Payments Landscape in the US: Opportunities and Risks to 2021

  • ID: 4416777
  • Report
  • Region: United States
  • 53 pages
  • GlobalData
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FEATURED COMPANIES

  • American Express
  • Capital One
  • Discover
  • HSBC
  • Mastercard
  • Pulse
  • MORE
Payments Landscape in the US: Opportunities and Risks to 2021

Summary

United States payment card market is highly mature and competitive, and features a wide range of card-issuing and alternative payment brands (including peer-to-peer [P2P], e-commerce, and mobile proximity payments). Consumers have a great deal of choice as a result, and there are a wide variety of specialized and generalist products available for consumers to use. However, this diversity has also led to a fragmented market in which alternative payment tools have struggled to gain market share over traditional options, and the one truly generalist tool available - cash - remains highly popular.

Competition in the US alternative payments market increased following the launch of Apple Pay, Samsung Pay, and Android Pay. Most recently, Alibaba collaborated with payment processor First Data to introduce its mobile payment service Alipay in May 2017. The service is accepted by over 4 million merchants in the US. Banks, card issuers, and retailers are also launching proprietary solutions to compete in the market. For instance, JPMorgan Chase offers Chase Pay, Walmart launched Walmart Pay in July 2016, Capital One and Wells Fargo launched the digital Capital One wallet in 2014, while Wells Fargo launched its own wallet in May 2016.

To facilitate cross-border commerce, in June 2017 First Data launched Local Payments Solution. The solution supports consumers’ choice of payment for purchases made, irrespective of their geographical location and currency, as it combines various online payment methods into a single interface, thus helping merchants manage and expedite cross-border payments. The payment methods aided by Local Payment Solution include real-time online banking, direct debit, cash/voucher payments, and digital wallets. Through the solution online businesses can access 195 local payment options.

With the rise in economic activities in the US, the Federal Reserve raised its primary interest rate from 1% in March 2017 to 1.25% in June 2017. This move, the fourth rate rise in the past year, has resulted in major retail banks raising interest rates on lending, including on credit cards and other loans. For example, Wells Fargo, US Bancorp, Regions Bank, and Deutsche Bank all increased their prime lending rates from 4% to 4.25% following the announcement.

The report 'Payments Landscape in the US: Opportunities and Risks to 2021', provide top-level market analysis, information and insights into the US cards and payments industry.

In particular, this report provides the following:
  • Current and forecast values for each market in the US cards and payments industry, including debit, credit, and charge cards.
  • Detailed insights into payment instruments including credit transfers, direct debit, cheques, cash, and payment cards. It also, includes an overview of the country's key alternative payment instruments.
  • E-commerce market analysis and payment methods.
  • Analysis of various market drivers and regulations governing the US cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit, credit, and charge cards.
Companies mentioned in this report: JP Morgan Chase, Citibank, Bank of America, Capital One, Wells Fargo, PNC, USAA, HSBC, Fifth Third Bank, US Bank, TD Bank, Visa, Mastercard, American Express, Discover, Star, Pulse.

Scope
  • Competition in the US alternative payments market increased following the launch of Apple Pay, Samsung Pay, and Android Pay. Most recently, Alibaba collaborated with payment processor First Data to introduce its mobile payment service Alipay in May 2017. The service is accepted by over 4 million merchants in the US. Banks, card issuers, and retailers are also launching proprietary solutions to compete in the market. For instance, JPMorgan Chase offers Chase Pay, Walmart launched Walmart Pay in July 2016, Capital One and Wells Fargo launched the digital Capital One wallet in 2014, while Wells Fargo launched its own wallet in May 2016.
  • To develop a fast payment system in the US, in May 2015 the Federal Reserve established a Faster Payments Task Force that has been assigned the responsibility to categorize the goals and characteristics of effective faster payment solutions, assess approaches to accomplish these goals, and ensure implementation and acceptance of faster payment services by 2020. The first stride towards achieving these goals was the publication of Faster Payments Effectiveness Criteria in February 2016. The criteria act as a guideline to evaluate faster payment solution and support improvement in payments. In July 2017, the taskforce published its final report with recommendations for the provision of efficient and fast payment solutions in the US. The report also commands the payments industry to collaborate and transform this faster payments vision into a reality.
  • To facilitate cross-border commerce, in June 2017 First Data launched Local Payments Solution. The solution supports consumers’ choice of payment for purchases made, irrespective of their geographical location and currency, as it combines various online payment methods into a single interface, thus helping merchants manage and expedite cross-border payments. The payment methods aided by Local Payment Solution include real-time online banking, direct debit, cash/voucher payments, and digital wallets. Through the solution online businesses can access 195 local payment options.
Reasons to buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to the US cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the US cards and payments industry.
  • Assess the competitive dynamics in the US cards and payments industry.
  • Gain insights into marketing strategies used for various card types in the US.
  • Gain insights into key regulations governing the US cards and payments industry.
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • American Express
  • Capital One
  • Discover
  • HSBC
  • Mastercard
  • Pulse
  • MORE
Market Overview
Executive Summary
Card-based Payments
E-commerce Payments
Alternative Payments
Payments Infrastructure & Regulation
Appendix
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  • JP Morgan Chase
  • Citibank
  • Bank of America
  • Capital One
  • Wells Fargo
  • PNC
  • USAA
  • HSBC
  • Fifth Third Bank
  • US Bank
  • TD Bank
  • Visa
  • Mastercard
  • American Express
  • Discover
  • Star
  • Pulse
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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