How people pay for purchases in the US: credit cards, smartphones, and almost no cash

Cash is becoming less and less common in the United States, with Americans preferring cards and mobile payments because they are faster, more convenient and safer. Smartphones are gradually becoming the main wallet, and digital services are becoming the norm. Learn more about how people actually pay in the United States and what trends are shaping the future of payments

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As Finance.ua points out, more and more countries around the world are moving from paper money to digital payment methods, and the United States is one of the most striking examples of this transformation. Here, the payment culture has developed around speed, convenience and security, so cards and mobile services are gradually replacing cash in everyday transactions.

Why Americans have almost stopped carrying banknotes, how the payment system works in the US, and what Ukrainians should know — we'll tell you more in this article.

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Why is cash giving way to digital payments in the US?

Cash payments have long since ceased to dominate everyday life in the US. Cashless methods, from cards to mobile wallets, prevail in shops, cafes, transport and services. A developed infrastructure of POS terminals, high trust in the banking system, and the habit of using fintech solutions have created an environment where paying by phone or card is faster, more logical, and more convenient than taking cash out of your wallet.

Credit cards — the main tool for American purchases

A distinctive feature of the United States is its reliance on credit cards. They are a basic tool for everyday life here. There are several reasons for this:

– a developed consumer credit market;

– bonus programmes and cashback;

– the popularity of ‘buy now, pay later’ services;

– favourable terms for deferred payments.

Credit cards are used to pay at supermarkets, petrol stations, for subscriptions, online purchases, and even small daily expenses. For many Americans, this is also convenient because credit cards are better protected against fraud. In the event of theft, the responsibility often lies with the bank rather than the customer, so the risks for the user are lower.

Debit cards and mobile wallets

The second largest segment of payments is debit cards and mobile solutions. Apple Pay, Google Pay and other contactless services have become a normal part of life. The number of purchases that Americans make remotely is also growing significantly. Online stores, subscriptions, services, and even everyday small payments are increasingly taking place without the use of a physical card. Phones and smartwatches have long replaced plastic wallets.

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P2P transfers in the US

Services for transfers between individuals are extremely popular in the US. Venmo, Zelle, and Cash App are part of everyday life, helping people split the bill at a restaurant, pay back a friend, or transfer money to relatives with just a few clicks. These services are gradually replacing traditional bank transfers, making them faster and cheaper.

Digital trends: smartphone payments

Another trend is the steady growth in the share of mobile payments. Americans are increasingly using smartphones for purchases and financial transactions, and part of the population has already completely abandoned cash in their daily lives. The popularity of contactless technologies is shaping new habits: people expect maximum convenience, instant transactions and minimal bureaucracy.

Is cryptocurrency used for payments in the US?

Americans actively own cryptocurrencies, but their use for payments is still limited. At the same time, cards that allow users to receive bonuses in digital assets have already appeared on the market, and the infrastructure for such payments is gradually developing. However, cryptocurrency is not yet ready to replace traditional payment instruments.

Therefore, the US is confidently moving towards an almost completely cashless economy. Cash remains, but more as a backup option, while cards, mobile wallets and digital services are shaping the modern payment culture.

Are you travelling or living abroad? Take care of your safety!

If you are planning a stay in the United States or another country, it is important to take care not only of a convenient payment method, but also of your own safety. The Visit Ukraine portal offers insurance for Ukrainians abroad — financial protection, access to medical care, and confidence in any situation.

Take out a policy online in a few minutes and travel with peace of mind!

Reminder! The United States has temporarily suspended the Green Card lottery programme after a high-profile tragedy — the authorities promise to review the security system and conditions of participation. The decision has already sparked a wave of discussion among migrants and experts, as millions of people count on this chance every year. What caused the suspension of the Green Card lottery, what changes are planned, and what applicants can now expect — we explain here.

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