Online Payment Statistics 2025: 75+ Key Trends & Data

Whether an online business thrives or falters often hinges on understanding customer payment expectations.

As you manage your business, payment preferences change; staying updated requires constant effort. Data provides essential guidance.

Having assisted website owners in refining their payment systems, we’ve observed how relevant insights greatly improve business outcomes.

Businesses making payment choices based on data, not hunches, consistently achieve better results. These 75+ online payment statistics offer the clarity needed for sound decisions.

You’ll identify preferred payment methods, understand trends impacting your business, and learn to design payment experiences encouraging more sales.

The Ultimate List of Digital Payment Statistics

We’ve researched industry reports and used our experience to compile these important payment insights.

These online payment statistics are organized into sections for easy navigation:

General Statistics on Online Payments

Let’s begin by examining the overall landscape of online payments. These statistics highlight the significant expansion and influence of digital payment methods in today’s business environment.

1. Digital payments are now used by 90% of consumers.

The broad acceptance of digital payments is more than a fad; it’s becoming standard practice. An increasing number of individuals are opting for digital payment solutions for both online and physical store transactions.

For business operators, providing digital payment options is now a necessity, not a luxury. It’s crucial to remain competitive, or you risk losing customers and causing shopping cart abandonment.

2. Cash usage is decreasing, accounting for only 7% of spending in developed nations and 16% in developing nations.

These figures illustrate a significant reduction in cash transactions globally.

Even in developing nations, where cash was traditionally dominant, digital payments are rapidly gaining popularity. This transition indicates that businesses globally must prepare for a future with less reliance on cash.

3. Mobile point-of-sale leads the digital payment sector, with experts predicting it will process $12.56 trillion in transactions by the end of 2025.

Even if you operate a physical storefront, your customers anticipate the ability to pay via their mobile devices. Providing digital payment options through your point-of-sale system can help you retain sales that might otherwise be lost to competitors offering such options.

Furthermore, customers value the ease of avoiding physical cards.

Additional Digital Payment Statistics

• Global digital payment transaction value reached about $9.5 trillion in 2023 and is projected to reach $14.8 trillion by 2027.
• Digital payment volumes at POS were $14.2 trillion in 2024; global ecommerce payments are tracking around $9.5 trillion in 2023, growing to $14.8 trillion by 2027.
• Businesses spend roughly $138 billion annually on fees for processing online payments.
• Excluding China, Visa and Mastercard process 90% of global online payments, holding a combined value of about $850 billion.
• Regarding payment gateways, large corporations account for 55% of processed transactions, while small and medium-sized businesses handle 45%.

Popular Digital Payment Methods and Processors

Now, let’s examine the companies that facilitate online payments. These statistics illustrate the leading payment processors and customer payment preferences.

4. PayPal leads the payment processing market share (25.8%), followed closely by Stripe (23.4%), Shopify Pay (21.3%), and Amazon Pay (3.6%).

Payment processors manage the complex process of transferring funds from your customer’s account to your business account. This involves verifying payment details, detecting fraud, and ensuring secure fund transfers.

Although PayPal has historically been dominant, Stripe’s growth has been substantial. We often suggest Stripe due to its broader feature set and typically lower transaction fees.

Many WordPress payment plugins, such as WP Simple Pay, are designed to integrate directly with Stripe. For business owners seeking an alternative to a full eCommerce platform, this is a recommended approach.

Our detailed WP Simple Pay review provides further information about this plugin.

Shopify Pay has seen increased adoption due to the rise of online stores, and Amazon Pay benefits from the established reputation of the Amazon brand.

A majority of individuals opt for digital wallets (50%) for online payments, with credit cards (22%) and debit cards (12%) following behind.

This trend is understandable, as digital wallets offer increased speed compared to manual card entry, enhanced security, and the flexibility to utilize funds from various sources.

Integrating digital wallet functionality into your website is simpler than anticipated. WP Simple Pay, for example, includes native support for widely used digital wallets like Apple Pay and Google Pay, helping you capture more sales.

Additionally, you gain access to useful functionalities like payment form templates, recurring payment options, and location-specific tax calculations, which contribute to a polished payment experience for your clientele.

6. In the United States, PayPal dominates digital wallet usage (36%), while Apple Pay (20%) and Venmo follow (16%).

These platforms hold leading positions due to user trust and ease of use. PayPal‘s early involvement in eCommerce has made it a recognizable name, while Apple Pay’s easy connection with iOS devices provides convenience for iPhone owners.

