North America Payments Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2022 |
| Forecast Data Period | 2024 - 2028 |
| Historical Data Period | 2018 - 2021 |
| CAGR | 15.49 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Payments Market Analysis
The North American payments market is anticipated to register a CAGR of 15.49% during the forecast period. Some of the primary factors driving the growth of this market in the region are the rise of eCommerce, the prevalence of mobile devices, open banking, and digital currency.
- In the United States, American Express is a significant credit card corporation. It is well-known for offering exceptional customer service as well as some of the greatest incentives. From ultra-elite corporate travel cards to daily rewards, American Express has a credit card to fit every cardholder. Credit card issuers (or providing banks) are the institutions (banks or credit unions) from whom credit cards are obtained. The largest banks in the United States are Chase and Citi, while the largest in Canada are TD and RBC. The issuing bank has the authority to set the interest rate, the limit, international fees, and so on.
- Using biometric authentication technologies in transactions is a major trend that is gaining traction in the payments industry. Biometric authentication is an essential payment technique that combines and provides accuracy, effectiveness, and security in a single package. In January 2022, Apple Inc., a payments business located in the United States, released an iOS 15.4 beta periocular sensor that enables Face ID to be used for biometric identification with or without an Apple Watch.
- The payments industry is significantly shifting in both the consumer and business sectors. The rise of real-time payments, more access to and use of customer data, increasing consumer choice among digital and conventional payment methods, and growing rivalry and collaboration between internet behemoths and traditional banks are all hot subjects. These new and ongoing trends are requiring firms to reassess their business strategies in order to foster innovation and client acceptability.
- Technical advancements in the North American digital payment sector are projected to generate attractive development prospects for the market. This platform allows you to divide payments for online purchases using a combination of debit and credit cards with no interest or additional fees. As a result, the platform is expected to assist users in reducing the cost load on individual cards, increasing financial privacy, and building credit ratings.
- The COVID-19 pandemic significantly impacted the payment industry in North America. Lockdowns and business closures prevented people from making in-person purchases and altered how they transacted before the outbreak. While overall spending fell due to concerns about the economy and personal finances, people spent more money online, hastening the transition from cash to digital payments. There appears to have been a significant increase in contactless payment solutions, such as cards, smartphones, and wearable devices.
North America Payments Market Trends
Increasing use of digital wallets payments
- Digital wallets are growing more popular among consumers. The fourth quarter of 2022 e-commerce projection climbed 6.5 percent (1.1%) from the fourth quarter of 2021, while overall retail sales have increased 5.7 percent (0.2%) in the same time, as per the US Census Bureau. In Q4 2022, e-commerce sales amounted to 14.7 percent of total revenues. In the United States, wallets exceeded credit cards in 2022 and are estimated to account for roughly one-third of regional e-commerce expenditure by 2025, headed by Amazon Pay, Apple Pay, Google Pay, and PayPal.
- Mobile wallet usage is increasing in the North American payments sector, especially in the US, with more growth projected as contactless POS terminal adoption increases. As per Visa Inc., the number of Visa credit cards in the United States climbed from 368 million in the first quarter of 2022 to 369 million in the second quarter of 2022.
- Furthermore, the e-commerce platforms can accept various payment methods, making it easier for more users to access the business, such as major credit cards, gift cards, and so on. E-commerce platforms such as Amazon, eBay, and Shopify frequently charge monthly and transaction fees to cover online payment processing fees.
- E-commerce sales in the United States are increasing as digital payment experiences improve. This rise reflects consumers' growing comfort with online shopping and their increased use of mobile and handheld devices.
- The buy-now-pay-later (BNPL) service is gaining popularity among North American consumers as an alternative payment solution. Consumers in the United States utilize BNPL for a variety of reasons, including purchasing items that would otherwise be beyond reach, avoiding interest on credit cards, and borrowing money without a credit check. Market participants are implementing various tactics to expand the adoption of BNPL. For example, in May 2022, Affirm, the network of payment that empowers consumers while also assisting merchants in driving growth, and Fiserv, a leading supplier of payments and financial services technical services, announced a partnership to make Affirm accessible to Fiserv enterprise vendor clients. With this collaboration, Affirm will become the first purchase now, pay later service completely integrated within Fiserv's Carat operating system.
United States to hold a majority market share
- Credit cards are the most commonly used payment method in the United States and Canada, both offline and online, with debit cards coming in second. According to the Federal Reserve Bank of New York, balances on credit cards increased by USD 61 billion in the fourth quarter of 2022 to reach USD 986 billion, surpassing the pre-pandemic high of USD 927 billion; loan balances rose to USD 11.92 trillion, auto loan balances to USD 1.55 trillion, and student loan balances to USD 1.60 trillion.
- Moreover, with the enhancement of digital payment experiences, the country's e-commerce sales are expanding. This growth reflects customers' growing comfort with online buying as well as their increased usage of mobile and handheld devices.
- Additionally, the Federal Reserve has integrated the United States' ACH system into local settling systems in Canada, the United Kingdom, the Eurozone, Mexico, and Panama, allowing individuals and companies to move cash directly from U.S. bank accounts to bank accounts in other countries. Financial technology firms are rapidly venturing into cross-border payments, notably peer-to-peer payments. Financial technology firms, for example, are joining the remittance sector, allowing users to fund "mobile wallets" online using their bank accounts and debit or credit cards and sending money straight to overseas mobile wallets.
- Moreover, retail instant payment systems execute small-value interbank transfers such that money is available almost quickly, as contrast to the possibly multiday settlement wait for retail transfers on some traditional bank payment systems. Like other retail payment systems, immediate payment systems often employ bank deposit money but eventually settle in central bank reserve balances. include the Clearing House's RTP Network (RTP), which began in 2017, and the FedNow Service, which the Federal Reserve aims to implement in 2023.
- Due to the growth of the digital payment market, mobile commerce has also changed the way brick-and-mortar businesses operate, particularly in terms of accepting cashless payments. Apple Pay, Samsung Pay, and Google Pay, for example, are among the leading competitors competing with market leaders in their respective countries. With consistent increases in mobile payment in several countries, the North American digital payment market is expanding rapidly.
North America Payments Industry Overview
The North American Payments market is highly competitive, with key players such as Apple Pay, Samsung Pay, Amazon Pay, Google Pay, and many others in the region developing new e-commerce solutions for a wide range of end-user applications. Companies are also investing and forming partnerships in the continent to expand their businesses and provide e-commerce platforms to the country's people.
In December 2022, Splitit, the only white-label service that allows customers to pay by installments utilizing their current credit on their payment method at checkout, and Worldline, a global leader in online payments, announced a cooperation agreement to provide an incorporated card-based installment payments solution to Worldline's vast network of marketplaces and merchants.
In April 2022, Dwolla, a fintech company that drives innovation through sophisticated inter-account payment solutions, announced the release of Virtual Account Number (VAN), a long-awaited feature for connecting banks and fintech. These VANs are process management tool that allows businesses to manage complex payment workflows.
North America Payments Market Leaders
PayPal Holdings Inc.
MasterCard Incorporated (MasterCard)
Dwolla
Amazon.com Inc.
Visa Inc.
*Disclaimer: Major Players sorted in no particular order
North America Payments Market News
- October 2022: PayPal announced the introduction of passkeys as a simple and safe way to log in to PayPal accounts. Passkeys are an innovative industry standard developed by the World Wide Web Consortium and FIDO Alliance that replaces passwords with cryptographic key pairs, providing customers with a secure and simple way to log in to PayPal based on phishing-resistant technology and no shared passcode lock data among platforms.
- June 2022: Paysafe, a highly specialized payments platform, launched a new plan for its Skrill USA digital wallet on Tuesday that caters to the wagering preferences of high-stakes American online gamblers. The new program, which was first introduced with the PlayUp USA sportsbook, offers enrolled players the highest deposit limits in the US gaming industry.
