The North American digital wallet market was valued at US$55.065 billion in 2020.
The high penetration of smartphones and internet connectivity has significantly driven the adoption of digital wallets in North American countries in the past few years. The early adoption of new technologies and the presence of major market players in the region contribute substantially to the digital wallet market growth in North America. The high rate of digitalization of personal, professional, and business experiences is further bringing up digital wallets as a crucial alternative payment method for banks’ clients. Banks in countries like the United States and Canada are also partnering up with digital wallet service providers as a response to the changing consumer payment preferences, thus positively impacting the digital market growth. For example, Citi and PayPal expanded their partnership in December 2019 in the U.S. for Citi’s institutional clients so that they can make payments into customers’ PayPal digital wallets. In April 2018, Samsung Pay expanded its customer base in North America by joining the Royal Bank of North America (RBC) personal payment cards supported by the mobile payment system. Market players are also expanding their reach in the North American digital wallet market, thereby bolstering its overall regional market growth. For example, in 2017, Paytm launched its bill payment service in North America, available on both iOS and Android in the country. The rapidly growing e-commerce industry in North America also leads to a surge in the adoption of digital wallets across the region. This growth is further accelerated by rising investments by retailers in digital platforms to reach a vast majority of customers across this region, thereby driving the regional market growth.
The recent COVID-19 global pandemic outbreak has caused a sudden rise in the usage of various digital wallets in North American countries. Digital banks and e-wallets are experiencing an uptick in overall demand in the region as quarantine and social distancing measures rapidly turn digital transactions into a necessity. According to the latest survey report by the Electronic Transactions Association, more than 27 percent of small businesses in the U.S. have already reported a rise in contactless payment services, including Apple Pay. Retailers such as Burger King and Walmart are also encouraging the cashless and contactless payment trend to reduce the transmission of this virus.
The North American digital wallet market has been segmented based on the device and application. By device, the market has been segmented as PCs/laptops and smartphones. By application, the North American digital wallet market has been classified into money transfer, recharge, movie booking, food ordering, and others. By country, the North American digital wallet market has been segmented into the United States, Canada, and Mexico.
Key Developments in the Market:
COVID-19 has significantly impacted the digital wallet in North America. The increasing surge in active cases and spread of the infection caused many consumers to shift towards contactless digital wallet technology. Furthermore, the growing number of digital payments is further driving the penetration of digital wallets. E-payment systems or cashless payment systems have progressively emerged amid the epidemic as a payment system instrument.
SAMSUNG ELECTRONICS CO., LTD.
Amazon Payments, Inc.
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