The United States Digital Wallet market was valued at US$8,905.709 million in 2019. The early adoption of advanced technologies and the presence of major market players has significantly contributed to the market growth of digital wallets in this country. With 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 adoption of digital wallets in the country as consumers can easily play at online casinos that accept all major digital wallets such as Skrill and Neteller. Growing digitalization of personal, professional, and business experience is further bringing up digital wallets as an important alternative payment method for banks’ clients. In order to respond to changing consumer payment preferences, banks are also partnering with these service providers which is also positively impacting the overall market growth. In December 2019, Citi and PayPal expanded their partnership for Citi’s institutional clients so that they can make payments into customers’ PayPal digital wallets.
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 so as to curb the further spread of this virus.
The United States 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 United States digital wallet market has been classified into money transfer, recharge, movie booking, food ordering, and others.