Market Trends of United States Fintech Industry
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.
