1 minute read
Market Analysis
The financial market is more saturated with payment options than ever before. Americans are faced with choosing from a plethora of methods, which adds pressure on financial technology firms to establish themselves as key players. Although contactless payment methods have escalated in other countries, like China and the UK, the United States holds loyal to traditional forms of payment like cash and credit cards. 1
The majority of the consumers in the United States have yet to adopt mobile wallets, citing security concerns as their main deterrent. 7 Online, American consumers are more likely to utilize their preferred digital wallet, however credit cards remain the top preference. Third party services like in the peer-to-peer payment sector, Venmo and PayPal, have also risen in popularity in recent years. These third party options are becoming increasingly utilized by consumers and merchants alike due to their simple functionality and user accessibility.
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37%
of consumers citing frustration with slow lines at checkout due to magstripe cards 1
0.18%
of point-of-sale transactions in the United States are made with contactless cards 2
70%
of perchants across the country have point-of-sale terminals capable of accepting contactless payments 3
95%
of new point-of-sale terminals being shipped across the United States are able to accept contactless payments 4
5%
of the credit cards issued in the United States are contactless 5
56%
of all cards in use in the country will be contactless by the end of 2022 6
1. http://academic.mintel.com.ezproxy.lib.utexas.edu/display/860629/ 2. https://www.creditcards.com/credit-card-news/contactless-tap-and-go-cards-us-market.php 3. https://www.marketwatch.com/press-release/contactless-cards-set-to-deliver-substantial-benefits-across-the-us-payments-ecosystem-2018-07-23 4. https://www.creditcards.com/credit-card-news/contactless-tap-and-go-cards-us-market.php 5. https://www.ft.com/content/445a308c-02f3-11e9-9d01-cd4d49afbbe3 6. https://www.atkearney.com/documents/10192/9746746/Cashing+In+on+Cashless+Commerce.pdf/fa4f4d59-829c-4a84-af41-3dda1f70918f
