandemic and technological advancements.
According to 2023 research conducted by McKinsey, digital payment penetration surged to 89% in 2022, with 62% of users employing two or more forms of digital payment.
While credit and debit cards remain ubiquitous, their usage has shifted dramatically toward contactless and digital wallet transactions. This evolution reflects a growing demand for faster, more convenient, and safer payment experiences—hallmarks of modern consumer expectations.
Equally noteworthy is the rise of integrated solutions beyond mere payment functionality. U.S. consumers increasingly seek features like loyalty and rewards programs and financial services seamlessly integrating with their favorite apps, highlighting a broader shift toward a more holistic payment ecosystem.
Let's dive into specific data outlining the frequently used payment methods in the U.S.
Interested in learning about alternative payment options in other regions?
- Learn about alternative payment methods in Asia Pacific.
- Learn more about alternative payment methods in Europe.
- Learn about alternative payment methods in the Middle East and North Africa.
Payment methods in North America at a glance
Here are four statistics to get a high-level overview of key U.S. payment trends:
- A 2024 survey found that 72% of U.S. consumers have adopted online or mobile payment accounts such as PayPal, Zelle, Venmo, and Cash App.
- Cash accounted for 16% of all payments in 2023, a decrease from 18% in 2022.
- During the final quarter of 2024, $18.5 billion in purchases were made using Buy Now Pay Later (BNPL).
- In October 2023, consumers made an average of 46 monthly payments, with 32% using credit cards and 30% using debit cards.
U.S. payment methods in detail: How do shoppers pay in North America?
Let’s look at the different forms of payment available in the U.S. and how they fare in comparison.
Automated clearinghouse (ACH) or bank transfers
ACH transfers are bank-to-bank electronic transactions processed through the Automated Clearing House network rather than card networks like Visa and Mastercard. These transfers are commonly used for direct deposits, bill payments, and person-to-person transactions. While accepting ACH transfers offers a cost-effective option for businesses, settlement times for ACH transfers are typically longer than those for other payment methods.
Buy Now Pay Later/Installment payments
While BNPL is gaining traction among U.S. consumers, it has yet to achieve the same widespread popularity as in Europe and Australia. According to Bank of America, adoption in the U.S. is showing signs of slowing year-over-year. Despite this, major players like Affirm, Afterpay, Klarna, Sezzle, and Zip remain determined to bring BNPL into the mainstream, working to expand its appeal and integrate it further into the U.S. payment landscape.
Cash
Cash accounted for 16% of all payments in 2023, a decrease from 18% in 2022. The decline in popularity of cash as a payment method varies by age, income level, and even race/ethnicity.
Checks
Check usage has fallen steadily since 1995, as consumers favor credit and debit cards over everyday purchases. The reasons are clear: writing a check is significantly slower and less convenient than swiping or tapping a card. While checks remain legal and occasionally used in the U.S., they are now rare in retail settings, largely reserved for niche purposes like bill payments or specific business transactions.
Credit cards
Credit cards are hugely popular and widespread in the U.S., where they play a central role in consumer spending. The most well-known card networks are Visa, Mastercard, American Express, Discovery, and Diners. Attractive reward programs—such as cash back, travel points, and other perks—are a major incentive for U.S. consumers to favor credit cards over other payment methods.
Cryptocurrency
40% of American adults own crypto as of 2024, although its use as a payment method is limited. That said, cryptocurrency is becoming more popular in specific sectors like gaming and digital goods, with hotspots including California, New Jersey, and Washington.
Debit cards
Debit cards are accepted online and in stores. They lack the rewards of credit cards but are favored by those who avoid credit.
Digital wallets
A 2023 Forbes Advisory poll found that over 50% of consumers use digital wallets more than traditional payment methods. Digital wallet usage is especially prevalent among younger consumers, who are attracted by its convenience. Apple Pay, Google Pay, and Amazon Pay are all trusted digital wallets in the U.S.
