United States Mobile Payment Market

Market Overview:

The United States mobile payment market size reached US$ 487.5 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 1,919.2 Billion by 2028, exhibiting a growth rate (CAGR) of 25.38% during 2023-2028. The proliferation of smartphones and the widespread adoption of mobile devices, the increasing trend toward contactless payments, the promotion of secure and efficient digital transactions and rising government initiatives and regulatory support are among the key factors driving the market growth.

Mobile payment refers to the digital transaction method that enables individuals to make financial transactions using their smartphones or other mobile devices. This technology has revolutionized the way people conduct payments, offering convenience, speed, and security. By utilizing various technologies, including near-field communication (NFC), QR codes, or mobile apps, users can effortlessly transfer funds, make purchases, and settle bills directly from their mobile devices, eliminating the need for physical cash or traditional payment methods. They allow individuals to link their bank accounts, credit cards, or digital wallets to their mobile devices, facilitating seamless transactions in various scenarios, such as retail purchases, online shopping, peer-to-peer transfers, and even public transportation fare payment.

The United States mobile payment market is driven by the proliferation of smartphones and the widespread adoption of mobile devices across the nation. With a large portion of the population purchasing smartphones, there is a growing familiarity and comfort with using these devices for a range of activities, including financial transactions. Furthermore, the increasing trend toward contactless payments has greatly impacted the mobile payment landscape. As concerns about hygiene and convenience mount, consumers are seeking safer and more seamless ways to conduct transactions. Mobile payment platforms offer a compelling solution, allowing users to make secure payments by simply tapping their phones on contactless-enabled terminals. This aligns well with the preferences of modern consumers who value speed, efficiency, and reduced physical contact in their financial interactions. Government initiatives and regulatory support have further catalyzed the growth of mobile payments in the US. The promotion of secure and efficient digital transactions, along with policies that encourage the adoption of modern payment technologies, has created an environment conducive to the expansion of mobile payments.

United States Mobile Payment Market Trends/Drivers:

Convenience and Accessibility

With the widespread penetration of smartphones and the increasing availability of internet connectivity, individuals are no longer confined to physical locations to conduct financial transactions. Mobile payments allow users to make purchases, transfer funds, and settle bills at any time and from anywhere, reducing the need to carry cash or visit brick-and-mortar establishments. Mobile payment apps and platforms also enable users to store multiple payment methods, such as credit cards, debit cards, and digital wallets, in a single application. This consolidation streamlines the payment process and eliminates the hassle of carrying multiple physical cards. Also, the ease of initiating transactions through a few taps on a smartphone screen has greatly contributed to the adoption of mobile payments across demographics, fostering a cashless culture and reshaping traditional payment behaviors.

Rising E-commerce and Contactless Transactions

As online shopping continues to thrive, consumers seek seamless and secure payment options that integrate seamlessly with digital shopping experiences. Mobile payment platforms offer a convenient solution by allowing users to store payment credentials and make swift transactions without the need to manually enter payment details for each purchase. Additionally, the global shift towards contactless payments, driven by hygiene concerns and the advancement of NFC technology, has further accelerated the adoption of mobile payments. Consumers can make payments by simply tapping their smartphones on point-of-sale terminals, eliminating the need for physical contact with payment devices. This trend is particularly evident in sectors, including retail, dining, and public transportation, where contactless payments have become the preferred method.

United States Mobile Payment Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the United States mobile payment market report, along with forecasts at the country level from 2023-2028. Our report has categorized the market based on mode of transaction and application.

Breakup by Mode of Transaction:

• WAP
• NFC
• SMS
• USSD
• Others
   

WAP holds the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the mode of transaction. This includes WAP, NFC, SMS, USSD, and others. According to the report, WAP represented the largest segment.

WAP is a technology that enables mobile devices to access the internet and interact with web services through wireless networks. This mode of transaction has gained prominence due to its widespread compatibility across a multitude of mobile devices, making it accessible to a diverse user base. Through WAP-enabled devices, users can access online platforms, websites, and applications that offer payment capabilities, facilitating seamless transactions directly from their mobile phones. Its ubiquity allows it to transcend device limitations and operating systems, making it a convenient option for users across various socioeconomic backgrounds. This inclusivity has played a crucial role in driving adoption, as it ensures that a broader spectrum of consumers can engage in mobile payments without being restricted by the specific technology they possess. Moreover, WAP transactions are relatively easy to initiate. By simply accessing a WAP-enabled webpage or app, users can follow intuitive prompts to complete transactions swiftly and securely.

