North America Payments Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 389.00 Billion |
| Market Size (2029) | USD 639.33 Billion |
| CAGR (2024 - 2029) | 10.45 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Payments Market Analysis
The North America Payments Market size is estimated at USD 389 billion in 2024, and is expected to reach USD 639.33 billion by 2029, growing at a CAGR of 10.45% during the forecast period (2024-2029).
In the United States, American Express is a significant credit card corporation. It is well-known for offering exceptional customer service as well as some of the greatest incentives. From ultra-elite corporate travel cards to daily rewards, American Express has a credit card to fit every cardholder. Credit card issuers (or providing banks) are the institutions (banks or credit unions) from whom credit cards are obtained. The largest banks in the United States are Chase and Citi, while the largest in Canada are TD and RBC. The issuing bank has the authority to set the interest rate, the limit, international fees, and so on.
- Using biometric authentication technologies in transactions is a major trend that is gaining traction in the payments industry. Biometric authentication is an essential payment technique that combines and provides accuracy, effectiveness, and security in a single package. For instance, in December 2023, FortressPay announced the launch of an enterprise-ready biometric payment platform. With its new Payment Identity platform, FortressPay aims to provide a frictionless customer experience while eliminating payment fraud.
- The payments industry is significantly shifting in both the consumer and business sectors. The rise of real-time payments, more access to and use of customer data, increasing consumer choice among digital and conventional payment methods, and growing rivalry and collaboration between internet behemoths and traditional banks are all hot subjects. These new and ongoing trends are requiring firms to reassess their business strategies in order to foster innovation and client acceptability.
- Technical advancements in the North American digital payment sector are projected to generate attractive development prospects for the market. This platform allows you to divide payments for online purchases using a combination of debit and credit cards with no interest or additional fees. As a result, the platform is expected to assist users in reducing the cost load on individual cards, increasing financial privacy, and building credit ratings.
- The COVID-19 pandemic significantly impacted the payment industry in North America. Lockdowns and business closures prevented people from making in-person purchases and altered how they transacted before the outbreak. While overall spending fell due to concerns about the economy and personal finances, people spent more money online, hastening the transition from cash to digital payments. There appears to have been a significant increase in contactless payment solutions, such as cards, smartphones, and wearable devices.
North America Payments Market Trends
Increasing use of digital wallets payments
- The increasing use of digital wallet payments in North America reflects a significant shift in consumer behavior and the broader digital transformation of financial services. As technology continues shaping how people manage their finances, digital wallets have emerged as a convenient, secure, and versatile alternative to traditional payment methods.
- Also, the regulatory environment in North America has adapted to accommodate the rise of digital wallets, ensuring that these payment methods align with existing financial regulations. As governments recognize the importance of fostering innovation in financial services, regulatory frameworks have evolved to provide a supportive environment for the growth of digital payment technologies.
- Furthermore, the e-commerce platforms can accept various payment methods, making it easier for more users to access the business, such as major credit cards, gift cards, etc. E-commerce platforms such as Amazon, eBay, and Shopify frequently charge monthly and transaction fees to cover online payment processing fees.
- E-commerce sales in the United States are increasing as digital payment experiences improve. This rise reflects consumers' growing comfort with online shopping and their increased use of mobile and handheld devices.
- The buy-now-pay-later (BNPL) service is gaining popularity among North American consumers as an alternative payment solution. Consumers in the United States utilize BNPL for a variety of reasons, including purchasing items that would otherwise be beyond reach, avoiding interest on credit cards, and borrowing money without a credit check. Market participants are implementing various tactics to expand the adoption of BNPL. For example, in May 2023, Splitit announced its partnership with visa to offer merchants a buy now, pay later (BNPL) solution. Both the companies had signed an agreement in which Splitit’s installments-as-a-service offering is combined with Visa Instalments to form a BNPL solution that will be piloted in select markets during the second half of the year
United States to hold a majority market share
- Credit cards are the most commonly used payment method in the United States and Canada, both offline and online, with debit cards coming in second. With the enhancement of digital payment experiences, the country's e-commerce sales are expanding. This growth reflects customers' growing comfort with online buying and their increased usage of mobile and handheld devices.
- Additionally, the Federal Reserve has integrated the United States' ACH system into local settling systems in Canada, the United Kingdom, the Eurozone, Mexico, and Panama, allowing individuals and companies to move cash directly from U.S. bank accounts to bank accounts in other countries. Financial technology firms are rapidly venturing into cross-border payments, notably peer-to-peer payments. Financial technology firms, for example, are joining the remittance sector, allowing users to fund "mobile wallets" online using their bank accounts and debit or credit cards and sending money straight to overseas mobile wallets.
- Moreover, retail instant payment systems execute small-value interbank transfers such that money is available almost quickly, as contrast to the possibly multiday settlement wait for retail transfers on some traditional bank payment systems. Like other retail payment systems, immediate payment systems often employ bank deposit money but eventually settle in central bank reserve balances. include the Clearing House's RTP Network (RTP), which began in 2017, and the FedNow Service, which the Federal Reserve aims to implement in 2023.
- Due to the growth of the digital payment market, mobile commerce has also changed the way brick-and-mortar businesses operate, particularly in terms of accepting cashless payments. Apple Pay, Samsung Pay, and Google Pay, for example, are among the leading competitors competing with market leaders in their respective countries. With consistent increases in mobile payment in several countries, the North American digital payment market is expanding rapidly.
