Exploring payment methods in the United States reveals a dynamic shift towards digital transactions.

Credit and debit cards dominate, with Visa and Mastercard leading. FedNow introduces instant transactions, revolutionizing e-commerce payments. The BNPL sector flourishes, offering flexible solutions for consumers. Digital wallets like Apple Pay and Google Pay enhance transaction ease.

As payment methods evolve, they meet diverse needs, promising future financial innovations. Explore these trends further in the #PayWorldTour library for a comprehensive view of the U.S. digital payment landscape.

Payment by card in United States

In 2024, credit cards lead U.S. e-commerce with a 31% share. Debit cards follow at 21%, showing a preference for credit due to benefits. This trend suggests the appeal of credit cards lies in rewards, enhanced security, and better cash flow management.

Visa and Mastercard are the top online payment methods, with 96.1% and 95.9% acceptance rates respectively. American Express and Discover also maintain strong presences. While global schemes lead, local card schemes like US PIN Debit NetworksStar, Accel, NYCE, Jeanie, Presto, and Shazam – play a crucial role. These networks, tailored to the U.S. market, may offer merchants lower processing costs.

Legislative changes, such as the Durbin Amendment, have boosted regional debit networks. These networks, unaffiliated with Visa or Mastercard, support routing preferences for lower merchant costs. In response to EMV adoption, the Debit Network Alliance was formed by ten leading PIN debit networks. This alliance promotes interoperable EMV deployment, ensuring regulatory compliance and innovation.

STAR, one of the largest U.S. interbank networks, exemplifies the scale of these networks. Founded in 1984 and acquired by First Data Corporation in 2003, STAR serves 134 million cardholders. It illustrates the evolution and consolidation within the PIN debit network space.

The card payment infrastructure in the U.S. is robust, ensuring fast and secure transactions. The integration of NFC and EMV chips enhances security, making card payments a preferred choice. This evolution reflects consumer demands for security and convenience in the digital shopping realm.

Local scheme: Star, Accel, Nyce, Jeanie, Presto, Shazam

Star payment method Accel payment method Nyce payment method Jeanie payment method Presto payment method Shazam payment method


Payment by bank transfer in United States

The Federal Reserve launched FedNow in July 2023, revolutionizing U.S. banking with instant payments. This innovation sharply contrasts with the slower, traditional Automated Clearing House (ACH) payments, which often take 1-3 business days to settle.

FedNow supports instant transfers for various transactions, including bill payments, payroll, and peer-to-peer transfers. This capability is paving the way for its integration into e-commerce payments.

The ACH network, foundational for U.S. electronic payments, has evolved with Same-Day ACH. This enhancement accelerates ACH payment processing and settlement, often within the same business day, meeting the demand for faster transactions in e-commerce and beyond.

The Clearing House (TCH) also significantly contributes with its RTP® (Real-Time Payments) network. It’s offering 24/7/365 immediate payment clearing and settlement. The RTP network stands as a key development in the payment landscape, enabling financial institutions to provide swift, secure, and efficient payment solutions.

These systems enhance the payment experience by minimizing the wait for funds to clear. As they become more integrated into e-commerce, they’re expected to greatly influence merchant and consumer transactions. The adoption and impact of these innovations will hinge on cost, technological readiness, and evolving consumer expectations for instant processing.

Local actors : FedNow Service, Same-Day ACH, RTP Network by The Clearing House

Same Day ACH payment method RTP The Clearing House payment method


The Rise of BNPL in USA

The USA’s e-commerce scene thrives with BNPL’s dynamic growth. Over 60 firms, as NORBr lists, offer diverse BNPL choices. This variety marks the sector’s swift rise and growing e-commerce impact.

By 2024’s end, BNPL users in the USA could top 94 million, up from 50 million in 2021. This surge aligns with a global uptick in BNPL usage. Notably, millennials and the 25-34 age group prominently use BNPL, spotlighting its youth appeal.

Leading the BNPL pack in the USA are Klarna and PayPal Credit.

Noteworthy among BNPL providers are Affirm, Sezzle, Uplift, Sunbit, and Splitit. These brands, each unique, cater to various consumer and market needs.

Affirm shines with clear, flexible plans, partnering with numerous retailers. Sezzle focuses on financial health, offering flexible purchasing and credit-building plans.

Uplift specializes in travel, easing the cost of trips over time. Sunbit and Splitit diversify BNPL, tailoring services for daily buys and flexible credit use.

In B2B, Capchase stands out, offering growth capital to SaaS firms for BNPL terms.

Some BNPL services have carved out niche markets, demonstrating the sector’s versatility. PrimaHealth Credit, for instance, offers BNPL plans specifically for healthcare services. It’s making medical care more accessible and manageable for patients.

This diverse BNPL landscape in the USA mirrors broader financial innovation, equipping consumers and businesses for the digital age’s financial demands. As BNPL grows, expect more specialized services meeting unique consumer and market needs.

Local actors : PayPal, Affirm, Sezzle, Uplift, Sunbit, Splitit, Capchase (B2B), Wisetack, PrimaHealth Credit, Perpay

Paypal logo Affirm logo Sezzle logo Uplift logo Splitit logo Capchase payment method PerPay logo


Payment by digital wallet and X-Pay in United States of America

The e-commerce scene in the USA is evolving, thanks to digital wallets. These wallets offer secure, versatile payment options. Services like FasterPay, GooglePay, ApplePay, PayPal, Venmo, Zelle, Samsung Pay, and Dwolla each cater to specific financial needs with their unique features​​​​.

FasterPay stands out for its global payment solutions. It’s enabling users to manage funds in multiple currencies and offering a seamless experience for both online and offline transactions. It’s designed for ease of use, supporting instant transfers worldwide and issuing a debit card for direct account access​​​​.

Google Pay and Apple Pay offer contactless payment capabilities and peer-to-peer money transfers, emphasizing convenience and security. They are widely accepted and integrate smoothly with their respective ecosystems​​.

PayPal and Venmo are known for their flexibility in online payments, with Venmo adding a social aspect to transactions.

Zelle is praised for its instant bank-to-bank transfers, facilitating swift payments without transaction fees. It’s integrated with major banks and credit unions, making it a preferred choice for users looking for efficiency​​.

Dwolla focuses on low-cost ACH transfers, appealing to businesses and developers with its flexible, API-driven payment solutions. It’s particularly useful for those requiring a robust platform for business transactions​​.

Each digital wallet has tailored its services to meet the diverse needs of users, from personal finance management to business operations. The proliferation of these platforms indicates a shift towards more digital, efficient, and secure payment methods, reflecting the evolving demands of the modern consumer.

Local actors : Apple Pay, Google Pay, Cash App, Chime, FasterPay, Link, PayPal, Snap Finance, Yellow Pay, Zelle, Dwolla, Venmo, Square

ApplePay logo GooglePay logo FasterPay logo Paypal logo Zelle Logo Dwolla payment method Venmo logo Square logo


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