Cashless payments are increasingly becoming the norm in the US, with small businesses that need to be agile and competitive among the biggest beneficiaries. With the constant rise in demand, digital wallets, contactless cards, mobile banking, and real-time payments have become standard, providing faster transaction speeds and enhanced security.
When small businesses are up to date with the latest business trends, they can operate more efficiently, enhance customer satisfaction, and make data-driven decisions. One way to stay up to date with the growing digital transaction market is to adopt cashless payments.
Cashless Payment Surge: Key Statistics
In 2024, it is estimated that 86.9% of all point-of-sale transactions in the United States were carried out through cashless payment methods such as cards, mobile wallets, and contactless payments; thus, cash transactions accounted for a progressively smaller percentage of the total transactions. This trend is expected to continue, as the forecast suggests that by 2027, cashless transactions will probably constitute almost 94.1% of the total transactions.
This ongoing shift to cashless payments is reflected in the fast growth of the US digital payments market, which rose to $3.06 trillion in 2024 and is projected to exceed $9.29 trillion by 2033. This development shows an undeniable fact for small businesses: their customers increasingly demand payment experiences that are quick, easy, and safe, so the acceptance of digital payments has become essential for them to remain competitive.
With more access to instant payments, real-time payment rails, and SoftPOS (software point-of-sale) solutions, small businesses will have an opportunity to become more efficient and reduce the costs of cash handling and improve customer loyalty by introducing a variety of cashless options to customers.
Top Trends Shaping Cashless Payments in 2026
The digital payment ecosystem in the US is still evolving, driven by technological adoption, shift towards consumer behavior and more robust financial infrastructure. Here are the key trends that small businesses ought to observe in 2026.
1. Dominance of Tap-to-Pay and Contactless Payments
Over 68% of US card transactions are now contactless-enabled via tap-to-pay, which is driven by NFC-supported cards and mobile wallets such as Apple Pay and Google Pay. Contactless payments reduce checkout time, minimize physical contact, and provide a smooth customer experience.
In recent times, many small businesses have started using contactless payment methods. Among these are highly affordable SoftPOS (software point-of-sale) technologies. SoftPOS solutions allow a smartphone to be turned into a payment terminal without the need for costly hardware. With a growth rate of 23.10% annually, the SoftPOS market is forecasted to reach $1.24B by 2030, up from $365M in 2024.
“The SoftPOS market is expected to grow from USD 365.0 million in 2024 to USD 1.24 billion by 2030, registering a CAGR of 23.10%.”
– Research and Markets
2. Mobile Wallet Popularity and P2P Payments
As of mid-2025, it was estimated that around 65% of adults in the US were using digital wallets. Moreover, digital-wallet payments accounted for a large proportion of online transactions. On the other hand, usage in physical stores was still at a low level, since only 17% of consumers reported that they had used a mobile wallet for their latest point-of-sale purchase.
The convenience and worldwide accessibility of mobile wallets also dominate peer-to-peer (P2P) payments at a market share of more than 70% and 63% of US consumers are now using digital wallets to carry out cross-border payments, which demonstrates their convenience and coverage.
“Mobile Payments Account for 70% of P2P Transactions in the US.”
– PYMNTS
3. Real-Time and Instant Payments
Instant payments that complete the money transfer within a few seconds by FedNow and RTP networks have become the new normal, with volumes expected to reach $307B across the rails by Q3 2025, a huge jump from 2024.
At the same time, a 2025 industry report indicates that around 51% of US companies have access to real-time payment rails (such as the RTP network or the FedNow Service) through which they conduct some transactions.
“Around 51% of US companies now use corporate real-time payment networks (RTP/FedNow) for certain transactions.”
