These days, members are flocking to credit unions for a myriad of different reasons. Some want the convenience that credit unions are known for - they want to be able to utilize services where they want, when they want, no matter what. Others strive for the personal level of care and attention to detail that larger financial institutions just aren't capable of offering. Others still strive for both at the same time.

If you had to make a list of some of the most invaluable assets that credit unions have, loyalty is undoubtedly right at the top.

Did you know that, according to 2021 fourth-quarter data from the Federal Reserve Bank of New York, Americans have over $856 billion worth of credit card debt? The amount rose tremendously from the third quarter of 2021, increasing by $52 billion. It is the most significant quarterly increase the U.S. has seen within the past 22 years and the third and only spike since the start of 2020.

Today, consumers have access to more ways than ever to pay for goods and services. Whether it's convenient Buy Now Pay Later (BNPL), Cash App, Venmo, PayPal, or embedded payments—they all represent easier, frictionless payment methods for consumers. But that's not all they share in common: they all pale in comparison to the popularity of credit and debit card solutions.

These days, more and more people are using cards and digital wallets to pay for goods and services. Although many people still use cash on a day-to-day basis, digital payment options are becoming more common, especially among members of the younger generations.

"Cash or credit?" Is that statement becoming a phrase of the past? New technology and tools that support cashless payment options such as tapping a smartphone, waving and paying with a card, or sending an online Peer-to-Peer payment have hastened this process along with changing societal norms and consumer preferences. It feels as though we truly are on our way towards a cashless society.

For some time now, cash has taken a backseat to credit and debit cards in America, and digital and mobile banking has been evolving. The events of the past few years have only accelerated the transformation of more and better digital banking services, digital wallets, and other digital solutions to fill customer and member needs. Those credit unions who adapted and enhanced their digital banking platforms likely satisfied and maintained their members, but some might wonder if digital banking will replace all in-person transactions and maybe even cash itself.

Digital payments and technologies are reshaping how people all over the world spend money--to the point where some economists are debating the future of cash. It’s not just the widespread use of credit and debit cards, but the rise of digital wallets, digital banking apps, direct deposits, instantaneous peer-to-peer payments and digital lending services that are solving people’s banking needs, and as a result, making cash less common.