North America Payments Industry Overview
The North American Payments market is highly competitive, with key players such as Apple Pay, Samsung Pay, Amazon Pay, Google Pay, and many others in the region developing new e-commerce solutions for a wide range of end-user applications. Companies are also investing and forming partnerships in the continent to expand their businesses and provide e-commerce platforms to the country's people.
- June 2023 - Amazon Pay announced its partnership with BNPL outlet Affirm. With this partnership, Amazon Pay offers buy-now-pay-later (BNPL) services to small business owners using its online store.
- March 2023 - Apple Inc. introduced Apple Pay Later in the U.S. designed with users’ financial health, It also allows users to split purchases into four payments, spread over six weeks with no interest and no fees. Users can easily track, manage, and repay their Apple Pay later loans in one convenient location in Apple Wallet.
North America Payments Market Leaders
PayPal Holdings Inc.
MasterCard Incorporated (MasterCard)
Dwolla
Amazon.com Inc.
Visa Inc.
*Disclaimer: Major Players sorted in no particular order
North America Payments Market News
- August 2023 - PayPal announced the launch of stablecoin digital currency, which will be backed by US dollars and used for transactions on its global online payments platform. The stablecoin, known as PayPal USD, will be issued by Paxos Trust Co. and will be backed by US dollar deposits and short-term US Treasuries.
- September 2023 - PayPal introduces Web3 Payment On and Off Ramps. With this launch, the company will connect their customers' ability to buy and sell supported cryptocurrency in the United States to the PayPal On and Off Ramps. It will assist web3 merchants in expanding their user base by connecting them to PayPal's quick and seamless payment experience.
North America Payments Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness-Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Evolution of the payments landscape in North America
4.5 Key market trends pertaining to the growth of cashless transaction in North America
4.6 Impact of COVID-19 on the payments market in North America
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 High Proliferation of E-commerce, Including the Rise of M-commerce
5.1.2 Smartphone Growth and Electronic Initiatives in the payment market
5.1.3 Increase in Real-Time Payments
5.2 Market Challenges
5.2.1 Data security risks
5.3 Market Opportunities
5.3.1 Transformation to a Cashless Society
5.3.2 New players in the payment market may drive innovation leading to greater adoption.
5.4 Key Regulations and Standards in the Digital Payments Industry
5.5 Analysis of major case studies and use-cases
5.6 Analysis of key demographic trends and patterns related to payments industry in North America (Coverage to include Population, Internet Penetration, Banking Penetration/Unbanking Population, Age & Income etc.)
5.7 Analysis of the increasing emphasis on customer satisfaction and convergence of global trends in North America
5.8 Analysis of cash displacement and rise of contactless payment modes in North America
6. Market Segmentation
6.1 By Mode of Payment
6.1.1 Point of Sale
6.1.1.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
6.1.1.2 Digital Wallet (includes Mobile Wallets)
6.1.1.3 Cash
6.1.1.4 Others
6.1.2 Online Sale
6.1.2.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
6.1.2.2 Digital Wallet (includes Mobile Wallets)
6.1.2.3 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
6.2 By End-user Industry
6.2.1 Retail
6.2.2 Entertainment
6.2.3 Healthcare
6.2.4 Hospitality
6.2.5 Other End-user Industries
6.3 By Country
6.3.1 United States
6.3.2 Canada
7. Competitive Landscape
7.1 Company Profiles
7.1.1 PayPal Holdings Inc.
7.1.2 MasterCard Incorporated (MasterCard)
7.1.3 Dwolla
7.1.4 Amazon.com Inc.
7.1.5 Visa Inc.
7.1.6 Alipay.com Co. Ltd
7.1.7 Alphabet Inc. (Apple Pay)
7.1.8 Google Pay (Google LLC)
7.1.9 Beacon Payments LLC
7.1.10 Interac Corp.
- *List Not Exhaustive
8. Investment Analysis
9. Future Outlook of the Market
North America Payments Industry Segmentation
Payment instruments are mechanisms that allow monies in accounts at credit, payment, or similar organizations to be transferred to a payee in response to a payment order. Credit transfer, check payment, direct debit, and a cash deposit are the most common payment methods. Credit transfer is the payment technique of transferring credit from one bank to another. The North American payments market is segmented by mode of payment (point of sale (card payments, digital wallet, cash, others), online sale (card payments, digital wallet, others)), and end-user industries (retail, entertainment, healthcare, hospitality, others) and geography (U.S. and Canada).
The market scope excludes online purchases of motor vehicles, real estate, utility bill payments (such as water, heating, and electricity), mortgage payments, loans, credit card bills, or purchases of shares and bonds. As for Point-of-Sale, all transactions that occur at the physical point of sale are included in the market scope. It includes traditional in-store transactions and all face-to-face transactions regardless of the location of the transaction. Cash is also considered for both cases (cash-on-delivery for e-commerce sales).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
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North America Payments Market Research FAQs
How big is the North America Payments Market?
The North America Payments Market size is expected to reach USD 389.00 billion in 2024 and grow at a CAGR of 10.45% to reach USD 639.33 billion by 2029.
What is the current North America Payments Market size?
In 2024, the North America Payments Market size is expected to reach USD 389.00 billion.
Who are the key players in North America Payments Market?
PayPal Holdings Inc., MasterCard Incorporated (MasterCard), Dwolla, Amazon.com Inc. and Visa Inc. are the major companies operating in the North America Payments Market.
What years does this North America Payments Market cover, and what was the market size in 2023?
In 2023, the North America Payments Market size was estimated at USD 352.20 billion. The report covers the North America Payments Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Payments Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Payments Industry Report
Statistics for the 2024 North America Payments market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Payments 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.
