The latest publication from Hamburg-based market research company yStats.com titled “North America Online Payment Methods 2023” shares insights into the online payment market in the United States and Canada and analyses the important figures, forecasts, and trends. The report also highlights the growing adoption of alternative online payment methods including BNPL, and digital wallets among others across the U.S. and Canada.
Digital wallets are forecasted to witness a significant increase in transaction value by 2028
While card-based payment methods such as credit and debit cards continue to dominate the North American online payment market, digital wallets like PayPal, Apple Pay, and Google Pay have been steadily gaining ground. As of September 2022, digital wallets secured the fourth position in terms of online payment methods, used at least five times per month, following debit cards, cash, and credit cards. In the U.S., close to one-third of surveyed respondents reported using digital wallets for online payments as of April 2022, with nearly half of them embracing at least one e-wallet or mobile payment app for online purchases as of July 2023. This growing adoption is mirrored in the forecasted double-digit Compound Annual Growth Rate (CAGR) for digital wallet transaction values between 2023 and 2028 on a global scale.
Credit and debit cards are still among the dominant online payment methods in the U.S.
Despite the diversification of online payment methods, the American economy’s preference for credit and debit cards persists. This preference is largely attributed to the well-established network of card providers in the region. Meeting the evolving consumer demand for frictionless payment solutions, card providers now offer contactless payment alternatives such as BNPL and one-tap payments, ushering in an era of innovation in North America’s online payment landscape. Buyers are also open to experimenting with novel payment methods like account-to-account app payments and machine-to-machine payments due to their speed, convenience, and control. However, credit and debit cards remain at the forefront as the most frequently used payment methods for consumers in their most recent online purchases, as of December 2022. Furthermore, these two payment methods are poised for the highest anticipated increase in usage as of April 2023.