North America Digital Payment Market Report and Forecast 2024-2032

North America Digital Payment Market Outlook

The North America digital payment market size was approximately USD 33.36 billion in 2023. The market is assessed to grow at a CAGR of 16.3% between 2024 and 2032, reaching a value of USD 133.78 billion by 2032.

Key Takeaways

Digital payments refer to monetary transactions where the transfer of funds takes place via electronic devices in possession of both the payer and the payee. The electronic or digital devices that support these transactions, include smartphones, computer, laptops, and a credit or debit card, among others. To tackle illegal activities including money laundering and corruption, the adoption of cashless payment methods is set to become popular. This can lead to vast changes in the financial landscape of North America’s digital payment market.

The market is being driven by the increased safety and flexibility associated with digital payments. The global transition towards cashless economies is also driving people towards the adoption of digital payments. Digital payments are easy to track and trace, provide a seamless experience of shopping/bill payments, and are encrypted for large and small value transactions. This is expected to drive their popularity in North America over the forecast period.

Key Trends and Developments

Rising popularity of BNPL financing model; increase in usage of cryptocurrency; preference for contactless payments; and a tech savvy younger generation are the major trends shaping the market growth trajectory

North America Digital Payment Market Trends

The  growth in popularity of Buy Now Pay Later financing option is driven by its relatively easier credit terms as compared to credit cards. Consumers use it to finance high margin products, including laptops, fashionable clothes, and cosmetic products. Such innovations support the North America digital payment market development.

Moreover, inflation, currency devaluation, and political instability have challenged North American’s faith in traditional financial systems which is marking a shift towards block chain technology, including cryptocurrency. Improvements in user interface of cryptocurrency platforms have simplified trading, providing a safe storage space for people to manage their digital assets. This is expected to aid the North America digital payment market growth.

Market Segmentation

“North America Digital Payment Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Based on solution, the payment security and fraud management segment is expected to dominate the North America digital payment market

The payment security and fraud management segment is expected to lead the market. In 2020, the United States lost $4 billion to cybercrime because of vulnerabilities that remained unchecked in the existing payments security mechanism. The healthcare sector, in particular, reported high incidences of ransomware attacks.

In 2021, Canada lost $100 million to online fraud centering around investment and romance. Malicious attacks accounted for over 42% of data breaches which occurred in Canada. This is expected to enhance the adoption of strong payment security and fraud management software in North America digital payment market.

Small and medium enterprises are expected to boost their reliance on digital payments for internal operations and external dealings

Small and medium enterprises are expected to account for a major chunk of the North America digital payment market share. This is because digital transactions reduce paperwork and processing fees and facilitate faster reconciliation of bank account statements. It also enables businesses to leverage consumer’s digital footprint to personalise products and services and increase conversion rates. The development of digital fraud prevention tools and software has boosted the adoption of digital payment methods by small enterprises, improving the security of all online transactions and enhancing consumer confidence. Meanwhile, the reliance of large enterprises on digital payment systems and databases is expected to remain higher in the forecast period as well, as these solutions enable businesses to reduce the number of declined transactions caused by invalid card details.

Competitive Landscape

Collaborations among market players, banks, and the government are expected to be crucial in accelerating the transition towards a cashless economy and improving the accessibility, transparency, and security of digital transactions

Other notable players operating in the North America digital payment market include Apple Inc., PayPal Holdings Inc., Samsung Electronics Co. Ltd., Mastercard Inc., Aurus Inc., Adyen N.V., and ACI Worldwide, Inc., among others.

North America Digital Payment Market Analysis by Country

Depending upon their requirements, Canadians use a variety of digital payment options, aiding the North America digital payment market expansion. For instance, mobile payments can be utilised for point-of-sale purchases and person to person payments, while electronic fund transfers can be utilised for work payments.

More  than 50% Canadians prefer paying for their credit card bills, government taxes, and household rent in real time. This is expected to make the nation an important market for digital payments over the forecast period. Online transfers recorded a growth of 11% and 19% from 2021 to 2022 in terms of volume and value, respectively. The increased safety, convenience, and high speed associated with digital payments is leading to a surge in its adoption.

Key Highlights of the Report

North America Digital Payment Market Report Snapshots

North America Digital Payment Market Size

North America Digital Payment Market Trends

North America Digital Payment Market Regional Analysis

North America Digital Payment Companies