- June 2022: Visa is teaming up with Fundbox, a San Francisco-based working capital platform, to provide financial services for small businesses, including digital payments, cash management, and installment payments for supply purchases. The two companies have introduced the Fundbox Visa Debit Card, which includes tools for managing cash outflows via Fundbox Flex Pay, a spend management product that allows payments for expenses such as travel and supplies.
North America Payments Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness-Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Evolution of the payments landscape in North America
4.5 Key market trends pertaining to the growth of cashless transaction in North America
4.6 Impact of COVID-19 on the payments market in North America
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 High Proliferation of E-commerce, Including the Rise of M-commerce
5.1.2 Smartphone Growth and Electronic Initiatives in the payment market
5.1.3 Increase in Real-Time Payments
5.2 Market Challenges
5.2.1 Data security risks
5.3 Market Opportunities
5.3.1 Transformation to a Cashless Society
5.3.2 New players in the payment market may drive innovation leading to greater adoption.
5.4 Key Regulations and Standards in the Digital Payments Industry
5.5 Analysis of major case studies and use-cases
5.6 Analysis of key demographic trends and patterns related to payments industry in North America (Coverage to include Population, Internet Penetration, Banking Penetration/Unbanking Population, Age & Income etc.)
5.7 Analysis of the increasing emphasis on customer satisfaction and convergence of global trends in North America
5.8 Analysis of cash displacement and rise of contactless payment modes in North America
6. Market Segmentation
6.1 By Mode of Payment
6.1.1 Point of Sale
6.1.1.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
6.1.1.2 Digital Wallet (includes Mobile Wallets)
6.1.1.3 Cash
6.1.1.4 Others
6.1.2 Online Sale
6.1.2.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
6.1.2.2 Digital Wallet (includes Mobile Wallets)
6.1.2.3 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
6.2 By End-user Industry
6.2.1 Retail
6.2.2 Entertainment
6.2.3 Healthcare
6.2.4 Hospitality
6.2.5 Other End-user Industries
6.3 By Country
6.3.1 United States
6.3.2 Canada
7. Competitive Landscape
7.1 Company Profiles
7.1.1 PayPal Holdings Inc.
7.1.2 MasterCard Incorporated (MasterCard)
7.1.3 Dwolla
7.1.4 Amazon.com Inc.
7.1.5 Visa Inc.
7.1.6 Alipay.com Co. Ltd
7.1.7 Alphabet Inc. (Apple Pay)
7.1.8 Google Pay (Google LLC)
7.1.9 Beacon Payments LLC
7.1.10 Interac Corp.
- *List Not Exhaustive
8. Investment Analysis
9. Future Outlook of the Market
North America Payments Industry Segmentation
Payment instruments are mechanisms that allow monies in accounts at credit, payment, or similar organizations to be transferred to a payee in response to a payment order. Credit transfer, check payment, direct debit, and a cash deposit are the most common payment methods. The payment technique of transferring credit from one bank to another is referred to as credit transfer. The North American Payments Market is segmented by Mode of Payment (Point of Sale (Card Payments, Digital Wallet, Cash, Others), Online Sale (Card Payments, Digital Wallet, Others)), and End-user Industries (Retail, Entertainment, Healthcare, Hospitality, Others) and Geography (U.S. and Canada).
The scope of the market excludes online purchases of motor vehicles, real estate, utility bill payments (such as water, heating, and electricity), mortgage payments, loans, credit card bills, or purchases of shares and bonds. As for Point-of-Sale, all transactions that occur at the physical point of sale are included in the scope of the market. It includes traditional in-store transactions and all face-to-face transactions regardless of the location of the transaction. Cash is also considered for both cases (cash-on-delivery for e-commerce sales).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
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North America Payments Market Research FAQs
What is the current North America Payments Market size?
The North America Payments Market is projected to register a CAGR of 15.49% during the forecast period (2023-2028).
Who are the key players in North America Payments Market?
PayPal Holdings Inc., MasterCard Incorporated (MasterCard), Dwolla, Amazon.com Inc. and Visa Inc. are the major companies operating in the North America Payments Market.
North America Payments Industry Report
Statistics for the 2023 North America Payments market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Payments analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