– Instant Payment Guide
4. Integration of AI and Data Analytics
Artificial intelligence, in combination with data analytics, is revolutionizing cashless payment systems primarily through strengthening fraud detection and improving business decision-making. AI has the capability of detecting fraudulent transactions with an accuracy of up to 95%, thus assisting financial institutions in lowering the risk of fraud by 30%. Besides, it studies the behavior of consumers to come up with insightful data that small businesses may utilize in customizing their products and services. Customer experience is equally enhanced by AI-driven analytics, as 90% of the institutions surveyed attribute improved satisfaction to immediate fraud defenses.
“AI-driven fraud detection systems can now identify suspicious transactions with 95% accuracy.”
– Coin Law
Emerging technologies such as blockchain and DeFi can complement AI analytics by allowing for increased transparency and automation of cashless payments via smart contracts. Though they are still at an early stage of implementation, pilot programs like the Bitcoin Lightning Network are examples of how these innovations may facilitate quicker, safer, and more automated digital transactions.
5. Enhanced Payment Security Measures
The cashless economy is highly concerned with security. A secure payment ecosystem is based on payment tokenization, biometric authentication, encryption, and compliance with PCI DSS.
Small enterprises should install secure payment devices, train the staff, and keep watching the breaches, as 46% of cyberattacks are directed at businesses with fewer than 1,000 employees.
“Nearly 46% of cyber breaches affect businesses with under 1,000 employees.”
– Strongdm
Top US States Leading Cashless Payment Adoption
The adoption of cashless payment in the US is highest in states with high urban density, well-established technology networks, and highly digitized consumer populations.
- California: California is the most innovative and early adopter of contactless payments and mobile wallets, with its focus being on Silicon Valley and prime metro regions such as San Francisco and Los Angeles.
- New York: Financial hubs and the large population of New York City make card, tap-to-pay, and transit-linked digital payments faster, and a cashless point-of-sale experience in retail and hospitality becomes the norm.
- Massachusetts: A powerful startup and fintech system in the Boston area fosters early adoption of advanced payment providers, real-time payments, and AI-based fraud systems between small and medium merchants.
- Washington: Mobile wallets, NFC-driven cards, and online payment acceptance are widespread across e-commerce and service companies due to a tech-driven economy and high smartphone penetration.
- Texas: Rapid development in metro regions such as Austin, Dallas, and Houston, along with growing digital infrastructure, is encouraging the general behavior to adopt contactless and real-time payments in daily business activities.
- Illinois: The impact of Chicago, along with the development of fintech, encourages small businesses to upgrade their POS systems and embrace tap-to-pay and other quick, convenient payment methods.
- Florida: Cities such as Miami and Orlando are major tourist destinations where quick and safe contactless payments are vital, and digital wallet payments such as Apple Pay and Google Pay are largely accepted.
- Colorado: Technologically minded customers and new fintech start-ups contribute to faster adoption of cashless payments, especially in cities such as Denver, which have a higher representation of digital and SoftPOS products.
Practical Recommendations for Small Businesses
Small businesses can use cashless payments to boost speed, security, and customer satisfaction without overspending on infrastructure.
- Adopt SoftPOS solutions to turn smartphones or tablets into POS devices, reducing hardware costs and enabling mobile, in-store, or on-the-go payment acceptance.
- Introduce mobile wallets and contactless payments (Apple Pay, Google Pay and NFC-enabled cards) at the register and integrate them with online loyalty programs to encourage repeat shopping.
- Track and control transaction charges by comparing payment processors, learning to negotiate price (interchange plus or a flat rate), and securing lower rates as transaction volume increases.
- Continue accepting some cash to remain inclusive of unbanked or cash-averse customers, while clearly positioning digital payments as the preferred option.
- Invest in staff training of POS devices, SoftPOS, refunds, chargebacks, and reconciliation processes to minimize errors and enhance checkout experiences.
- Prioritize security by working with PCI DSS compliant providers, using encryption and tokenization by default, and scheduling regular updates for all payment apps and terminals.
- Track emerging tools such as real-time payments, AI-driven fraud tools, and new payment rails to enable gradual upgrades rather than disruptive overhauls.
Securing Cashless Payments: Best Practices for Small Businesses
As the number of cashless transactions increases, securing the payment information is an important task for small businesses that depend more and more on cards, mobile wallets, and online digital payments.
- Select payment providers and gateways that are based on highly encrypted protocols, payment tokenization, and sophisticated fraud prevention solutions, and explicitly indicate their PCI DSS compliance.
- Secure tamper-resistant payment devices or softPOS solutions should be used, and all POS, applications, and firmware should be kept up to date with the most recent security patches.
- Also, enable biometric authentication or multi-factor authentication (MFA) where applicable, whenever carrying out an administrator login, remote access, or high-risk activities such as a refund or a change to the payout details.
- Effectively track transactions on a regular basis through dashboard alerts, risk scoring, and reports in order to identify possible abnormalities, chargebacks, or fraudulent activity promptly.
- Train staff on the safe handling of payments, phishing education, and how to identify social-engineering attacks aimed at credentials or accessing POS.
- Only transact on private, encrypted networks, not on an open Wi-Fi network; never use a POS system with public Wi-Fi, and segregate and isolate networks to keep cardholder data confidential.
- Document and test an incident response plan in order to know how the team would isolate systems, send notifications to the providers and contact the customers in case of a suspected breach.
- It is important to remember that a significant portion of cyberattacks target smaller businesses.
Overcoming Challenges to Cashless Payment Adoption
Cashless systems adopted by small businesses often face obstacles such as transaction fees, technology costs, employee training, and customer inclusivity.
- Transaction charges: To manage transaction charges, research processors, opt for interchange-plus pricing and negotiate discounts to safeguard margins.
- Investments in technology: To start with, SoftPOS on smartphones is a low-cost payment method.
- Digital literacy: Provide rapid education on workflow and billing.
- Inclusivity: Keep cash on hand and encourage online payments through advertising.
- Cashless payment transitions are more successful with a gradual implementation process that incorporates feedback.
Cashless Payments FAQs
The following are some frequently asked questions about cashless payments:
How can small businesses use AI to enhance decision-making?
AI can deliver a variety of predictive analytics, including identifying customers most likely to churn, estimating sales using payment trends, and suggesting the best pricing strategies. By connecting AI dashboards with POS systems, it is possible to make real-time, data-driven decisions.
How do cashless payments affect cash flow?
There are several ways in which a small business can benefit from adopting cashless payments. Some of the benefits include faster transaction processing, reduced time spent on traditional cash handling, and instant sales data availability. Besides, cashless transactions provide a steady inflow of money and make it easier for business owners to update their accounts. This gives them more control over their spending and better planning for growth.
Are there regulatory requirements for cashless payments?
Standards like PCI DSS, GDPR (especially when dealing with customer data), and local consumer protection laws are some of the compliance requirements that a small business has to meet. Compliance is the key to avoiding fines, gaining customer trust, and improving brand image.
What operational benefits can small businesses gain from cashless payments beyond speed?
Besides faster transactions, taking cashless payments brings several operational benefits, such as:
- Less chance of errors in accounting and easier reconciliation
- Decreased possibility of theft or misplacement of cash by employees
- Improved capability of analyzing revenue streams and customer behavior
- More straightforward connection with loyalty programs, subscription billing, or CRM systems
Empowering Small Businesses with Cashless Payments
Cashless transactions are to be at the center of how small businesses in the US market operate in order to keep up with the competition, become more efficient, and respond better to customers. Through the use of digital wallets, contactless payments, and AI-based analytics, businesses can achieve cost reduction, time-saving, security enhancement, and get informative data on consumer behavior to become advantageous in the market.
Cheqly is aiding this change by providing business bank accounts with ACH and wire transfer features, as well as physical and virtual debit cards, which can be seamlessly added to digital wallets like Google Pay and Apple Pay. Leveraging such technologies, small businesses have the power to manage their cash flow effectively, make transaction processes hassle-free, and offer customers a payment method that is both user-friendly and secure.
Open a Cheqly business account and go cashless with confidence.