Cashless Payment Methods on the Rise

Cashless payments in North America are set to expand significantly, with a 7% annual growth through 2028. Business-to-business non-cash transactions are projected to grow from $56.2 billion to $75.5 billion over this period. This growth is heavily supported by advancements in real-time payments systems such as the Federal Reserve’s FedNow and The Clearing House’s RTP network, which enable faster, more secure transactions. Retailers are increasingly seeing a shift in customer preference toward faster and more secure payment methods, as convenience becomes a primary factor.

With a focus on convenience being a factor for customer preference, digital and contactless payments, particularly through mobile wallets (Apple Pay, Google Pay, PayPal), are gaining widespread adoption in North America. Roughly 50% of consumers who use digital wallets prefer the method more than traditional forms of payment. The shift from cash to digital payments reflects not only changing consumer behavior but also the retail industry’s focus on creating seamless payment experiences.

While the trajectory is positive, some challenges remain for the broader adoption of cashless payments. Financial institutions are facing the higher costs associated with implementing instant payment systems and upgrading legacy infrastructures. Concerns about fraud prevention also persist, as institutions work to balance security with the speed of real-time transactions. Despite these hurdles, North America’s payment landscape is steadily moving towards a more cashless future, with real-time payments and digital options at the forefront of this transformation.