US B2C Payment Market Research, 2032
The US b2c payment market was valued at $268.25 million in 2022 and is projected to reach $506.55 million by 2032, growing at a CAGR of 8.7% from 2023 to 2032.
The business-to-consumer (B2C) payment market is the setting, in which consumers pay companies for goods and services through a number of channels. This industry includes a broad variety of payment options, such as bank transfers, digital wallets, credit cards, debit cards, and mobile payments. In recent years, there has been a notable surge in the B2C payment market due to the growing popularity of online buying and e-commerce. Nowadays, customers demand easy, safe, and smooth payment processes through online and offline channels. Thus, companies are constantly coming up with new ways to provide a wide range of payment choices and enhance the overall payment experience for their clients.
Financial institutions, payment processors, technology companies, and e-commerce platforms are some of the major participants in the business-to-consumer payment market. These organizations work together to create and provide payment solutions that satisfy the changing requirements of both merchants and customers. The b2c payment market is represented by stringent safety regulations, quick technical improvements, and intense rivalry. To satisfy the demands for digital-first economy, the B2C payment market is anticipated to continue growing and innovating as digitalization continues to change how customers trade.
Segment Review
The US b2c payment market is segmented on the basis of type, industry vertical, and application. On the basis of type, the market is fragmented into bank transfer, digital wallet and cards, and others. Depending on industry vertical, it is segmented into banking and financial services, healthcare, hospitality & tourism, transportation & logistics, retail & e-commerce, insurance, and others. By application, it is divided into rebate, insurance claim, refund, and others.
By Type
Digital Wallet & Cards segment is projected as one of the most lucrative segments.
On the basis of industry type, the retail and e-commerce segment dominated the US b2c payment market in 2022, and is expected to continue this trend during the forecast period. This is attributed to rise in online shopping and the proliferation of e-commerce platforms have transformed consumer behavior, driving a substantial portion of transactions away from traditional stores to digital channels, which drives the growth of the market. However, the healthcare segment is expected to witness highest growth, owing to factors such as rise in healthcare costs and increase in demand for convenient payment options, there is a growing need for secure, efficient, and user-friendly payment solutions. This has spurred innovation in B2C payment solution tailored to the healthcare sector, such as mobile payment apps, digital wallets, and online portals.
By Industry Vertical
Retail & E-commerce segment is projected as one of the most lucrative segments.
Competition Analysis
The report analyzes the profiles of key players operating in the US b2c payment market such as PayPal Holdings Inc., Digital Disbursements, Tremendous, Blackhawk Network, Inswitch, Incomm Payments, Quickbooks (Intuit Inc.), Onbe, Everyware Worldwide Inc., and Payoneer Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the U.S B2C payment market.
Recent Product Launch in the US B2C Payment Market
In September 2023, Airbnb extended and expanded its strategic partnership with Payoneer. It is a preferred payment provider for Airbnb across multiple countries, enabling hosts to get paid quickly and locally. Payoneer’s platform connects businesses around the world through a scaled infrastructure and a global, resilient network of bank partners. This not only allows Airbnb Hosts in such locations to get paid locally but also to access and spend funds in a variety of ways, among other benefits.
In May 2023, Everyware, a US based fintech, partnered with Sunbit to make the Pay-Over-Time integration available in Pay By Text form for convenient, quick, and safe payment processing, which enable companies to successfully sell their products and services to customers who might otherwise not choose to or be able to pay for everything at once..
In June 2022, Linnworks, a UK-based e-commerce technology company, announced a partnership with the global leader in commerce technology and payments Payoneer. The partnership provide retailers with integrated options to receive funds and make payments with competitive currency conversions while creating an increased opportunity for online sellers to expand their marketplace offering.
In May 2023, Onbe, a leading business to consumer disbursements financial technology company, announced the addition of PayPal and Venmo functionalities to its product offerings. With PayPal and Venmo, Onbe’s clients have more options to provide fast, seamless and secure digital choices to their recipients within Onbe’s existing product suite.
Top Impacting Factors
Growing e-commerce industry and rising consumer demand for digital payments
The e-commerce sector in the US experienced exponential growth, fueled by rise in preference for online shopping, convenience, and availability of a wide range of products and services to consumers. As more businesses establish their online presence and consumers turn to digital channels for their purchases, the demand for secure, seamless, and efficient payment methods has intensified. This shift towards e-commerce has led to surge in digital transactions, prompting businesses to invest in robust payment processing systems and technologies to meet the evolving needs of consumers.
