Report: Digital Wallets Set to Overtake Credit Cards at Checkout by 2030

Credit cards were the most popular payment vehicle U.S. consumers used to complete transactions at the point-of-sale in 2025. But the dominance that physical credit cards hold over other methods of payment when it comes to in-store purchases may soon come to an end, according to the latest edition of the Global Payments Report.

Credit card payments accounted for 40% of the value of U.S. point-of-sale transactions in 2025. Debit card payments captured another 28%. Those two forms of payment led all others in share of transaction value at the point-of-sale for the year. 

But the new report from Global Payments — which is the first of its kind since the company completed its acquisition of Worldpay earlier this year — suggests that consumers won’t be using their credit cards at the cash register as much in the coming years.

By 2030, the report projects that the share of point-of-sale transaction value from credit cards will dip to 36%. In fact, Global Payments estimates that debit card and cash purchases at the point-of-sale will also see a decline in their share of transaction value by 2030.

The popularity of BNPL products has spurred issuers to offer programs that allow cardholders to pay for card purchases in installments.

Rather than turning to cash or physical cards for in-store payments, the report indicates that people will favor the use of digital wallets more in 2030. While only 17% of the value of U.S. point-of-sale purchases came from digital wallets in 2025, Global Payments forecasts that number at 25% in 2030.

Digital wallets already hold a sizable advantage over credit cards in terms of a consumer’s preferred payment tool for online buys. And that advantage is likely to increase by 2030, Global Payments projects.

But credit card issuers shouldn’t allow these statistics to cause them concern. They need look no further than BNPL products for an example of a payment tool that some thought would lead to the demise — or at the very least, a severe weakening — of many issuers’ card programs.

Buy now, pay later solutions may also see more users on the e-commerce front by 2030. But the growth of the BNPL industry has helped motivate credit card issuers to innovate and bring more payment options to cardholders.

“The success of BNPL is a rising tide that lifts multiple payment categories, including the one BNPL was supposed to threaten — cards,” the authors of the analysis from Global Payments wrote in their report.

“Card issuers are capitalizing on this demand by offering card-backed installments that allow consumers to convert a regular card purchase into an installment plan after the sale,” they added.

Credit card issuers may view any shifts in consumer purchasing behavior that lead to a greater use of digital wallets instead of credit cards as a negative development.

As digital wallets increasingly gain traction with people, card issuers risk losing their prominence in a consumer’s financial life. And as more people reach for their cellphones instead of their credit cards to make purchases, brand visibility for issuers can plummet.

But issuers still have ways to motivate cardholders to use their physical cards more for in-person purchases. One strategy they can pursue is making the cards themselves more visually appealing.

Companies that produce cards made out of non-standard materials may have landed on an approach that makes cardholders want to use those tools with greater frequency for in-store purchases.

A recent report from Payments Dive reveals that metal credit cards can be a status symbol for cardholders. Companies have also turned to other materials and design elements to make their cards stand out in a crowded marketplace.

“A card is no longer just a functional tool — it has become a personal object that reflects identity, lifestyle, and values,” Eric Baumgartner, Senior Vice President of North American Payment Services at IDEMIA Secure Transactions, said recently, according to Payments Dive.

More than 40% of U.S. consumers between 25 and 34 years old use digital wallets over other methods when making payments online.

Card issuers that aren’t as concerned with losing visibility at the point-of-sale may have found a reason in the report from Global Payments to be optimistic about the future.

Namely, their volume may go up as digital wallet use increases if people add their credit card information to their preferred wallet. That means that issuers could still grow their bottom lines even if more people leave their physical cards at home when they go shopping.

Younger U.S. consumers are behind much of the trend to move toward digital payments. Among 18- to 24-year-olds, 39% already use digital wallets for the majority of the online payments they make. That number ticks up to 41% for 25- to 34-year-olds.

“While cards still anchor U.S. spending today, the future of commerce is being shaped by younger consumers,” Bob Cortopassi, President and CEO of Global Payments, said in a press release announcing the company’s new report. 

“The future belongs to businesses that understand how their customers want to pay,” Cortopassi continued. “As expectations shift toward choice and flexibility, merchants must evolve their payment systems to serve every demographic — and those that do will unlock the next wave of growth.”