Conversely, Venmo‘s social features have made it popular for peer-to-peer transactions, especially among younger demographics.

Integrating widely-used payment gateways into your WordPress website is generally a simple process. For e-commerce stores, WooCommerce provides extensions to enable these payment options.

If your business focuses on digital downloads, Easy Digital Downloads may be a better fit. We have used it for years to distribute our WordPress plugins, and have found it to be very reliable.

The Easy Digital Downloads plugin has built-in support for digital wallets, including Apple Pay, Google Pay, PayPal, and Cash App. Read our Easy Digital Downloads review to learn more.

The percentage of users using three or more digital wallets has decreased by 10%, while the percentage of single-wallet users has grown by 10%.

This indicates a preference for simplicity in payment methods. However, businesses should still provide a range of options because customers often prefer different wallets.

Consider your customers’ locations when selecting payment methods. In the United States, Cash App is gaining traction, particularly among younger demographics.

European countries often have their own preferred methods – like Bancontact in Belgium and iDEAL in the Netherlands.

8. Funding preferences for digital wallets differ by country. Credit cards are preferred by Americans (36%), while debit cards are favored by British and Australian consumers (50% and 47%).

While digital wallets are now a popular online payment method, credit and debit cards remain relevant, since they are frequently used to fund those wallets.

Furthermore, having the option to pay with traditional credit and debit cards provides customers with an alternative if digital wallets fail.

Beyond WP Simple Pay, consider utilizing a form plugin such as WPForms to facilitate payments on your website. We employ it for contact forms on CanadaCreate and other sites.

If you only sell a limited number of products/services, this represents another excellent way to have a simple payment form. Because WPForms works with both PayPal and Stripe, you can accept most common payment methods without needing complex setup procedures.

Consult our guide on accepting credit card payments in WordPress for further details.

Further Online Payment Statistics of Note

• PayPal maintains strong adoption, with 40% of US adults using it when shopping online.
• Stripe provides the payment infrastructure for more than 1.597 million sites around the globe.
• Roughly 1,000 new businesses begin using Stripe each day.
• Digital wallets process 50% of global eCommerce spending and 30% of global point-of-sale spending.
• For brick and mortar retail, payment methods are more distributed, with digital wallets at 30%, credit cards at 27%, and debit cards at 23%.
• Online P2P payments account for 22% of all digital transactions made.
• 24% of US adults use Apple Pay for online transactions.
• Cash App is now a significant platform, boasting 115 million users in America.
• In China, Alipay shows impressive daily usage, with 45% of adults using it daily and another 41% weekly.
• Approximately 80 million merchants globally accept payments via AliPay.

Consumer Demographics and Payment Choices

Let’s now look at how customers make decisions about payments and what influences their buying behavior.

9. 75% of consumers want to use their preferred payment method when shopping.

Have you ever found the perfect product online, only to realize that the store doesn’t accept your preferred payment option? You’re not alone. Many users would think twice and even abandon their purchase if they can’t use their favorite payment method.

Having a payment form that offers multiple payment options will make your customers feel more comfortable buying from you. This flexibility can help reduce cart abandonment and boost your sales.

But don’t worry. Offering this feature is not that complicated.

For WordPress users, you can learn more about setting this up in our guide on how to let users choose their payment method in WordPress.

10. PayPal users shop 60% more often compared to people who use other payment methods.

This statistic makes sense when you consider PayPal’s widespread acceptance across online stores. When customers know they can use their PayPal account almost anywhere, they’re more likely to make purchases without hesitation.

This higher purchase frequency also shows how much customers value familiar, trusted payment methods. When they see a payment option they’ve used successfully before, they feel more confident about buying.

11. 80% of consumers say a smooth payment process matters more than other online shopping features.

Your store’s payment experience can make or break a sale. Even if you have great products and competitive prices, a complicated checkout process might drive customers away.

It’s not just about having diverse payment options; subtle details count. Displaying the full cost initially, encompassing taxes and shipping, is crucial. This prevents unexpected costs that could lead to cart abandonment.

Consider implementing address autocomplete features to simplify the checkout process. These minor conveniences collectively contribute to a dependable and seamless checkout experience.