Peer-to-peer payments
Services like Venmo, PayPal, Zelle, and Cash App allow individuals to send money to each other using their email addresses, phone numbers, or account details. These services are convenient for splitting bills, paying friends, or making small transactions, and the transfers can be instantaneous or take a day or two, depending on the service.
Prepaid Cards
Dubbed ‘safer than cash,’ prepaid cards are a versatile payment method that can be used for online and in-store purchases when debit and credit cards are accepted. They're popular in the U.S. and are backed by major card networks, including Visa, Mastercard, and Amex.
Payment methods in Canada
Debit and credit cards are widely used by Canadian consumers, making them essential for any successful ecommerce strategy targeting the Canadian market. Accepting payments through Visa, Mastercard, and American Express is crucial, but merchants should also offer Interac.
Interac is a Canadian interbank network that facilitates electronic payments, including point-of-sale transactions and Interac e-Transfer for seamless person-to-person, business, and organization fund transfers. It serves as Canada's primary debit card system and is a key component of the country’s payment ecosystem.
Canadian consumers have also embraced digital wallets. In 2023, Apple Pay was the most popular digital wallet among Canadian consumers.
Why should you offer alternative payment methods in the U.S.?
Here are four key reasons you should offer alternative payment methods in the U.S.
1. Offer greater choice and increase conversion rates
Offering more payment options empowers shoppers to choose their preferred way to pay. By including alternative payment methods, you cater to diverse preferences and elevate the overall customer experience. And when customers are satisfied, they’re more likely to complete their purchases and reduce cart abandonment.
2. Reduce payment friction and speed up the buying experience
Hurdles or obstacles during the payment process can significantly impact conversion rates. Our study revealed that 41% of consumers will abandon their purchase if the checkout takes more than four minutes. Offering alternative payment methods can speed up transactions and boost sales.
3. Increase security to reduce fraud rates
Alternative payment methods have multiple security layers to protect consumers and retailers from fraud. With growing consumer trust in alternative payment methods like mobile wallets, offering these payment options can help ease safety concerns.
4. Entice new customers and increase revenue
Shoppers consistently prioritize convenience above all else. By offering a broader range of payment options—including alternative payment methods—you empower customers to pay with their preferred method. This flexibility enhances the shopping experience and helps businesses overcome geographical and language barriers, opening the door to new customer segments and fueling business growth.
Three ways Primer helps businesses unlock new payment methods in the U.S.
Primer is a unified payments infrastructure that empowers businesses to accept, optimize, and manage payments worldwide with various payment services—all through a single API integration.
By simplifying the complexities of payments, Primer enables you to unlock new opportunities, streamline operations, and accelerate growth.
Here’s how we can help you easily integrate with the APMs (Alternative Payment Methods) you need to achieve your business goals:
1. Quickly add alternative payment methods with our no-code platform
Staying competitive in the fast-paced U.S. market means adapting quickly to customer preferences, including offering alternative payment methods. But, adding each payment option often requires separate integrations, compatibility checks, and ongoing maintenance—placing a heavy burden on your engineering team.
Primer eliminates the hassle. With a single integration to our unified API, you gain instant access to a wide range of popular alternative payment methods, including:
- Apple Pay
- Automated clearinghouse (ACH)
- Google Pay
- Klarna
- PayPal
- Venmo
(See a full list of our integrated payment methods here)
Integration itself takes just a few clicks. Then, you can manage the payment options you offer through our Universal Checkout. You have two options when building your ideal customer flow:
- Our drop-in checkout. With just a few lines of code, you can set up a fully in-context checkout UI with all your payment methods. With this option, anyone on your payments team can quickly toggle payment methods on and off.
For example, during the Apple Pay outage in 2023, Primer customers were able to turn off this payment option in seconds so that end-users didn’t experience failed payments.
- Headless checkout. With this option, your team gets complete control over the checkout experience. Using Primer's SDKs and APIs, you can design and implement a fully branded and optimized checkout flow that meets your specific needs.
To see how simple it is to set up your checkout, read our Universal Checkout documentation
2. View and analyze all of your payment method data in one place with Observability
If you’ve managed multiple payment methods in the past, you likely know how challenging it can be to get the data you need.
