Digital Wallets Nudging Traditional Cards as North Americans Embrace New Payment Methods

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Nov 07, 2023, 11:45 ET

DUBLIN, Nov. 7, 2023 /PRNewswire/ -- The "North America Online Payment Methods 2023" report has been added to ResearchAndMarkets.com's offering.

In a digital age dominated by card-based payment methods, digital wallets are rapidly gaining momentum as the preferred online payment method across North America. According to a recent report, digital wallets, including PayPal, Apple Pay, and Google Pay, have secured the fourth position in terms of frequently used online payment methods, with usage occurring at least five times per month. This ranking places digital wallets just behind debit cards, cash, and credit cards, as of September 2022.

Key Findings:

Digital Wallet Popularity: Nearly half of the surveyed respondents in the U.S. reported using at least one e-wallet or mobile payment app for online purchases as of July 2023.
Convenience Matters: More than 25% of the surveyed respondents expressed that the convenience of digital wallets encouraged them to lean towards online purchases, based on data as of April 2023.
Dominant Players: In terms of the most commonly used digital wallets, PayPal maintained its dominant position across the region, followed by Apple Pay, Venmo, among others.

While digital wallets are gaining traction, the North American market still heavily relies on credit and debit cards as the most commonly used online payment methods. The well-established network of card providers within the U.S. has led to continued growth in their adoption. These card providers now offer innovative contactless payment alternatives such as Buy Now, Pay Later (BNPL) and one-tap payments, aligning with evolving consumer expectations for seamless payment options at checkout.

Emerging Trends:

Experimentation with New Payment Methods: Buyers are actively experimenting with new forms of payment methods, including account-to-account app payments and machine-to-machine payments, due to their speed, convenience, and control.
Anticipated Growth: Credit and debit cards are expected to experience the highest increase in usage as of April 2023.

Key Questions Answered:
1. What is the forecasted value of digital wallet transactions globally as of 2028?
2. What is the forecasted value of proximity mobile payment transactions in the U.S. by 2027?
3. Which were the most used BNPL services for online purchases in the U.S. as of March 2023?
4. What is the forecasted share of credit cards in the food and retail transaction volume in Canada by 2024?

Key Topics Covered:

1. Key Takeaways

Key Takeaways of North America Online Payment Methods, July 2023

2. Management Summary

3. Global

Overview of Online Payment Market & Trends, July 2023 (1 of 2)
Overview of Online Payment Market & Trends, July 2023 (2 of 2)
Value of Contactless Payment Transactions, in USD trillion, 2022 & 2027f
Value of Digital Wallet Transactions, in USD trillion, 2023e & 2028f
Total Number of OEM Pay E-Commerce Transactions, in USD billion, Growth in Transactions, in %, & Average Transaction Volume Per OEM Pay User, in USD, 2026f
Share of OEM Pay Transactions Coming via Purchases of Digital Goods, in %, 2026f
Preferred Online Payment Methods For E-Commerce Purchases, in % of Adults, June 2022
Top Reasons Because of Which Respondents Are Likely to Abandon Checkout, in % of Adults, June 2022
Most Accessible vs Most Preferred Online Payment Method, in % of Adults, June 2022
Share of Consumers Agreeing With the Following Statements Related to Security of Online Payment, in %, April 2023
Top Consumer Expectations at Checkout When Making Online Purchases, incl. "Payment Methods", in % of Respondents, October 2022
Preferred Payment Method When Shopping Online, in % of Respondents, October 2022

4. North America

A selection of companies mentioned in this report includes

Afterpay
AliPay
Apple
Capital One
Citi
Goldman Sachs
Google
HSBC
Klarna
Mastercard
PayPal
Samsung
Square Cash
Venmo
WeChat
Zelle

For more information about this report visit https://www.researchandmarkets.com/r/15duz

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SOURCE Research and Markets