Additional Statistics on Payment Behavior

• Approximately 48% of shoppers consider diverse payment options essential for purchases.
• Roughly 13% of shoppers abandon online shopping carts if there are not enough payment methods available.
• For 10% of global consumers, using their preferred payment method is the most critical part of their shopping.
• In 2023, card payments surpassed cash as the preferred method for transactions under $25.
• Cash is used for only 12% of payments by individuals under 55, compared to 22% for those 55 and older.
• Trust and security are the primary concerns for 69% of consumers when selecting a digital wallet provider.

Insights into eCommerce Payments

Payment processing significantly influences sales. The most recent eCommerce payment data shows what drives successful checkouts.

Online stores that provide four express checkout options achieve 67% conversion rates; in comparison, offering only one option yields 54% and having no express checkout results in 52%.

Express checkout enables customers to finalize purchases swiftly, often with a single click, utilizing stored payment details. A prime example is Amazon’s ‘Buy Now’ option; such functionalities streamline the buying experience.

These elevated conversion rates are logical. Minimizing the steps between the desire to purchase and the completion of the transaction reduces the likelihood of customer hesitation.

To integrate express checkout into your WooCommerce store, consider using FunnelKit. This sales funnel plugin allows for checkout process optimization, including the implementation of express checkout options.

Moreover, FunnelKit supports all the aforementioned payment methods. It also provides A/B testing functionalities, enabling you to determine the most effective checkout layout for your store.

For more comprehensive information on FunnelKit’s features, consult our in-depth FunnelKit review.

13. Checkout processes that take longer than 90 seconds can reduce conversion rates by 47%.

Speed is crucial in online checkout scenarios. While customers exhibit slightly more patience during payment than while browsing, a protracted checkout sequence can still negatively impact sales.

Enhance checkout speed by optimizing your eCommerce website’s performance. This includes choosing a robust hosting provider, optimizing images, and limiting resource-intensive plugins that could delay checkout.

Another approach involves customizing the checkout process and eliminating unnecessary steps. For instance, reduce the number of required form fields and offer a guest checkout option. These adjustments can noticeably decrease checkout time.

Consider providing a one-click checkout option. This enables customers to finalize purchases with a single click, using their pre-saved shipping, billing, and payment information.

This facilitates the quickest possible checkout, leading to a substantial increase in conversion rates.

According to data, 36% of retailers prioritize minimizing payment processing fees.

These fees can accumulate rapidly, particularly for lower-priced items.

As an illustration, on a $5 item purchased via PayPal, you might pay 3.49% + $0.49 per transaction, totaling approximately $0.67 on a single $5 transaction.

Extrapolating this to 100 sales, the fees amount to $67. Such fees can significantly erode the profits of small businesses selling inexpensive items.

Fortunately, there are multiple methods to lower these fees.

One strategy is to transfer payment processing fees to the customer. This allows you to preserve your profit margins while ensuring cost transparency.

If you use Stripe, a comprehensive guide detailing methods for reducing Stripe transaction fees is available, potentially leading to cost savings.

Around 35% of businesses intend to invest in advanced payment methods, including live chat, social media payments, and AI.

These evolving payment methods are reshaping the online shopping experience. Customers, for instance, now have the option to purchase items via Facebook Messenger or during live chat sessions with customer support.

If you want to sell through chat on your website, LiveChat is a great option. We use it ourselves on CanadaCreate Pro Services to communicate with potential customers.

The great thing about LiveChat is it can connect with payment processors like PayPal and Mollie. This lets you accept payments, manage subscriptions, and handle sales right in your chat conversations.

Visit our LiveChat review for a deeper understanding of the platform.

More eCommerce Payment Stats

• Good payment systems can boost customer retention by 15% to 20%.
• Adding popular digital payment options like PayPal, Apple Pay, and Shop Pay can increase conversion rates by up to 50%.
• When it comes to checkout design, single-page checkouts convert better at 61% compared to multi-page checkouts at 56%.
• Although guest shoppers account for 59% of total eCommerce orders, their conversion rate is 52%, lower than the 64% conversion rate of registered customers.
• Introducing new payment methods can lead to a sales increase of around 24% for small businesses.
• 48% of businesses lose up to 10% of their international sales because their payment processors don’t offer suitable payment options for global customers.
• Payment failure rates typically range from 5% to 10%, depending on location and payment method.
• Businesses that provide PayPal as a payment method often achieve improved performance, reflected in an approximate 25% increase in overall conversion rates.
• When enterprises integrate PayPal, they frequently experience even more favorable outcomes, with roughly 33% more finalized transactions when contrasted with alternative payment solutions.

