No cash please, we’re American: Learn more about the main trends on the US payment market! The United States with its 320 million inhabitants is not only one of the largest domestic markets, but also possesses the biggest GDP worldwide and as a result has one of the highest purchasing power index per capita. So there are many good reasons to take a closer look at payment in this thrilling market: Which are the main payment habits today and what are future trends of payment in the US?
What are the most popular payment methods?
In the USA, the personal credit card and PayPal range amongst the most popular payment methods. Only a minority of 8% pays via cash or cheque – what a difference compared to cash-loving Germans …
Prepaid cards rock in the US
As seen above, consumers in the US love convenient and cost-effective electronic payment tools. The US prepaid cards market is especially growing steadily, projected to reach USD 3.1 trillion by 2020.
US citizens show an overwhelming and ever-expanding online and mobile readiness
POS terminals boom
In terms of financial inclusion, the following figures speak for themselves: The transactions at POS terminals are estimated to rise from roughly 94 million in 2015 to about 128 million in 2021. In order to meet this strong demand, there will be approx. 23 million POS terminals by 2021 – which means a growth of nearly 40% in only six years!
The US, a nation of on-liners
Today, nearly 90% of the US population are internet users and 80% of them use smartphones – which means there is an overwhelming and ever-expanding online and mobile readiness in the US. Not surprisingly, US Americans love to shop online. This is why the e-commerce market volume is projected to raise by a growth rate of over 11% in the period of 2014 till 2019. In 2016, 63% of US citizens already used the internet to pay bills or make purchases; nearly 80% of whom paid by debit card and over 60% by credit card.
Top 5 of American online purchases
When shopping online, Americans most often book flight tickets or hotel stays, followed by clothing and footwear. While in 2015 three of four US citizens shopped online, this number is expected to increase even more to over 80% by 2019. Here is what else is often bought online:
Conclusion: The US payment market in a nutshell
Online and mobile payment methods are welcome, both from the customers’ and from the providers’ perspective. Payment via cash or cheque is playing and increasingly minor role, while debit and credit cards as well as PayPal are most popular.
In summary, the US represent a very attractive market with a huge purchasing power and customers with a high level of online and mobile readiness who love convenient, modern methods of payment.
Would you like to get the whole picture of the US payment market? Click here for a free download of our infographic illustrating payment market insights in the US: