United States Mobile Payment Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

United States Mobile Payment Market Growth

Mobile payments refer to the payment or transfer of funds from person to person or businesses and merchants for products services or bills. The payment tools include mobile browsers and e- or virtual wallets, among others. The different types of mobile payments include proximity payments and remote payments.

The growing popularity of mobile wallets due to their easy usage and convenient and secure nature is supporting the United States mobile payment industry growth. The open mobile wallets offer flexibility by allowing users to store different payment methods that are not tied to a specific company.

United States Mobile Payment Market Analysis

The United States mobile payment market dynamics and trends are increasingly influenced by rising concerns about cleanliness and hygiene. This has heightened the demand for seamless and secure payment options like mobile payments. These solutions cater to many consumers who prefer less physical contact, faster transactions, and greater efficiency.

Additionally, the expanding popularity of subscription-based services such as Spotify, Amazon Prime, Netflix, and Audible is further fuelling the need for mobile payment solutions, thus driving the United States mobile payment market demand.

United States Mobile Payment Industry Outlook

According to industry reports, smartphone adoption in the U.S. was 84% in 2022 and is anticipated to grow to 89% by 2030. The number of smartphone connections is anticipated to reach 377 million by 2030. This steady rise in smartphone adoption is expected to stimulate mobile payments, thereby driving the United States mobile payment industry revenue. As a result, the ecosystem will experience increased consumer engagement and higher transaction volumes.

As per the US Census Bureau, retail sales in the U.S. have demonstrated steady growth, adjusted for seasonal variations, in the 1st quarter of 2024 total retail sales reached USD 1,820,022 million, compared to USD 1,792,376 million in the 1st quarter of 2023. E-commerce sales have similarly increased, from USD 266,314 million in the 1st quarter of 2023 to USD 289,204 million in the 1st quarter of 2024. E-commerce has maintained its importance, representing 15.9% of total retail sales in the 1st quarter of 2024, up from 14.9% in the same period of 2023. The 4th quarter of 2023 saw an e-commerce contribution of USD 283,293 million to total retail sales, marking a 15.6% share of total sales. This represented a significant rise from the 3rd quarter of 2023, where e-commerce sales accounted for 15.4% of the total, with USD 279,739 million. In the 2nd quarter of 2023, retail sales amounted to $1,787,398 million, with e-commerce contributing USD 272,821 million, making up 15.3% of the total. Additionally, unadjusted for seasonal fluctuations, retail sales reached a peak of USD 1,892,581 million in the fourth quarter of 2023, with e-commerce contributing USD 322,862 million, which accounts for a notable 17.1% of total sales. The growth of e-commerce is having a significant impact on the expansion of the United States mobile payment market revenue by enhancing convenience, security, and the overall user experience.

The extensive use of smartphones and high levels of digital literacy is fuelling the popularity of mobile payments, thereby driving growth in the United States mobile payment industry.

• Mobile payments offer quick, secure transactions, enhancing consumer convenience.
• Continuous innovations in security and payment technologies improve user experience.

Vulnerabilities and fraud risks can undermine consumer trust in mobile payments.

• A diverse range of platforms and standards can create confusion and compatibility issues.
• Some demographics may be hesitant or lack access to the necessary technology.

The rise in online shopping trends is increasing the demand for mobile payment solutions, thereby enhancing opportunities in the United States mobile payment market.

• Opportunities to integrate with AI, blockchain, and IoT can enhance functionalities.
• Potential for growth in international markets as mobile payment systems become more widely adopted.

Evolving regulations and compliance requirements could impact market operations.

• Rapid technological changes could lead to obsolescence or increased competition.
• Economic downturns or shifts could affect consumer spending and adoption rates.

Key Players in the United States Mobile Payment Market and Their Key Initiatives

PayPal Holdings Inc.

• Launched "PayPal Rewards" program. 
• Introduced "PayPal Zettle".

Apple Inc.

• Launched Apple Pay Later to meet the growing demand of the United States mobile payment market. 
• Launched the new Tap to Pay feature on iPhone.

Block, Inc.

• Introduced Cash App Pay. 
• Launched Square Banking to capture the United States mobile payment market opportunities.

Samsung Electronics Co. Ltd.

• Launched Samsung Wallet integrating payments. 
• Introduced Samsung Money by SoFi.

United States Mobile Payment Industry Segmentation

“United States Mobile Payment Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Technology

• Direct Mobile Billing
• Near Field Communication
• Mobile Web Payment
• SMS
• Mobile Application
• Others

Market Breakup by Payment Type

• B2B
• B2C
• B2G

Market Breakup by Location

• Remote Payment
• Proximity Payment

Market Breakup by End Use

• BFSI
• Healthcare
• IT and Telecom
• Media and Entertainment
• Retail and E-Commerce
• Transportation
• Others

Market Breakup by Region

• New England
• Mideast
• Great Lakes
• Plains
• Southeast
• Southwest
• Rocky Mountain
• Far West

United States Mobile Payment Market Share

Retail and e-commerce are anticipated to witness significant growth over the forecast period. The integration of the retail and e-commerce sectors with mobile payment solutions has enhanced the shopping experience for consumers by offering unprecedented speed and convenience. The introduction of rewards and loyalty programs by various retailers on the utilisation of mobile payment solutions is further boosting the United States mobile payment demand growth.

Remote payments account for a significant United States mobile payment market share. This growth can be attributed to the secure nature of the payments owing to the presence of various security measures including biometrics, two-factor authentication, and OTPs, among others. The rising requirement for recurring payment solutions due to the growing popularity of subscription-based services is supporting the United States mobile payment industry growth.

Leading Companies in the United States Mobile Payment Market

The companies offer a versatile digital payment solution that enables individuals and businesses to securely send and receive money online.

• PayPal Holdings Inc. 
• Apple Inc. 
• Alphabet Inc. 
• Block, Inc. 
• Samsung Electronics Co. Ltd. 
• Microsoft Corp. 
• Mastercard Inc. 
• Amazon.com Inc. 
• MoneyGram International, Inc.  
• Visa Inc.