United States Mobile Payments Market Size (2024 - 2029)

The United States mobile payments market is experiencing significant growth, driven by the increasing prevalence of mobile devices, open banking, and digital currency. The shift towards digital payment methods, accelerated by the need for contactless solutions during the COVID-19 pandemic, has further propelled the adoption of mobile payments. The widespread use of smartphones and the development of payment apps have facilitated seamless transactions for various needs, enhancing the market's expansion. Technologies such as near-field communication (NFC) and tokenization are contributing to the security and efficiency of mobile payments, making them a preferred choice for consumers.

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Market Size of United States Mobile Payments Industry

United States Mobile Payments Market Growth
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 13.40 %
Market Concentration Medium

Major Players

United States Mobile Payments Market Major Players

*Disclaimer: Major Players sorted in no particular order

US Mobile Payments Market Analysis

The United States mobile payments market is expected to register a CAGR of 13.4% during the period 2022-2027. Some of the primary factors driving the growth of this market in the region are the rise of the prevalence of mobile devices, open banking, and digital currency. Some changes in digital adoption in 2020 and 2021 appear to be linked to the COVID-19 epidemic and may be temporary.

  • In recent times, there has been a tremendous change in the payment processing environment in the United States. The use of digital payment methods for physical payments due to the increased need for contactless payments has fueled the adoption of mobile payments.
  • An increase in the adoption of smartphones in the country has enabled the development and usage of mobile apps for various needs. The development of payment apps with technologies such as mobile payments provided users with an easy and seamless way to make payments for online and in-store purchases, bill payments, money transfers, and many more.
  • Further, Mobile payments offer an easy and secure way to make payments for purchases. Mobile wallets can be used by individuals to store credit and debit card information on their smartphones using tokenization. This replaces card numbers rendering the information to be useless to hackers.
  • Usage of technologies such as near-field communication (NFC) technologies and mobile payment solutions can provide a more secure and faster payment service compared to traditional payment methods as it enables individuals to hold their phone near Point of sale device for processing the payment.
  • Due to the outbreak of the Covid-19 pandemic, the demand for contactless payments in retail shops such as grocery stores and restaurants has increased to curb the virus's spread. Contactless payment solutions offered by mobile wallets provide a safe alternative to handling cash and traditional plastic credit cards as there is no touch included in the payment process.

US Mobile Payments Industry Segmentation

Mobile payment is a money payment made for a product or service through a portable electronic device such as a tablet or cell phone. The study tracks the application of mobile payment based on transaction type, which is Proximity and Remote payment. The study tracks key market metrics, underlying growth influencers, and significant industry vendors, providing support for the United States mobile payments market estimates and growth rates throughout the anticipated period. The study looks at COVID-19's overall influence on the United States mobile payment ecosystem.

BY TYPE (Market share in percentage based on relative adoption)
Proximity
Remote
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United States Mobile Payments Market Size Summary

The United States mobile payments market is experiencing significant growth, driven by the increasing prevalence of mobile devices, open banking, and digital currency. The shift towards digital payment methods, accelerated by the COVID-19 pandemic, has led to a surge in the adoption of mobile payments, particularly for contactless transactions. The rise in smartphone usage has facilitated the development of mobile apps that offer seamless payment solutions for online and in-store purchases, bill payments, and money transfers. Technologies such as near-field communication (NFC) and tokenization have enhanced the security and efficiency of mobile payments, making them a preferred choice over traditional methods. The demand for contactless payments has been particularly strong in retail settings, where mobile wallets provide a safe alternative to cash and plastic cards.

Mobile wallets are gaining traction in the United States, with major players like Apple Pay, Amazon Pay, Google Pay, and PayPal leading the charge. These wallets are expected to surpass credit cards in transaction value, driven by their convenience and the growing penetration of contactless point-of-sale terminals. The adoption of mobile payments is further bolstered by the increasing number of millennials and high-income households, as well as the introduction of digital rewards programs that incentivize usage. As the market evolves, service providers are investing in advanced technologies such as artificial intelligence, machine learning, and biometric authorization to enhance security and performance. The competitive landscape is marked by continuous innovation and strategic partnerships among key players, aiming to capture a larger share of the burgeoning mobile payments market.

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United States Mobile Payments Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increase in smartphone penetration

      2. 1.1.2 Advancement in technology enabling convenient and secure payments

      3. 1.1.3 Increase in Real-Time Payments

    2. 1.2 Market Challenges

      1. 1.2.1 Data security risks

      2. 1.2.2 Well established credit and debit card system

    3. 1.3 Market Opportunities

      1. 1.3.1 Transformation to a Cashless Society

    4. 1.4 Key Regulations and Standards in the Mobile Payments Industry

    5. 1.5 Analysis of Business Models in the Industry

    6. 1.6 Analysis of the Increasing Market Penetration of Mobile Wallets

    7. 1.7 Analysis on Enabling Technologies (Coverage to include NFC, QR, etc.)

    8. 1.8 Commentary on the growth of Mobile Commerce and its influence on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 BY TYPE (Market share in percentage based on relative adoption)

      1. 2.1.1 Proximity

      2. 2.1.2 Remote

United States Mobile Payments Market Size FAQs

The United States Mobile Payments Market is projected to register a CAGR of 13.40% during the forecast period (2024-2029)

Paypal, Apple Pay, Chase Pay, Cash App and Google Pay are the major companies operating in the United States Mobile Payments Market.

United States Mobile Payments Report Snapshots

United States Mobile Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)