Alternative payment methods in the US: a complete guide

Last updated: August 2026

The U.S. is a global ecommerce powerhouse, holding the title of the second-largest ecommerce market worldwide. 

U.S. retail ecommerce sales reached a seasonally adjusted $326.7 billion in Q1 2026, up 9.8% year over year, and accounted for 16.9% of total retail sales. 

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.

Are you looking for a simple way to offer alternative payment methods in the U.S. market? Book a call with Primer to find out more.

What are alternative payment methods?

Alternative payment methods (APMs) are ways to pay that fall outside the traditional credit and debit card rails run by networks like Visa and Mastercard. They give shoppers more ways to check out, and they often move money through different infrastructure than cards.

Common examples include:

• Digital wallets such as Apple Pay, Google Pay, and PayPal
• Bank transfers and ACH payments
• Buy Now Pay Later (BNPL)
• Cryptocurrency

For U.S. merchants, offering the right mix of APMs alongside cards can widen customer choice and support checkout conversion.

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 McKinsey's 2024 State of Consumer Digital Payments survey, 92% of U.S. consumers made a digital payment in the past year, a new high. For comparison, McKinsey's 2022 data showed digital payment penetration at 89%, 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 payments ecosystem.

Let's dive into specific data outlining the frequently used payment methods in the U.S.

Payment methods in North America at a glance

Here are four statistics to get a high-level overview of key U.S. payment trends:

1. In October 2025, 74% of U.S. consumers had adopted an online nonbank payment account.
2. Cash accounted for 14% of U.S. consumer payments in October 2025, unchanged from the previous year. 
3. During the 2025 holiday season, from 1 November to 31 December, U.S. shoppers spent $20 billion online using Buy Now, Pay Later, an increase of 9.8% year over year.
4. In October 2025, U.S. consumers made an average of 47.2 payments during the month, with credit cards accounting for 34% of payments and debit cards for 31%.

Top 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 widely used across the U.S. for payroll, bill payments, account-to-account transfers and business payments. 

In 2025, the ACH Network processed a record 35.2 billion payments worth $93 trillion, up 4.9% and 7.9% from 2024, respectively. 

Consumer bill payments and other debits were the largest category, accounting for 17.2 billion transactions, followed by 8.7 billion direct deposits and 8.1 billion business-to-business payments.

Faster usage is also growing: Same Day ACH processed 1.4 billion payments in 2025, an increase of 16.7% year over year. ACH remains particularly well suited for recurring and high-volume transactions, although standard transfers generally settle more slowly than card or real-time payments.

Buy Now Pay Later/Installment payments

BNPL continues to gain traction among U.S. consumers, although adoption remains higher in markets such as Australia and Sweden. 

Growth has moderated from the sector’s initial surge, but more recent data doesn’t indicate that adoption is declining: the share of Bank of America customers making a BNPL payment rose by 0.8 percentage points year over year in June 2025, compared with a 0.6-point increase a year earlier. Usage also reached a new high during the 2025 holiday season, when BNPL generated $20 billion in U.S. online spending, up 9.8% year over year. Major providers include Affirm, Cash App Afterpay, Klarna, PayPal, Sezzle and Zip, which continue to broaden BNPL’s reach across online and in-store payments.

Cash

Cash accounted for 14% of U.S. consumer payments in October 2025, unchanged from 2024.

However, the proportion of consumers who had used cash at least once in the previous 30 days declined from 83% in 2024 to 81% in 2025. 

Cash preferences continue to vary by income and demographic characteristics: a 2026 Federal Reserve Bank of Atlanta study found that lower-income consumers were more likely to prefer cash, although demographics and income explained only a limited proportion of the differences in consumers’ payment preferences.

Checks

Check use in the U.S. peaked in the mid-1990s and has declined persistently since then, as consumers have increasingly adopted card and electronic payment methods. In 2025, checks accounted for only 2% of consumer purchases and 6% of bill payments, while cards represented more than three-quarters of day-to-day purchases. Consumers also rate checks poorly for convenience and speed, preferring cards or electronic methods for most purchases and bills. 

Although checks continue to be used in the U.S., they are now concentrated in more specialized transactions, including certain medical and insurance payments, reimbursements, charitable contributions and some business payments.

Credit and debit cards

Credit and debit cards are the dominant payment methods in the U.S., accepted widely both online and in stores. In October 2025, credit cards accounted for 34% of consumer payments and debit cards for 31%. Credit cards also provide access to borrowing and are widely held, with 82% of U.S. adults owning one in 2025. 

Debit cards, by contrast, draw money directly from a linked bank account, making them a popular option for consumers who want to avoid taking on credit-card debt.

The leading general-purpose card networks include Visa, Mastercard, American Express and Discover. Credit cards typically offer stronger rewards than debit cards, including cash back, travel points and air miles. Cash-back cards were the most common rewards product in 2024, representing 36% of general-purpose credit-card accounts.

Cryptocurrency

About 1 in 5 U.S. adults (19%) have ever invested in or used cryptocurrency, according to Pew Research (June 2026). Its use as a payment method remains limited. That said, cryptocurrency is becoming more popular in specific sectors like gaming and digital goods, with hotspots including California, New Jersey, and Washington.

Digital wallets

A 2023 Forbes Advisor survey found that 53% of consumers use digital wallets more than traditional payment methods. More recently, 69% of U.S. adults used a digital wallet in the past 30 days, according to Capital One Shopping (2026). 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

Peer-to-peer payment services such as Venmo, PayPal, Zelle and Cash App are widely used in the U.S. In 2025, 74% of U.S. consumers had adopted an online payment account. These services allow users to send money through a mobile app, typically using a recipient’s phone number, email address, username or QR code, and are commonly used for splitting bills, paying rent and sending money to friends or family. 

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.

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

Many 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, 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.

How to choose the right payment methods for your business

Offering every payment method available isn't the goal. The goal is offering the right ones for your customers and your business model. Use the following criteria to decide:

Know where your customers are and how they prefer to pay

Payment preferences vary by market. A shopper in the U.S. may reach for a digital wallet or BNPL, while a customer abroad may expect a local payment method you don't yet support. Map your customer base by region, then match your checkout to the local payment methods each market actually uses.

Match methods to your business model

A one-off ecommerce purchase and a recurring B2B invoice call for different rails. For subscriptions, recurring billing, and B2B transactions, ACH and bank transfers keep costs low. For fast retail checkout, cards and digital wallets tend to convert best. Learn more about payout rails here. 

Weigh cost against conversion

Every method carries a different payment processing cost, and the cheapest option isn't always the most profitable. A higher-cost wallet that lifts checkout conversion can earn more than a low-cost method your customers skip. Compare the fee against the revenue each method brings in.

Factor in settlement speed and security

Settlement times differ. Cards and wallets clear quickly, while ACH transfers can take days. Weigh that against your cash flow needs, and check that each method carries the fraud and security controls to protect both you and your customers.

Prioritize ease of integration

A payment method only helps if you can actually launch it. Options that require months of engineering work slow you down and make it harder to adapt as preferences shift. Prioritize methods you can spin up and remove without heavy technical lifting.

Primer lets you do all of this through a single integration. You can add and manage cards, digital wallets, ACH, BNPL, and more from one platform, so your team can match payment methods to each market without waiting on engineering.

Four ways Primer helps businesses unlock the top payment methods in the U.S.

Primer’s unified payments infrastructure helps businesses add, manage, and optimize payment methods through a single integration. Instead of building separate connections and reporting processes for every provider, teams can launch new options faster, control how payments are processed, recover failed transactions, and improve performance over time.

1. Add and manage alternative payment methods faster

Adding a new payment method usually requires a separate integration, compatibility testing, and ongoing maintenance. This slows down launches and creates more work for engineering teams.

With one integration to Primer, businesses can access popular U.S. payment methods, including Apple Pay, ACH, Google Pay, Klarna, PayPal, and Venmo.

Primer Checkout then lets teams control which methods customers see and how they appear. Payment options can be displayed based on factors such as location, currency, and device, helping businesses create a more relevant checkout experience without building separate flows for every provider.

2. Control routing and run experiments with Workflows

Adding a payment method does not guarantee strong performance. Authorization rates, costs, and customer preferences can vary by provider, transaction type, and market.

Primer Workflows gives payments teams a visual, no-code way to control how transactions are processed. Teams can set routing rules, apply advanced conditions, and update payment logic without relying on engineering for every change.

They can also run A/B tests across processors or 3DS strategies, compare results by region, and route more traffic to the better-performing option. Every route, decision, and outcome remains visible, making it easier to understand how each payment method is performing.

3. Recover failed payments with Fallbacks

A failed payment does not always mean the customer cannot pay. Transactions may be declined because of processor outages, technical errors, timeouts, or other temporary issues.

Primer Fallbacks automatically retries an eligible failed payment through a selected backup processor, without requiring the customer to restart checkout. Primer can also reuse the original 3DS authentication data, so the customer does not need to authenticate again.