Moreover, rise in consumer demand for digital payment options changed the landscape of the U.S. B2C payment market, as consumers seek convenience, flexibility, and security in their payment experiences. Rise in use of mobile devices, popularity of mobile wallets, and the preference for contactless payments are driving the adoption of digital payment methods among US consumers. Businesses are responding to this demand by offering a variety of digital payment solutions, such as mobile payment apps, online payment gateways, and e-wallets, to cater to the preferences of tech-savvy consumers who value speed and convenience in their transactions. The convergence of the growing e-commerce industry and rise in consumer demand for digital payment options are fueling innovation and competition in the US b2c payment market, driving businesses to enhance their payment offerings and deliver superior payment experiences to their customers.
Technological advancements
The B2C payment market is fueled by digital transformation, which is changing the way consumers and organizations conduct financial transactions in the US. The extensive use of digital technologies has revolutionized the payment processing industry, resulting in faster, convenient, and secure transactions. US companies are using digital payment options such as online payment platforms, digital wallets, and mobile wallets to improve consumer experiences, streamline payment procedures, and reach a wider audience. The US b2c payment market is changing as a result of the shift to digital payment methods, which give companies the means to meet the needs of tech-savvy customers are more dependent on digital channels for their transactions.
Furthermore, digital transformation is driving innovation in the B2C payment market by enabling the development of advanced payment technologies that offer enhanced security and efficiency. Businesses are investing in technologies such as blockchain, biometric authentication, and artificial intelligence to improve transaction security, prevent fraud, and ensure compliance with regulatory requirements. The integration of these digital technologies into payment processes is not only enhancing the security of transactions but also enabling businesses to offer personalized and frictionless payment experiences to consumers. By embracing digital transformation, businesses in the B2C payment market stay ahead of the curve, drive growth, and capitalize on the opportunities presented by the evolving landscape of digital payments.
Key Benefits for Stakeholders
- The study provides an in-depth US b2c payment market analysis along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the US b2c payment market size is provided in the report.
- The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the US b2c payment industry.
- The quantitative analysis of the global US b2c payment market for the period 2022–2032 is provided to determine the US b2c payment market potential.
U.S. B2C Payment Market Report Highlights
| Aspects | Details |
 By Type |
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 By Industry Vertical |
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 By Application |
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 Key Market Players | Blackhawk Network, Digital Disbursements, Quickbooks (Intuit Inc.), Everyware Worldwide Inc., Onbe, Payoneer Inc., Incomm Payments, Inswitch, Tremendous, PayPal Holdings Inc. |
Analyst Review
According to the CXOs of leading market players, the U.S. B2C payment market is experiencing significant growth and transformation driven by technological advancements, change in consumer behavior, and increase in shift towards digital payment solutions. The B2C payment market includes a wide range of industries, including retail, e-commerce, travel, and entertainment, where businesses are focusing on enhancing the payment experience for consumers by offering seamless and secure transaction processes, multiple payment options, and innovative payment technologies. Adoption of digital payment methods such as mobile wallets, contactless payments, and peer-to-peer transfers is reshaping the landscape of the U.S. B2C payment market, providing convenience, speed, and efficiency for both businesses and consumers. In addition, the B2C payment sector is witnessing several significant trends, including rise in focus on data security and privacy. Companies are making investments in technologies that boost data protection, facilitate transaction security, and guarantee regulatory compliance. Businesses are setting a higher priority on the creation of safe and convenient payment solutions as customers depend more and more on digital payment methods to gain their customers trust and loyalty. In addition, the need for integrated and seamless payment experiences that satisfy tech-savvy customer preferences gets driven by the growth of online shopping platforms and mobile commerce.
Furthermore, the B2C payment market is expected to experience development and innovation in the future as companies use cutting-edge technologies such as blockchain, artificial intelligence, and biometric authentication to improve the security and efficiency of payment operations. Businesses participating in the B2C payment sector should position themselves for success and take advantage of the opportunities given by the changing environment of digital payments by keeping up with market trends, consumer preferences, and regulatory developments.
For instance, in January 2024, Lemonway partnered with PayPal, to optimize payments for B2C marketplaces. Through this partnership, online payment players make it possible to optimize financial transactions for merchants and buyers in a secure and compliant environment. With this partnership with PSP, Lemonway is fulfilling its mission to simplify payment for B2C marketplaces, offering them the best and simplest features.
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