Credit cards continued to gain share against all other forms of payment in the US in 2015 according to the The Nilson Report, after measuring 11 methods of consumer payments in the US.
“Our model measures the payment instruments consumers use to make Personal Consumption Expenditures calculated by the US Bureau of Economic Analysis,” explains David Robertson, publisher of The Nilson Report.
Purchases of goods and services totaled $9.550 trillion in 2015, up 3.4% over 2014. The four card-based methods of payment of credit, debit, prepaid, and electronic benefits transfer generated $5.665 trillion in purchases or 59.32% of all consumer payment systems volume.
Credit cards accounted for $2.932 billion, 30.70% of volume. Debit cards accounted for $2.420, 25.34% of volume. Card-based volume is expected to increase every year through 2020, when these methods collectively are projected to account for 69.69%.
The paper-based methods of cash, checks, money orders, travelers cheques, and official checks generated $2.496 trillion or 26.14% of all consumer payment systems volume. Paper-based market volume share fell from 28.20% in 2014, and is projected to be 16.85% by 2020.
The two electronic-based systems are remote and preauthorized payments. In 2015, these generated $1.389 trillion or 14.54% of all consumer payment systems volume.