BNPL was not the most used payment method in U.S. e-commerce in 2022, although it did grow relatively quickly. The United States prefers credit cards and mobile wallets over other payment options, likely due to the popularity and user experience with mobile payment apps such as PayPal. The figures shown here are from before Apple entered the United States BNPL market. Installment loans through this specific provider may increase the market share of buy now, pay later. Apple Pay Later rushed to a penetration rate not far behind Affirm, only months after launch.
Wallets and credit cards: Less used than elsewhere
North America's use of credit cards and digital wallets in online shopping was not the highest in the world. A global comparison in e-commerce payment behavior shows that credit cards accounted for 35 percent of e-commerce payments in Latin America in 2022. North America's 31 percent was on par with the Middle East and Africa (MEA). Wallets are noticeably more popular in Asia-Pacific than in North America - reaching a 69 percent and 32 percent market share, respectively. This popularity of wallets causes predictions to be that the number of cashless payments will increase much more in Asia-Pacific than in Europe and North America combined.
BNPL and crypto: The way forward?
Predictions are that eight out of 10 e-commerce vendors in the United States will offer buy now, pay later on their website come 2024. Respondents to a 2022 survey, especially, hoped to offer BNPL or cryptocurrency on their website within the next two years. One should note that the response pre-dated the fall of crypto exchange FTX. Additionally, the source does not clarify whether merchants would like to accept direct payments with Bitcoin or whether this involved a third-party payment aggregator.
FAQs
Take credit cards, a major payment method in the US. Cards are still the most-used payment method, with American Express, Mastercard, Visa as large global card schemes.
What is the future of online payments? ›
Driven by mobile commerce, mobile wallets will become the most popular online payment method by 2024 globally, accounting for over a third of all payments in that time. In the U.S. alone, mobile wallets are predicted to overtake physical cards as the most popular online payment method in the next three years.
What is the largest online payment system? ›
We asked U.S. consumers about "Biggest e-commerce payment brands" and found that "PayPal" takes the top spot, while "Skrill" is at the other end of the ranking. Find this and more survey data on most used online payments by brand in our Consumer Insights tool.
What is the fastest growing payment method? ›
The top three fastest-growing payment channels between 2024 and 2028 are:
- Virtual Cards – 276%
- Instant Payments – 208%
- All Cards – 97%
Similar to a credit card payment system, the debit card online payment system is one of the most preferred online payment options among people.
What is the most common method of payment in the United States? ›
In general, credit and debit cards are the most widely used payment method.
What will the payment system like by 2050? ›
Traditional bank accounts will be replaced by tokenized versions, tied to identity forms and applicable to both machines and humans. As AI cannot use physical wallets, the computing systems of financial services will rely on cloud-based infrastructure.
How will people pay in the future? ›
Q: What trends should we anticipate in the future of Payments? Some notable trends include the rise of Central Banks Digital Currencies (CBDCs), increased usage of digital wallets, the growth of cross-border payments, and the acceptance of cryptocurrencies.
What is shaping the future of payments? ›
Speed, convenience and competition are shaping the future of payments. Cash is still king but increasingly seen as a way to store value rather than make payments.
Who is the largest payment processor in the US? ›
JPMorgan Chase & Co, owner of the largest bank in the U.S., was the merchant acquirer for a jaw-dropping $1.74 trillion in purchase volume in 2021. Chase provides backend services for eCommerce payment processing giant, PayPal and processes transactions in over 160 countries and 120 currencies.
The top payment gateways in the US include Ayden, Stripe, GoCardless, Authorize.net, TrustCommerce and PayPal. Payment gateways are essential tools for any business, online or off. The purpose of a payment gateway is to accept and authorize credit card payments.
What is the fastest online payment system in the world? ›
- Authorize.net. Best for: Best overall. ...
- PayPal. Best for: Sending and receiving payments. ...
- Google Pay. Best for: Storing multiple payment methods. ...
- Amazon Pay. Best for: A streamlined checkout. ...
- Dwolla. Best for: Third-party integrations. ...
- Stripe. Best for: Customization. ...
- Braintree. Best for: High sales volumes. ...
- WePay.
Despite the rise of digital payment methods, the majority of consumers in North America still use credit and debit cards as their primary means of payment when shopping online. The most popular card brands in the region are Visa, Mastercard, American Express, and Discover.
What is the strongest current trend in payment processing? ›
The top payment trends to watch include:
- Rise of digital wallets and mobile payments.
- Expansion of contactless and biometric payments.
- Growth of peer-to-peer (P2P) and instant payments.
- Integration of blockchain and cryptocurrencies in mainstream transactions.
- Adoption of Central Bank Digital Currencies (CBDCs)
Some of the best modes of payment in worldwide include credit card, debit card, bank transfer, direct deposit, UPI, digital payment, electronic or physical cheques, etc. However the best suited payment mode depends on your individual preferences and the nature of your transactions.
Which payment gateway is mostly used in USA? ›
Using PayPal for your business allows you to leverage diverse tools to make more profits. PayPal tops the USA payment gateway list because of its user payment convenience!
What is the most popular online payment app? ›
PayPal is the go-to payment service for people that do a lot of online shopping. The service is convenient, multi-platform, easy to use, and almost universally accepted.
What is the most used mobile payment in the US? ›
In a January 2021 survey in the U.S., five times more respondents stated they have at some point used PayPal than Apple Pay. PayPal is indeed a well-known brand in the United States, even more so than its own subsidiary Venmo. Regardless, the user base of digital payment methods grew in 2020.
What is the most common way for customers to pay online? ›
Credit and debit cards are the most common payment methods for ecommerce transactions. They allow customers to make payments quickly and conveniently.
