United States (USA) Digital Payment Market Overview, 2029

United States (USA) Digital Payment Market Overview, 2029

The US digital payment sector has a rich and vibrant history that dates back decades, beginning with the introduction of credit cards in the 1950s. Since then, the scene has changed dramatically, with key breakthroughs like the introduction of automated teller machines (ATMs) in the 1960s, electronic data interchange (EDI) in the 1970s, and online banking in the 1990s. These milestones lay the groundwork for today's varied and complex digital payment ecosystem. The US population has rapidly adopted convenient and secure payment options, resulting in a significant shift toward contactless payments. Smartphone ownership by roughly 85% of Americans has helped the quick acceptance of mobile wallets such as Apple Pay and Google Pay, as well as tap-to-pay cards. Furthermore, consumers' increased security concerns, particularly with the deployment of chip-enabled cards and tokenization technology, have fueled the shift to digital payment methods. The booming e-commerce sector in the United States has also played a key influence, mandating flawless digital transactions and emphasising the need of digital payment solutions in daily life.

According to the research report ""United States Digital Payment Market Research Report, 2029,"" published by Actual Market Research, the United States Digital Payment market is expected to grow with more than 14% CAGR from 2024 to 2029. Several main forces are propelling the continuous expansion and innovation of the US digital payment business. Technological innovations, particularly breakthroughs in blockchain and contactless technologies, are constantly improving the efficiency and security of digital transactions. Furthermore, government programs targeted at fostering digital financial inclusion have helped to increase access to digital payment services among various populations. However, despite these favourable tendencies, difficulties remain. Security concerns remain high, with data breaches and fraud posing serious threats, demanding continual efforts to strengthen cybersecurity safeguards. Furthermore, achieving complete financial inclusion remains a difficulty because a section of the population lacks access to cellphones or dependable internet connectivity, limiting widespread use of digital payment alternatives. In the United States, the regulatory landscape around digital payments is complex, with authorities such as the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) overseeing the industry. These policies are intended to protect customers by addressing concerns about data security, privacy, and fair lending practices, while also promoting financial stability in the larger financial system. By enforcing these restrictions, authorities hope to establish an atmosphere in which customers may interact securely and confidently, while also maintaining the integrity of the financial system.

The provision of solutions and services in the realm of digital payments encompasses a comprehensive array of technologies and processes designed to facilitate electronic transactions, money transfers, and financial activities across digital channels such as the internet or mobile networks. These solutions are instrumental in creating an ecosystem that ensures secure, convenient, and efficient digital payments. Transactions can be categorised based on their type, with domestic payments referring to transactions conducted within a country's borders, while cross-border payments extend beyond national boundaries. Payment modes offer diverse options for users, including cards (plastic or virtual), ACH transfers, digital wallets (e-wallets or mobile wallets), and other methods like contactless payments, biometric payments, and bank transfers. These modes cater to various preferences and needs of users, ensuring flexibility and accessibility in conducting financial transactions. Moreover, digital payment solutions serve a wide range of industries and end-user verticals, including Banking, Financial Services, and Insurance (BFSI), healthcare, IT & telecom, media & entertainment, retail & ecommerce, transportation, and others. Each industry sector benefits from tailored digital payment services that streamline transactions and enhance operational efficiency. In essence, the digital payment landscape thrives on the diversity and adaptability of its solutions and services, catering to the evolving needs of users and industries alike in an increasingly digital world.

The expansion of digital payments into new use cases, such as peer-to-peer (P2P) transactions and micropayments, offers considerable prospects for the sector. This rise is being spurred by the growing popularity of alternative payment methods such as cryptocurrencies and buy-now-pay-later (BNPL) services, which provide consumers with more flexibility and choice. Money20/20 and Finovate events provide opportunities for industry stakeholders to demonstrate innovations and trends, encouraging collaboration and knowledge exchange. Payment structures differ based on the method and service provider used for pricing and segmentation. Common pricing components include transaction fees, monthly charges, and interchange costs. For example, credit card transactions normally incur costs ranging from 1.5% to 3%, and debit card transactions may incur fees ranging from $0.20 to $1.00 per transaction. Mobile wallets frequently provide fee-free transactions for customers, while businesses may be charged fees for accepting such payments. Established players dominate the market. However, the rise of fintech entrepreneurs has resulted in novel payment methods and increased competition. These new entrants bring new viewpoints and technology, challenging incumbent companies and spurring further growth in the business.

In 2021, the COVID-19 pandemic led to a major increase in contactless payment adoption. Concerns about virus transmission prompted consumers and businesses to prioritise contactless transactions. This trend was especially noticeable in industries like retail and restaurants, where reducing physical touch became critical. Merchants quickly adopted this trend, creating contactless payment terminals and accepting mobile wallets to meet client demands. As a result, contactless payments became the favoured technique, providing both ease and security in the face of the pandemic. The year 2022 saw a significant increase in the usage of Buy Now, Pay Later (BNPL) services, particularly among young people. This alternate payment option, which allows consumers to make purchases and stretch payments over time without incurring interest, became popular due to its flexibility and accessibility. With millennials and Generation Z increasingly prioritising budgeting and financial management, BNPL services stood out as a practical method to manage spending while avoiding traditional credit card debt. As a result, many shops and e-commerce platforms have integrated BNPL alternatives into their checkout procedures, accelerating its adoption and influencing consumer buying patterns. In 2023, the Federal Reserve announced an increasing interest in central bank digital currencies (CBDCs). As the global landscape shifted toward digital finance, central banks realised the potential advantages of issuing digital currencies, such as increased efficiency, financial inclusion, and monetary policy efficacy. The Federal Reserve's examination of CBDCs was an important milestone in the continuing digital currency debate, showing a trend toward investigating novel monetary frameworks to address growing difficulties and opportunities in the digital age.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Digital Payment market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Offering
• Solutions
• Services

By Transaction type
• Domestic
• Cross Border

By Payment Type
• Cards
• ACH Transfer
• Digital Wallet
• Other Payment Modes

By Vertical
• BFSI
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail & E-commerce
• Transportation
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Digital Payment industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Digital Payment market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Offering
• Solutions
• Services

By Transaction type
• Domestic
• Cross Border

By Payment Type
• Cards
• ACH Transfer
• Digital Wallet
• Other Payment Modes

By Vertical
• BFSI
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail & E-commerce
• Transportation
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Digital Payment industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.