Breakup by Application:

• Entertainment
• Energy and Utilities
• Healthcare
• Retail
• Hospitality and Transportation
• Others
   

Retail holds the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the application. This includes entertainment, energy and utilities, healthcare, retail, hospitality and transportation, and others. According to the report, retail represented the largest segment.

The integration of mobile payment solutions within the retail industry has transformed the way consumers make purchases, offering unprecedented convenience, speed, and a heightened overall shopping experience. The sheer volume of retail transactions conducted daily creates a massive potential market for mobile payment adoption. Consumer’s desire for streamlined checkout processes and seamless payment experiences aligns well with the capabilities of mobile payment apps and platforms. Additionally, mobile payments have revolutionized the traditional retail landscape by allowing customers to complete transactions using their smartphones or mobile devices, eliminating the need for physical cash or cards. Furthermore, mobile payments offer a personalized and frictionless shopping journey. Retailers can integrate loyalty programs, discounts, and personalized offers directly into mobile payment apps, incentivizing customers to make purchases and fostering brand loyalty. The ability to store multiple payment methods and manage transactions within a single app simplifies the payment process for consumers, further enhancing their shopping experience.

Breakup by Region:

• Northeast
• Midwest
• South
• West
   

Midwest exhibits a clear dominance, accounting for the largest United States mobile payment market share

The report has also provided a comprehensive analysis of all the major regional markets, which include the Northeast, Midwest, South, and West. According to the report, Midwest accounted for the largest market share.

Midwest region boasts a robust and varied economy, with a substantial retail presence and the expanding tech sector. This economic diversity provides a fertile ground for the proliferation of mobile payment solutions, as businesses and consumers alike seek streamlined, efficient, and secure methods of financial transactions. Furthermore, the Midwest's strategic location as a crossroads of major transportation routes, along with its dense urban centers and thriving suburban communities, has contributed to the increased uptake of mobile payments. These attributes have led to a high degree of connectivity and accessibility, making it convenient for individuals to embrace mobile payment technologies for everyday transactions, from shopping to dining to public transportation. Additionally, the Midwest's well-established banking and financial infrastructure has played a pivotal role in fostering the growth of mobile payments. The presence of established financial institutions and a receptive customer base has facilitated the integration of mobile payment apps and platforms into the lives of consumers.

Competitive Landscape:

Companies are offering users the ability to securely store payment information and make contactless transactions using their smartphones. These companies continue to enhance their platforms with features such as integration with rewards programs, transit systems, and peer-to-peer payment options. Moroever, traditional banks and financial institutions are actively developing and promoting their mobile banking apps and payment solutions. They focus on providing customers with user-friendly interfaces for managing accounts, transferring funds, and making payments. Institutions, such as JPMorgan Chase, Bank of America, and Wells Fargo are investing in advanced security measures to ensure the protection of sensitive financial data. Furthermore, several leading players are integrating mobile payment solutions into their operations to enhance the customer experience. Walmart's Walmart Pay and the Starbucks mobile app are prime examples of how retailers are leveraging mobile payments to streamline transactions and offer personalized rewards and incentives to customers.

The competitive landscape of the market has been studied in the report with the detailed profiles of the key players operating in the market.

United States Mobile Payment Market Report Scope:

Key Questions Answered in This Report:

• How has the United States mobile payment market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the United States mobile payment market?
• What is the impact of each driver, restraint, and opportunity on the United States mobile payment market?
• What is the breakup of the market based on the mode of transaction?
• Which is the most attractive mode of transaction in the United States mobile payment market?
• What is the breakup of the market based on application?
• Which is the most attractive application in the United States mobile payment market?
• What is the breakup of the market based on imports and domestic manufacturing?
• What is the competitive structure of the United States mobile payment market?
• Who are the key players/companies in the United States mobile payment market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States mobile payment market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the United States mobile payment market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States mobile payment industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.