Each APM and payment processor uses its own unique data structure, making it difficult to achieve a consistent view. To compare data accurately, you’re left manually reconciling mismatched formats, identifying inconsistencies, and juggling separate reporting standards. This process is not only time-consuming but also highly susceptible to human error.
At Primer, we wanted to make reporting on your payment data simple. That’s why we created the Observability Dashboard. Observability gives you over 100 visualizations and 30+ filters, allowing you to analyze data based on:
- Payment method
- Region
- Customer segment
- Bank Identification Number
- And more
To illustrate, here are just a few of the ways you could use Observability data to enhance your payment strategy:
- Compare the performance of your APMs: Let's say you recently added Apple Pay and PayPal as options at checkout. Observability allows you to compare authorization and decline rates side by side, helping you identify which method is underperforming and make data-driven adjustments.
- Get insights on customer segments: With Observability, you can analyze transaction volumes and average order values across different customer segments, such as age or gender. Uncover valuable trends, like which demographics prefer specific payment methods or spend more, to better tailor your payment strategy and drive growth.
3. Stop payment issues in their tracks with Monitors
As well as giving you all your data in one place, Primer also makes it simple to stay on top of any issues without constantly checking the dashboard.
Our Monitors feature helps you monitor key payment metrics by providing real-time alerts whenever performance issues arise. This allows you to act quickly and resolve issues with new payment methods before they impact your customers or revenue.
There are two types of Monitors:
- Static Monitors: Set fixed thresholds, such as an authorization rate below 85%. If performance dips below this limit, you’ll be notified instantly.
- Dynamic Monitors: These monitors use historical data to predict acceptable ranges for metrics like transaction volumes or decline rates. Alerts trigger when values fall outside these expected ranges.
For example, if you’ve added Google Pay and authorization rates suddenly drop, Monitors will flag the issue immediately. This allows you to investigate and resolve it before it disrupts your checkout experience.
You can choose how you want to be alerted via a web request, email, or Slack message.
By getting real-time alerts through Monitors, you can confidently integrate alternative payment methods, knowing that you’re in complete control.
How Primer helped AppsFlyer offer APMs to thousands of businesses worldwide
AppsFlyer, a global marketing measurement and data analytics leader, supports over 80,000 businesses worldwide, including TikTok, Disney, and SHEIN.
As they scaled to $400M in annual recurring revenue, AppsFlyer recognized the need to deliver a frictionless payment experience for their B2B customers that prioritized flexibility and convenience.
“In our personal lives, we don’t tolerate a clunky payment experience, so why should our customers?” says Shirly Katzir Kaslasy, Senior Payments and Risk Project Manager at AppsFlyer.
To meet this goal, they partnered with Primer to build a payment infrastructure that enabled the quick rollout of alternative payment methods across regions.
With Primer, AppsFlyer introduced region-specific local payment methods, such as ACH in the U.S. and digital wallets in key global markets.
Primer’s platform allowed Shirly to integrate these methods in days instead of months—all without relying on engineering resources.
“Primer has given me complete control over our payment strategy,” Shirly explains. “I can now add new payment methods or processors with a few clicks, ensuring we meet the diverse needs of our customers globally.”
AppsFlyer also used other Primer’s features, such as:
- Fallbacks to automatically reroute failed transactions to a backup processor and reclaim up to 20% of soft decline transactions.
- Adaptive 3DS, which reduced friction by only applying authentication when necessary.
By enabling new payment methods and optimizing workflows, Primer has helped AppsFlyer enhance its customer experience, improve efficiency, and make payments a growth enabler for the business.
Use Primer to easily implement alternative payment methods in the U.S.
In today’s dynamic landscape, integrating alternative payment methods is no longer optional—it’s essential for delivering a seamless payment experience that meets customer expectations.
At Primer, we make this transition effortless. Our unified payments infrastructure empowers businesses to unlock new market opportunities, streamline operations, and easily optimize their payment strategies.
Discover how we're supporting businesses by checking out our case studies.
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