North America Online Payment Methods 2023
Digital wallets surge in popularity, capturing over 25% of North American online payment market in 2023: new yStats.com report
Amidst the dominance of card-based payment methods, digital wallets gain momentum as the most used online payment method across North America
Digital wallets, including PayPal, Apple Pay, and Google Pay, are steadily gaining acceptance among both buyers and sellers across North America. The yStats.com report reveals that digital wallets secured the fourth position in terms of frequently used online payment methods, with usage at least five times per month. This ranking places them just behind debit cards, cash, and credit cards, as of September 2022. Notably, nearly half of the surveyed respondents in the U.S. reported using at least one e-wallet or mobile payment app for online purchases as of July 2023. Furthermore, more than 25% of the surveyed respondents expressed that the convenience of digital wallets encouraged them to lean towards online purchases, based on data as of April 2023. In terms of the most commonly used digital wallets, PayPal maintained its dominant position across the region, followed by Apple Pay, Venmo, among others.
The U.S. economy displays heavy dependence on credit and debit cards as the most commonly used online payment methods
The well-established network of card providers within the U.S. has led to the continued growth in the adoption of credit and debit cards as the preferred online payment methods. As consumer expectations evolve towards more seamless payment options at checkout, card providers now offer contactless payment alternatives such as Buy Now, Pay Later (BNPL) and one-tap payments, ushering in a new era of innovation within the North American online payment landscape. Additionally, buyers are actively experimenting with new forms of payment methods such as account-to-account app payments or machine-to-machine payments due to their speed, convenience, and control. However, credit and debit cards remained among the most commonly used payment methods for consumers in their most recent online purchases, based on data as of December 2022. These two payment methods are also anticipated to experience the highest increase in usage as of April 2023.
- 1. Key Takeaways
- Key Takeaways of North America Online Payment Methods, July 2023
- 2. Management Summary
- 3. Global
- Overview of Online Payment Market & Trends, July 2023 (1 of 2)
- Overview of Online Payment Market & Trends, July 2023 (2 of 2)
- Value of Contactless Payment Transactions, in USD trillion, 2022 & 2027f
- Value of Digital Wallet Transactions, in USD trillion, 2023e & 2028f
- Total Number of OEM Pay E-Commerce Transactions, in USD billion, Growth in Transactions, in %, & Average Transaction Volume Per OEM Pay User, in USD, 2026f
- Share of OEM Pay Transactions Coming via Purchases of Digital Goods, in %, 2026f
- Preferred Online Payment Methods For E-Commerce Purchases, in % of Adults, June 2022
- Top Reasons Because of Which Respondents Are Likely to Abandon Checkout, in % of Adults, June 2022
- Most Accessible vs Most Preferred Online Payment Method, in % of Adults, June 2022
- Share of Consumers Agreeing With the Following Statements Related to Security of Online Payment, in %, April 2023
- Top Consumer Expectations at Checkout When Making Online Purchases, incl. “Payment Methods”, in % of Respondents, October 2022
- Preferred Payment Method When Shopping Online, in % of Respondents, October 2022
- 4. North America
- 4.1. Regional
- Online Payment Methods Overview and Trends, July 2023
- Share of Consumers Agreeing With the Following Statements Related to Digital and Mobile Wallets, in %, April 2023
- Share of Payment Methods Used at Least 5 Times Per Month, in % of Consumers, September 2022
- Breakdown of Primary Payment Methods For Online and In-Person Purchase of Large Products And Services, in % of Respondents, September 2022
- Breakdown of Primary Payment Methods For Online and In-Person Purchases of Small Items, in % of Respondents, September 2022
- 4.2. USA
- Breakdown of Payment Methods Which Consumers Used For Their Most Recent Online Retail Purchase, in % of Consumers, December 2022
- Share of Payment Methods Used When Paying For Online Purchases, in % of Respondents, April 2022
- Share of Respondents Agreeing With Following Statements Related to Security of Online Payments, in %, April 2022
- Share of Consumers Who Adopted Select New Payment Methods in the Past Year, in %, May 2022
- Share of Respondents Who Use Two or More Forms of Digital Payments, in %, 2021 & August 2022
- Breakdown of Respondents Likely to Use Apple Pay Later Over Other BNPL Services, in %, March 2023
- Breakdown of Respondents Likely to Use Apple Pay Later Over Other BNPL Services, by Age Groups, in %, March 2023
- Breakdown of Payment Methods Most Commonly Used For Purchases, in % of Population, 2022 & 2023e
- Share of Respondents Who Use at Least One E-Wallet or Mobile Payment App For Online vs In-Store Purchases, in %, July 2023
- Breakdown of Mobile Payment Apps or E-Wallets Most Commonly Used For Online or In-Store Purchases, in %, July 2023
- Breakdown of Main Reasons Among Respondents For Not Using Mobile Payment Solutions More Often, in % of Respondents, July 2023
- Share of Consumers Who Anticipate Increasing or Decreasing Their Use of Select Payment Method For Online Purchases in the Next 12 Months, in %, April 2023
- Share of Respondents Identifying Top Features That Would Make Them More Comfortable When Making Online Purchases, in %, April 2023
- Proximity Mobile Payment Transaction Value, in USD billion, and Year-on-Year Change, in %, 2020-2027f
- Mobile Peer-to-Peer Payment Users, in millions, and Penetration Rate, in % of Smartphone Users, 2020-2027f
- Share of Adults Who Used a Digital Wallet at Least Once in the Past Month, in %, February 2023
- Breakdown of Payment Instruments Used For All Payments, by Age, in % of Respondents, October 2022
- BNPL Users, in millions, and Penetration Rate, in % of Internet Users, 2021-2026f
- Share of Consumers Who Have Already Used BNPL Services, in %, March 2022 & March 2023
- Share of Consumers That Used BNPL Services, by Age Group, in %, March 2023
- Most Used BNPL Providers, in % of Consumers, March 2023
- Share of Retailers Accepting International Payment Methods Such as Klarna and WeChat, in %, 2022 & 2023e
- Top Payment Apps Used For Making Payments, in % of Adults, July 2022
- Breakdown of Adults Using Payment Apps For Paying Stating They Have Confidence That Personal Information is Safe From Hackers, in%, July 2022
- Share of Consumers That Prefer to Shop at Merchants That Accept Cryptocurrency, by Generation in %, March 2022
- Share of Consumers Who Are Very or Extremely Interested in Using Cryptocurrency When Making Purchases from Merchants Offering Discounts, in %, March 2022
- Reasons For Not Using Cryptocurrency, in % of Respondents, October 2022
- Top Changes in Payment Habits When Making Purchases, incl. “Cryptocurrencies”, in % of Respondents, April 2022
- 4.3. Canada
- Share of Food & Retail Transaction Volume, by Payment Type, in %, 2022e-2024f
- Factors That Influence Retailer Selection When Buying Online, incl. “Payments”, in % of Online Shoppers, May 2022
- Payment Methods Used in Past For Online Purchases, in % of Respondents, April 2022
- Share of Consumers Who Use Prepaid Cards For Online Purchases, in %, April 2023
- Reasons for Using Prepaid Cards For Making Online Payments, in % of Respondents, April 2023
- Share of Citizens Who Are Worried About Using Their Credit Card Online, in %, April 2023
- Top Alternative Payment Methods Used When Making Online Payments, in % of Respondents, April 2023
- Satisfaction of Payment Methods Used For Making Online Payments, in % of Respondents, April 2023
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