Market Trends of North America Mobile Payments Industry
This section covers the major market trends shaping the North America Mobile Payments Market according to our research experts:
The Rise of Contactless Payments in the U.S
- The expansion of the e-commerce industry is mainly responsible for the widespread adoption of mobile payment systems in North America. Near Field Communication (NFC) is a payment system now integrated into mobile phones to create a digital wallet. Furthermore, mobile payment is a better option than other payment methods. The entry of tech titans such as Apple and Google has created enormous opportunities for the global mobile payments market to expand.
- E-commerce opportunities are likely to increase online retail sales. Furthermore, retailers can access customer data such as preferences, regular shopping intervals, top-selling products, and more with the help of mobile payments. Retailers are using the insights to offer good customer service. For example, Starbucks developed its mobile payment app for customers to select the menu by directly paying from their bank account. It also provides various discount codes, loyalty points, and services to increase customer engagement. Thus, the retail industry is creating immense opportunities for this market.
- With nearly 26.8 million average monthly visits in 2021, digital products were the e-commerce website category with the highest monthly traffic in the United States. With almost 20 million monthly average visits, consumer electronics was the second most visited site category.
- According to Pulse, an electronic funds transfer company and Discover Financial Services subsidiary that serves over 4,400 financial institutions nationwide. Apple's payments service in the United States accounted for 92 percent of all mobile wallet debit transactions. In 2020, Apple Pay dominated the mobile wallet space for debit transactions.
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Growing Internet Penetration In North America
- The increasing adoption of the 5G technology in the region's high-speed network has shifted the consumer focus towards online purchasing, payments, and many other financial operations. Moreover, the increasing number of banks that boost online transactions has contributed to the market's growth.
- According to the Ericson Mobility Report, North America will have the highest 5G penetration in 2027, at 90%. Customers in North America can easily find suitable 5G service offerings. FWA has become a fixed broadband option for consumers and small and medium-sized businesses. 400 million 5G subscriptions are expected by 2027, accounting for 90% of mobile subscriptions.
- The monthly mobile data usage per smartphone in North America will reach 52GB in 2027. A growing number of new 5G subscribers are being drawn in by unlimited data plans and improved 5G network coverage and capacity. North America is expected to have the highest 5G subscription penetration of any region by 2027, at 90%.
- According to the GSMA, 5G connections will account for 21 percent of all links worldwide by 2025. Most of these will be in North America, where 5G connections are expected to account for 51% of all contacts. With the raised emphasis on smartphone usage and huge internet penetration across several countries, demand for online banking is expected to rise and maintain its market dominance.
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