Market Trends of United States Payments Industry
This section covers the major market trends shaping the US Payments Market according to our research experts:
Retail businesses gaining more significant payment solutions
- The payment market is changing with consumer behavior. Cashless economies, mobile banking, instant payments, digital commerce, and increasing regulatory influence are some trends affecting the payments market. Contactless payments also simplify the checkout process and are more convenient for consumers who benefit from shorter cues, no cash hassles, and faster cues.
- E-commerce sales in the country are also increasing with the improvement of the digital payment experience. This increase further reflects consumers' increasing comfort with online shopping, along with the increasing use of mobile and hand-held devices.
- Moreover, Google has pushed the UPI model of digital payments for the US Fed. Infibeam Avenues Ltd, digital payment solutions and enterprise software platform provider, announced that it had made inroads into the United States, the world's second-largest digital payments market by revenue.
- Also, in February 2022, Apple announced plans to introduce Tap to Pay on iPhone. The new capability intends to empower millions of merchants across the US, from small businesses to large retailers, to use their iPhone seamlessly and securely to accept Apple Pay, contactless credit and debit cards, and other digital wallet payments through a simple tap to their iPhone with no additional hardware or payment terminal.
- In addition, Taco Bell, Target, HyVee Midwestern Supermarket, Speedway Convenience Store, and Jack in the Box have all started supporting Apple Pay, a contactless payment system that's easy and secure to use on the Apple Watch and iPhone. With the addition of these major retailers, 74 of the top 100 retailers in the United States will have 65% of all retailers in the United States supporting Apple Pay.
Understand The Key Trends Shaping This Market
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High proliferation of smartphones and e-commerce driving the market
- The smartphone industry's growth can be attributed to the increasing popularity of several operating systems, namely Android and iOS. Due to the high prevalence of Android, several smartphone manufacturers are adopting it as their operating system. Thus, the increasing demand for and the launch of various Android-based smartphones are expected to drive the growth of the studied market.
- According to Ericsson, smartphone subscriptions worldwide surpass six billion and are expected to grow by several hundred million in the next few years. The United States, along with China and India, has the highest number of smartphone users. By 2026, smartphone subscriptions are expected to increase to 7516 million.
- Also, according to GSMA, in North America, the number of smartphone subscribers is expected to reach 328 million by the year 2025. Moreover, by 2025, the region may witness an increase in the penetration rates of mobile subscribers (86%) and the Internet (80%).
- Moreover, e-commerce platforms can accept various payment methods, making it easier for more users to access the business, including major credit cards, gift cards, etc. To cover online payment processing fees, e-commerce platforms such as Amazon, eBay, and Shopify often charge a monthly fee in addition to transaction fees.
- Further, convenient and up-to-date payment options play an important role in this streamlined online shopping experience in the country. As a result, e-commerce payment trends in 2022 reflect a better customer checkout experience and increased demand for secure payment options.
