US Mobile Payment Market (2019–2026)
With the ever-increasing number of smartphone users, it’s become vital for businesses to pay attention to mobile payments.
The latest figures show that the mobile payment market in the US has been growing in recent years and will continue to do so in the years to come. This is especially so for proximity mobile payments and P2P (peer-to-peer) mobile payments, which are among the most mainstream mobile payment methods.
Start selling online now with ShopifyStart your free trial
Mobile Payment Market: Proximity Mobile Payment
According to recent reports on the mobile payment industry in the US, proximity mobile payment spending per user is expected at $4,177 per mobile phone user. This is a 30.1 percent year-over-year increase from $3,210 in 2021.
Proximity mobile payments here refer to point-of-sale transactions carried out through mobile phones (excluding tablets) and can be anything from scanning and tapping to swiping a mobile phone to pay for a purchase.
Such payment methods have become increasingly popular in recent years. Its expenditure per user grew at an annual average of 27.65 percent from 2019 to 2022.
Though the value of goods purchased using proximity mobile payments per person is set to increase by $3,650 from 2022 to exceed $7,800 in 2026, its growth is expected to slow. The average annual growth rate from 2023 to 2026 is forecast at 17.08 percent.
Mobile Payment Market: P2P Mobile Payment
P2P mobile payments have also been dominating the US mobile payment market.
The total transaction value from P2P mobile payments is expected at $983.9 billion in 2022, 25.3 percent higher than in 2021.
The convenience of this payment method means analysts are expecting more consumers to adopt it. As a result, its total transaction value is forecasted to increase over the next few years and exceed $1 trillion in 2023. By 2024, the total transaction value of P2P mobile payments in the US is projected to top $1.26 trillion.
Mobile payment industry experts have credited the growing popularity of P2P mobile payments to three companies in particular, Venmo, Zelle, and Cash App, which they say are revolutionizing the market.
These three firms have experienced unprecedented growth in recent years as a result of the coronavirus pandemic and have had huge success in getting new users on board their P2P mobile payment service.