The Rise of “Buy Now, Pay Later” Methods

“Buy Now, Pay Later” (BNPL) options are increasingly shaping online purchasing behaviors. Consider these key aspects:

PayPal Credit leads the BNPL sector with 57% consumer usage, ahead of Afterpay (29%), Affirm (28%), Klarna (23%), and Zip (19%).

These platforms attract users due to various distinct features.

Certain BNPL options, such as Affirm, waive late payment fees, whereas others, including Afterpay, don’t impose minimum spending thresholds. Klarna also provides interest-free payment plans.

Prior to integrating BNPL into your e-commerce platform, it’s crucial to investigate which providers resonate most with your target demographic. Offering their preferred payment methods maximizes usage and return on investment.

About 40% of consumers favor BNPL over credit cards when making substantial purchases.

This trend presents a potentially transformative opportunity for businesses specializing in higher-value products.

For instance, if your business offers furniture, consumer electronics, or specialized services, incorporating BNPL options could drive increased sales. This is primarily because BNPL makes larger expenditures appear more attainable for prospective customers.

A substantial 43% of holiday shoppers base their purchasing decisions on the accessibility of BNPL services.

This significant figure is particularly understandable during holiday shopping periods, as consumers seek ways to distribute their spending across multiple payments.

However, before adding BNPL to your store, you need to consider the costs carefully. We’ve found that the processing fees for BNPL services can be higher than regular credit card fees.

You might also see more returns with BNPL purchases because this payment method often encourages impulse buying. This can hurt your bottom line when you factor in return shipping and restocking costs.

If you’re not confident in adding BNPL services, then you may want to consider enabling deposit payments instead. This is much more straightforward because you can control the deposit amount and payment terms.

More BNPL Statistics

• 29% of consumers have used BNPL services, with another 15% saying they are interested in trying them.
• Users choose BNPL for three main reasons: easier checkout (45%), payment flexibility (44%), and lower interest rates (36%).
• Half of both Gen Z and Millennial shoppers use BNPL platforms for purchases, making them the most likely age groups to use this payment option.
• 58% of BNPL users keep their monthly payments modest at $100 or less.
• Electronics tops the BNPL purchase list in the US, with 50% of Americans using these services to buy them.
• 80% of BNPL users start their shopping at BNPL provider websites rather than retailer sites.
• 68% of BNPL users decide to use installment payments before reaching checkout.
• When given a choice, 40% of BNPL users would have used credit cards instead, while 29% would have used debit cards or cash.
• PayPal Credit drives twice as many purchases compared to their standard checkout option.

Mobile & Contactless Payments

When talking about digital payments, it’s important to talk about mobile and contactless options because they’re quickly becoming the norm.

Let’s see how these payment methods are reshaping the way people pay.

19. 46% of card users have switched to contactless payment methods like mobile payments, digital wallets, and online banking.

The convenience of paying with just a phone tap or quick scan has made traditional card swipes feel outdated.

For brick-and-mortar business owners, this means you will need to ensure your payment system can handle these modern payment methods.

20. QR code payments are set to grow by over 590% in Southeast Asia.

QR code payments are becoming popular because they’re simple to use and don’t require expensive hardware – just a smartphone camera.

This payment method is especially common in Southeast Asian markets.

For example, in countries like Thailand, customers often pay by scanning QR codes through apps like GrabPay or their local bank apps.

21. Biometric payments are expected to reach 1 billion users by the end of 2025.

While this sounds impressive, consider carefully whether your business needs biometric payment options. Biometric payments make more sense for high-security transactions or specific industries like banking and healthcare.

If you’re running a standard WordPress website, focusing on popular payment methods like digital wallets and card payments will serve your customers better.

More Mobile Payment Statistics

• Because of the pandemic, 79% of consumers globally now use contactless payments.
• In the United States, 70% of merchants say customers are asking for contactless payment options.
• Most users access digital wallets through smartphones (68%) or smartwatches (41%).
• Generation Z leads the contactless payment trend. They are 61% more likely than other age groups to use tap-to-pay for their debit transactions.
• Looking ahead, QR code payments in the US are expected to gain 16 million new users by the end of 2025.
• The market for biometric payment authentication is projected to grow 20% annually, reaching $15.8 billion by 2027.