Teams can activate Fallbacks within a Workflow and track every retry, outcome, and recovered payment in the Primer Dashboard. Primer reports an average payment recovery rate of 38% with Fallbacks and more than $410 million in recovered payment volume.

4. Analyze, investigate, and improve performance

Managing multiple payment methods can leave data fragmented across providers and dashboards.

Primer Observability standardizes payment data in one place, allowing teams to compare performance by payment method, processor, region, customer segment, and other factors.

Primer Monitors tracks key metrics in near real time. Static Monitors alert teams when a metric crosses a set threshold, while Dynamic Monitors identify unusual changes such as drops in authorization rates, shifts in transaction volume, or processor outages. Alerts can be sent by email or Slack and connected to Workflows to trigger further action.

Companion helps teams investigate these changes faster. They can ask questions about processor performance, decline trends, 3DS results, or fallback recovery in plain English. Companion analyzes the relevant payment data, identifies likely causes, and recommends possible next steps, while leaving the final decision with the team.

Together, Checkout, Workflows, Fallbacks, Observability, Monitors, and Companion help businesses manage the full lifecycle of a payment method, from launch and routing to recovery, analysis, and ongoing optimization.

How Primer helped AppsFlyer expand payment choice worldwide

AppsFlyer is a Modern Marketing Cloud that powers more than 15,000 brands and measures over 100,000 active mobile apps across 190+ countries. After reaching nearly $400 million in annual recurring revenue in 2023, the company wanted to give its B2B customers a faster, more flexible payment experience.

Using Primer’s unified infrastructure and no-code Workflows, its payments team can add payment methods and processors, build multi-country payment flows, and adjust routing without relying on engineering for every change.

Since launching with Primer, AppsFlyer has:

• Enabled several new payment methods
• Connected two payment service providers
• Gained a unified view of payments and payment method performance
• Started testing different routing strategies
• Set up Monitors to flag performance changes when key thresholds are breached

Primer also gives AppsFlyer the ability to use Fallbacks, automatically retrying eligible failed payments through a backup processor. This helps the team improve payment recovery without asking customers to restart the payment process. The result is greater control, less dependence on engineering, and more flexibility to respond to changing customer preferences. 

By making it easier to launch payment methods, optimize routing, recover failed transactions, and understand performance, Primer is helping AppsFlyer turn payments into a strategic growth driver.

Use Primer to easily implement alternative payment methods in the U.S.

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.

Book a demo to try it for yourself.

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FAQ: Alternative payment methods in the US

Why are alternative payment methods so popular in the U.S.?

Consumer expectations are shifting toward convenience, speed, and security. Digital wallets, contactless payments, ACH, and BNPL are gaining traction because they enable faster checkout and align with modern payment preferences. Primer helps merchants meet this demand by providing fast access to leading APMs and e-wallet options such as Apple Pay, Venmo, Klarna, and more—without requiring multiple integrations. Primer also supports secure payment experiences through features such as tokenization.

What’s the benefit of accepting ACH payments for ecommerce?

ACH transfers are a cost-effective way to process USD payments and are widely used for recurring billing, direct debits, B2B payments, and other e-commerce transactions in the U.S. However, ACH can be complex to implement and typically settles more slowly than real-time payments. Primer supports ACH through a single API integration and provides observability tools to track payment performance across payment methods, including bank transfers.

Learn more: How to accept ACH payments: A complete guide

How can I reduce friction at checkout with so many payment options?

Offering more choice can increase conversions, but only when payment methods are implemented smoothly. Primer Checkout makes it easy to present cards, bank payments, BNPL, and e-wallet options through one streamlined interface. This gives customers flexibility without creating a cluttered or confusing checkout experience.

Is it possible to monitor the performance of new APMs in real time?

Yes. Primer’s Observability dashboard provides real-time data across all payment methods, including success rates, transaction performance, and anomalies. With Monitors, your team can receive alerts when an APM underperforms, investigate potential issues such as increased transaction fees or declining approval rates, and act quickly to resolve them.

Do I need engineers to keep adding new payment methods?

Not with Primer. Our no-code dashboard lets your team add, remove, and test new APMs in minutes: without code changes or ongoing developer input. Instead of building and maintaining a separate payment gateway integration for every provider, your team can experiment faster, reduce dependencies, and accelerate time to revenue.

How can I offer local payment methods across multiple regions?

If you’re scaling into the U.S. or expanding globally, you’ll need more than card payments. Primer lets you localize your payment strategy with region-specific APMs, including bank transfers, direct debits, e-wallets, and other local payment methods, while managing them through a single payments infrastructure.