The way people pay for products and services in person and online has changed over the years. Where cash was king (and still has a place in payments today), the shift to digital payment methods is notable. Consumers are looking for flexible payment methods that meet their preferences, and businesses need to offer these options if they wish to remain competitive.
1. Digital Wallets
Digital wallets are one of the top ways that people are making purchases, especially online. PayPal, Google Pay, and Apple Pay hold most of the market share for online payments.
These digital wallets are linked to consumers’ bank accounts and are very convenient, efficient, and secure.
Business websites or checkouts should accept these digital wallet transactions to avoid missing out on sales, especially from younger generations who prefer to pay with their mobiles or with saved digital credentials. Physical stores will require near-field communication (NFC) terminals to process these types of payments.
2. Bank Transfers
Consumers are increasingly looking for convenient systems to transfer money directly between their bank accounts and the business’s bank accounts. These direct transfers are often more affordable for companies than other payment methods.
In the US, FedNow allows instant transfers between 1,000 banks. eTransfer is used in Canada, performing over a billion annual transactions. The benefit of this method is that it avoids traditional card fees, reducing costs for consumers and businesses.
Bank transfers are especially popular for large purchases or recurring payments.
3. Prepaid Cards
Prepaid cards are becoming increasingly popular, especially among consumers who prefer privacy when it comes to transactions. One popular industry where prepaid cards are common is online casinos. Players can make deposits using a prepaid card without having to link their personal bank accounts. Since only the amount on the card can be uploaded, it also ensures responsible gambling.
Prepaid cards are as convenient as traditional bank cards, but are more accessible to those without bank accounts. Money is loaded onto the card through a direct deposit from your bank account, cash at a retailer, or via a mobile app. The cards can then be used to make in-person or online purchases.
Most prepaid cards are backed by American Express, Visa, or Mastercard.
4. QR Codes
QR code payments are common in 2025 and are offered by many physical stores and online retailers. They’re especially popular among smaller businesses.
This contactless payment method is preferred by the younger generation, so if this is a company’s target market, it is imperative that they offer QR codes at checkout. Once a QR code is scanned by the consumer, they’re prompted to pay using a digital or mobile wallet, or perform an instant transfer. It is highly convenient, contactless, and easier to set up and more affordable than traditional card terminals for the business.
In the US, QR code payments are expected to reach 99.5 million in 2025, a significant increase from 83.4 million transactions in 2022. It is especially popular in the retail and hospitality sectors.
5. Credit and Debit Cards
Bank cards remain popular in 2025 and are the preferred payment method of many. However, their use is declining slightly in favor of direct bank transfers and digital wallets (which are still linked to cards).
Credit cards are ideal for larger purchases since customers can pay the price later and also prevent fraud since transactions can be reversed. For businesses, it means increased sales and larger totals. Debit cards are convenient for consumers since payments are immediately deducted from the bank account. Stores should have a modern and secure point-of-sale (POS) system to facilitate these transactions.
6. Cryptocurrencies
More and more businesses are starting to accept cryptocurrencies, particularly Bitcoin. Brands in the luxury, technology, or cross-border sectors are leaning into this payment method to facilitate large international payments.
Although crypto is highly volatile and clouded in regulatory uncertainty, crypto is likely the future of payments. Along with Central Bank Digital Currencies (CBDCs), this payment method offers modern ways for businesses to transact at a global scale.
Although crypto transactions are not yet a must for most businesses, they’re likely to attract a new customer base.
7. Mobile Payments
“Mobile payments” is a broad term that refers to any financial transactions performed with a mobile device, like a phone or tablet. It includes several of the methods discussed above, including scanning a QR code or tapping a phone with NFC. Mobile payments can also include using a banking app that transfers funds through mobile, or direct carrier billing charged to a phone bill.
Spending via mobile is expected to triple by 2032, meaning it is vital for businesses to offer multiple mobile payment methods.
8. Buy Now, Pay Later
Buy Now, Pay Later (BNPL) allows customers to make purchases and take home the product, but only pay at a later time. It is convenient and flexible, and customers can make payments in installments (often without interest).
Most digital wallets, including PayPal, Apple Pay, and Google Pay, allow users to select their payment terms to match their financial situation.
BNPL is a great way for businesses to increase sales and attract new customers; however, it can result in overspending and increased debts, making some customers unable to pay when the payment date arrives.
9. Cash and Checks
Cash is king, and will always have a place in payments, even in the digital age. Cash, including checks, is a traditional payment method and is still currently used for smaller purchases. In the US, around 30% of all transactions are either cash or check, and 52% of Americans prefer cash payments.
The main benefit for businesses is that the money is received instantly, without any processing fees.
Final Thoughts
By monitoring payment trends and offering consumers their preferred methods, businesses will be able to attract and retain customers even when competition in their industry is growing. Although cash is still a top choice for many, digital methods like mobile payments and banking apps are becoming increasingly popular. Companies of all sizes need to be able to meet potential customers where they’re at financially by offering a variety of transaction methods to meet their changing needs.