Alternative Payment Methods

Beyond traditional cards, digital wallets, and BNPL services, several other payment methods are gaining traction. Let’s look at some interesting trends:

22. About 80% of US shoppers who use cryptocurrency for payments choose Bitcoin.

While crypto payments aren’t mainstream yet, they’re becoming more popular among tech-savvy customers. Some buyers prefer crypto because of its privacy features, while others appreciate avoiding currency conversion fees for international purchases.

For businesses, accepting crypto can mean lower processing fees and no chargebacks. This is because crypto transactions are verified by the blockchain network instead of banks or card companies, making them final and secure.

If you’re interested in adding this option, check out our guide on how to accept Bitcoin payments in WordPress.

23. In Europe, 25% of online purchases are paid through bank transfers using the SEPA system.

SEPA (Single Euro Payments Area) is a payment system that makes bank transfers as easy as local payments across 36 European countries.

It’s popular because it’s secure and usually has lower fees than credit cards. What’s more, it feels familiar to European customers who regularly use bank transfers.

For businesses selling to European customers, SEPA payments offer several advantages. There’s no risk of chargebacks, fees are typically lower than credit cards, and payments are guaranteed once cleared. 

If you want to tap into the European market, we have a detailed tutorial on how to accept SEPA payments in WordPress to help you get started.

More Alternative Payment Statistics

• The cryptocurrency payment market is growing rapidly, expected to increase by 70% yearly and reach $4.5 billion by 2026.
• The Automated Clearing House (ACH) Network processed 8.4 billion payments worth $21.5 trillion in the third quarter of 2024. 
• In Europe, Giropay has emerged as a significant player, ranking as the 10th most popular payment processor globally.

Payment Security & Trust Statistics

With online fraud on the rise, payment security has become a major concern for shoppers.

Let’s look at what the last few digital payment stats tell us about security and trust in online transactions.

24. 21% of consumers fear credit card theft, while 19% worry about misuse of their personal data.

This concern is well-founded, considering the amount of payment fraud today. In the US alone, 52 million Americans have had fraudulent charges on their cards, with unauthorized purchases adding up to more than $5 billion.

For this reason, it’s important to make your payment process as secure as possible and show customers that their data is protected.

You also want to secure your WordPress website in all areas to prevent hackers from accessing sensitive payment information on your site.

25. Adding trust badges to payment forms can increase conversions by 42%.

Trust badges are those small security symbols you often see on a site or during checkout, like Norton Secured or VeriSign.

Think of them as digital versions of storefront security system stickers – they show customers your site is protected.

These badges work because they provide visual social proof that your checkout is secure. When customers see familiar security logos, they feel more confident sharing their payment information.

Besides trust badges, you should also enable an SSL certificate on your website. This adds the padlock icon in the browser’s address bar and encrypts customer data.

It’s especially important because Google warns visitors about websites without SSL. This can scare away potential customers before they even reach your website.

26. Businesses that thoroughly test their payment systems see 25% fewer losses from fraud.

When testing payments, you need to look for several key issues.

First, check if your payment forms handle errors correctly, like expired cards or insufficient funds. Then, you will need to see if the transaction amounts are accurate and that customer data is being properly encrypted.

You should also test if your fraud prevention measures can catch suspicious activities, like multiple failed payment attempts.

If you use WP Simple Pay, you can use its payment testing mode to simulate different payment scenarios.

This way, you can catch potential problems early and ensure your payment system works smoothly when real customers make purchases.

More Payment Security Statistics

• 7 in 10 consumers have security concerns about one-click checkout features.
• Businesses that optimize their payment processes can see conversion rates improve by 10-15%.
• Automated testing of payment systems can reduce payment bugs by up to 40%.
• Between 25% and 50% of online stores don’t offer important features like two-factor authentication, price matching, and discount coupon code capabilities.
• 41% of businesses were able to recover at least 75% of stolen funds in 2023.
• However, 30% were unable to recover any money at all.

Sources:

ABSR (Absolute Business Solutions & Research), Association for Financial Professionals (AFP), Bank for International Settlements (BIS), Bankrate, BlueSnap, Boston Consulting Group (BCG), Capital One Shopping, Chargeflow, eMarketer, Federal Reserve Services, Fit Small Business, Forrester, IBS Intelligence, Market.us, McKinsey, Merchant Savvy, PayPal, PYMNTS, Statista, Testlio, and Worldpay.

That’s all for our list of online payment statistics, data, and trends you must know. We hope these insights have been helpful to you.

If you want to read more research-based articles like this one, then check out the guides below:

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