United States Payments Market Size (2024 - 2029)

US Payment Market Analysis

The development of the United States payment market was influenced by various different factors, including the rise of e-commerce, inclination towards online payments, and other factors. Many financial intermediaries offer payment and clearing services. Private payment systems include local interbank associations cashing member checks and operating automated teller machines (ATMs) and POS networks to nationwide credit and debit card networks. The size and complexity of US financial markets have led to significant interdependence of payments and settlements. The market is expected to grow at a CAGR of 23.5% during the forecast period (2022 - 2027).

• The US payment system connects different financial institutions, households, and businesses. Most payments in the United States rely on interbank payment services such as the ACH network and wire transfer systems to transfer money from one bank's sender's account to another bank's recipient's account. Therefore, interbank payment services are essential to the functioning and stability of the financial system and the economy in general.
• Recent improvements to the United States payment system have focused on making payments faster, cheaper, more convenient, and more accessible. "Instant" payments are a particularly active private and public innovation area. The Federal Reserve is also scheduled to launch in 2023, building a new interbank payment service, FedNow Service, for instant payments. These instant payment services will allow commercial banks to provide households and businesses with 24/7 payment services, giving recipients quick access to the funds transferred.
• The United States e-commerce market is noteworthy for its high level of adoption, with 78% of US citizens already shopping online. The dominance of domestic online giants such as Amazon, eBay, and Apple are the country's three significant merchants. Amazon alone accounts for nearly 50% of all e-commerce sales in the United States. Further, other major domestic retail brands are investing heavily in digital products.
• Moreover, existing payment systems are generally effective and efficient but have specific challenges. In particular, quite a few Americans currently do not have access to digital banking and payment services. In addition, some payments-especially cross-border payments, will continue to remain slow and costly.
• Due to the outbreak of coronavirus, the country witnessed a lockdown that compelled people to switch to online shopping and online payments. This has significantly boosted the growth of the United States Payments market.

US Payment Industry Segmentation

The US payments market includes various types of payments, including point-of-sale, e-commerce, card payments, and contactless payments. E-commerce payments include online purchases of goods and services. Shop on e-commerce sites and book travel and accommodation online. For POS, all transactions made on physical sales are within the market range of credit or debit card payments. This includes all face-to-face transactions, not just traditional in-store transactions, regardless of location. In both cases, cash payments are also an option for e-commerce sales.