US Fintech Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 11.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Fintech Market Analysis
The United States Fintech market reached a size of USD 4 trillion in the current year and registered a CAGR of 11% over the period of the forecast.
Financial technology, also known as "fintech," is a type of technology and innovation that aims to compete with traditional financial methods in the provision of financial services. AI, blockchain, cloud computing, and big data are considered the ABCs of fintech. The fintech industry is an evolving industry that uses technology to improve activities in finance.
According to research conducted in the US fintech market, venture capital investment is increasing year after year, but investors are becoming more cautious as the industry matures. In the previous year, there were 8775 fintech start-ups in America. Digital payments are the leading fintech segment in the United States, with a market value of more than $1.2 trillion. 60% of credit unions and 49% of banks in the U.S. believe that fintech partnerships are crucial. By the forecasted period, the U.S. will account for more than 62% of the global fintech transaction value.
The United States' customer fintech implementation is at 46%. The customer fintech implementation rate for global money transfers and payments is 75%. 75% of global consumers have used at least one fintech service to pay online or using a mobile application. 70% of U.S. customers say that mobile banking will represent the future. There were 54 million P2P (peer-to-peer) lending users in the United States six years ago, and it was likely to more than double to 126 million in the current year.
US Fintech Market Trends
Growth of the E- Commerce Industry is Propelling the Fintech Market
The United States continues to dominate the global E-commerce landscape due to its long-standing strengths in financial services, ICT, telecoms, and transportation, in addition to the large, diverse, and dynamic nature of the US economy.
In addition to the development of the e-commerce industry, the fintech market in the United States also enjoys significant growth prospects. Financial technology constantly supports and enhances online payment systems that ensure higher levels of security. Consumers who are more digitally aware and active are becoming more willing to embrace fintech in their everyday lives.
The number of people using online mobile phone payments and digital-only banks has increased dramatically; according to one estimate, the total transaction value in the digital payment market will be US$ 940 billion in the previous year. Many fintech companies, such as PayPal, Stripe, TransferWise, Venmo, etc., offer digital payment services both to businesses and customers. As more and more Americans depend on e-commerce platforms to acquire daily-use products, especially after the COVID-19 pandemic, the digitization of their daily lives contributed to the growth of the fintech market.
Digital Payments Segment Boosting Growth of the Market
In 2022, the market's leading segment was digital payments, with a total transaction value of USD 1,801,103 million. The standard transaction value per user in the digital investment segment was projected to amount to USD 48,915 in 2022. The NEO banking segment is likely to show a revenue growth of 36% in 2023. In the digital payments segment, the number of users is estimated to reach 307 million by 2026.
The U.S. prefers credit card and mobile wallet payments over other payment options. This is largely due to the user experience and popularity of mobile payment apps like PayPal in the U.S.
USA Cards Online Payment methods have been the most popular payment methods in recent years and have been used for every e-commerce transaction since 2020. It can be seen that online payments have been successful because people have been used to the payment method for a long time.
The penetration of credit and debit cards in the United States is one of the highest in the world. The ubiquity of debit and credit cards has made it easier for people to use digital wallets with their smartphones in the United States. Cards have the potential to expand the benefits of online payments by seamlessly incorporating personalized financing offers as well as loyalty programs.
In addition, consumers in the United States are embracing digital wallet payments, with more than half of merchants expected to accept digital wallets within the next five years, including leading digital wallet providers such as Apple Pay and PayPal, as well as Google Pay.
US Fintech Industry Overview
The US fintech market is consolidated and is led by various strong players employing innovations and partnership strategies. The report also includes major international players operating in the US fintech market.
While the US fintech landscape and regulations are emerging, the increase in new fintech start-ups and investments in the sector shows no immediate signs of slowing. Many players, including Chime, Stripe, iTrustCapital, and Check, are leading the US fintech market to new heights. The market will likely expand at a high rate throughout the forecast period.
US Fintech Market Leaders
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Stripe
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Chime
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Klarna
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iTrustCapital
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Robinhood
*Disclaimer: Major Players sorted in no particular order
US Fintech Market News
- January 2022: iTrustCapital established its new corporate headquarters in Irvine with funding of USD 125 million. The news was released two months after the company received a USD 125 million Series A growth equity investment from Left Lane Capital of New York City. The money will be used to enhance the company's offerings, grow the customer support and development teams, investigate possible strategic partnerships, and introduce new marketing avenues.
- Febuary 2022: In a statement, Fireblocks stated that it would spend an estimated USD 100 million for a cryptocurrency payment network. Plans to allow acquirers and payment service providers (PSPs) to accept cryptocurrency payments and make payouts in digital currencies are blocked by fire. Less than three weeks after the business disclosed it had raised USD 550 million in Series E funding, Fireblocks reportedly made its first purchase.
US Fintech Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porters' Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on impact of technology and innovation in Operation in Fintech Market
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Service Proposition
5.1.1 Digital Payments
5.1.1.1 Mobile POS Payments
5.1.1.2 Digital Remittance
5.1.1.3 Digital Commerce
5.1.2 Digital Investments
5.1.2.1 Neo-brokers
5.1.2.2 Robo-Advisors
5.1.3 Alternative Lending
5.1.4 Alternative Financing
5.1.4.1 Crowd Investing
5.1.4.2 Crowd Funding
5.1.5 Neo-banking
5.1.6 Online Insurance and insurance Marketplaces
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration & Overview
6.2 Company Profiles
6.2.1 Stripe
6.2.2 Klarna
6.2.3 Kraken
6.2.4 Plaid
6.2.5 Robinhood
6.2.6 Brex
6.2.7 Chime
6.2.8 NYDIG
6.2.9 VISA
6.2.10 iTrustCapital*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
US Fintech Industry Segmentation
Fintech (financial technology), is a term used to describe a range of products and services that use technology to enhance and automate traditional financial operations and processes. Examples of Fintech products and services include online banking services, mobile payments, P2P lending, digital wallets and financial management tools.
Sales of platform- and technology-based financial services, along with related products, make up the FinTech (Financial Technologies) market. FinTech refers to the application of technology and innovation to the delivery of financial services via web-based platforms. The scope of the report comprises a complete background analysis of the US fintech industry, including a valuation of emerging trends by segments, significant changes in market dynamics, market overview, market size approximation for key segments, and key company profiles also covered in the report.
The United States Fintech Market is Segmented by Service Proposition (Digital Payments (Mobile POS Payments, Digital Remittance, and Digital Commerce), Digital Investments (Neo-Brokers and Robo-Advisors), Alternative Lending, Alternative Funding (Crowd Investing and Crowd Funding), Neo-banking, and Online insurance and insurance marketplaces. The report offers Market size and forecasts for United States Fintech Market in value (USD Million) for all the above segments.
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| Alternative Lending | |||||
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| Neo-banking | |||||
| Online Insurance and insurance Marketplaces |
US Fintech Market Research FAQs
What is the current United States Fintech Market size?
The United States Fintech Market is projected to register a CAGR of 11% during the forecast period (2024-2029)
Who are the key players in United States Fintech Market?
Stripe, Chime, Klarna, iTrustCapital and Robinhood are the major companies operating in the United States Fintech Market.
What years does this United States Fintech Market cover?
The report covers the United States Fintech Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United States Fintech Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Fintech Industry Report
Statistics for the 2024 United States Fintech market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States Fintech analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
