The United States digital wallet market was valued at US$31.429 billion in 2020 and is projected to grow at a CAGR of 11.54% to reach US$67.520 billion in 2027.
The early adoption of advanced technologies and the presence of major market players have significantly contributed to the market growth of digital wallets in this country. The high usage of smartphones and penetration of fast internet connectivity are tremendously boosting the adoption of digital wallets in the U.S. People are increasingly leveraging the benefits of digital wallets, including portability, reliability, and faster transactions. Moreover, retailers are also getting more involved in providing unique payment facilities to their customers, thereby driving the market growth of digital wallets. The growing online gambling industry is also surging the demand for digital wallets. Consumers can easily play at online casinos that accept all major digital wallets, such as Skrill and Neteller. The growing digitalization of personal, professional, and business experience is further bringing up digital wallets as an important alternative payment method for banks’ clients. To respond to changing consumer payment preferences, banks are also partnering with these service providers, positively impacting the overall market growth. In December 2019, Citi and PayPal expanded their partnership for Citi’s institutional clients so that they could make payments into customers’ PayPal digital wallets.
The United States Digital wallet market has been segmented based on the device and application. The market has been segmented as PCs/laptops and smartphones by the device. By application, The United States digital wallet market has been classified into Money transfer, recharge, movie booking, food ordering, and others.
The coronavirus pandemic has resulted in a sudden rise in the usage of digital wallets in the U.S. 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 curb the further spread of this virus.
Covid-19 has altered how people consider their methods of payment. During the stay-at-home edicts in March, many businesses and consumers quickly adopted cashless transactions due to hygiene issues about delivering over cash or payment cards to a cashier and tapping keypads at supermarket checkouts. Online wallets became a great convenience as a result of the rise of online purchases. In the United States, consumers increasingly use contactless payment options to buy necessities such as groceries. According to CNBC, contactless payment options were used in approximately 85 percent of grocery store transactions.
Contactless payment transactions increased significantly in pharmacies by 39 percent, retailers by 38 percent, and restaurants by 36 percent as per the finicalholdings. The rising adoption and convince to use digital wallets are expected to boost the market over the forecasted period.
June 2022, New technology gives vendors more secure payment flexibility and an easy onramp to the Square ecosystem. Sellers can start testing the Square integration of Tap to Pay on apple devices via the Early Access Program. Square announced that it is collaborating with Apple to integrate Apple's contactless payment admittance capability, Tap to Pay on apple devices, into the Square Point of Sale app.
May 2022, Square has procured GoParrot, a restaurant-specific digital ordering and marketing framework. Through powerful omnichannel software, GoParrot facilitates restaurants to engage with consumers more easily and directly. GoParrot's product lines already incorporate with Square's ecosystem of solutions as a long-time Square partner.
December 2021, Facebook launched Novi, a digital wallet that will allow users to store cryptocurrencies.
December 2020, As part of a "strategic shift," Libra changed its name to Diem and relocated its operations from Switzerland to the United States.
Amazon Payments, Inc.
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