U.S B2C Payment Market Expected to reach $506.55 Million by 2032 - Allied Market Research

According to a recent report published by Allied Market Research, titled, “U.S B2C payment Market by Type, Application and Industry vertical: Global Opportunity Analysis and Industry Forecast, 2022–2032,” the U.S B2C payment Market was valued a $268.25 million in 2022, and is estimated to reach $506.55 million by 2032, growing at a CAGR of 6.9% 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.

Furthermore, surge in rise in technological advancements, growing e-commerce industry, and rise in consumer demand for digital payments are the factors driving the market growth.  However, cyber security threats and fraud risk and regulatory uncertainty are expected to hamper the market growth. Contrarily, advancing in biometric authentication technology is anticipated to offer lucrative opportunities for expansion of the market during the forecast period.

Depending on type, the digital wallet & cards segment holds the largest U.S B2C payment market share, with rise of mobile technology, digital wallets solution such as Apple Pay, Google Pay, and PayPal have gained popularity, allowing users to store multiple payment methods in one place. However, the bank transfer segment is expected to witness growth at the highest rate during the forecast period, consumer preferences and industry trends such as rise in digitalization of financial transactions, which has significantly boosted the popularity of the segment among consumers.

Technological Trends

The U.S B2C payment market is experiencing significant technological advancements that are reshaping the way consumers and businesses engage in transactions. One of the key trends driving this transformation is the increasing adoption of digital and mobile payment solutions. With the widespread use of smartphones and other connected devices, consumers are increasingly turning to mobile wallets, peer-to-peer payment apps, and contactless payment methods for their transactions. These digital payment options offer convenience, speed, and security, making them a preferred choice for many users. Also, the U.S B2C payment market is the integration of blockchain technology and cryptocurrencies. Blockchain technology provides a secure and transparent way to conduct transactions, reducing the risk of fraud and increasing trust among users. Cryptocurrencies like Bitcoin and Ethereum are gaining traction as alternative payment methods, offering a decentralized and borderless way to transfer funds. As more businesses and consumers become familiar with blockchain and cryptocurrencies, further innovation in this space. Artificial intelligence (AI) and machine learning are also playing a significant role in shaping the future of B2C payments in the U.S. These technologies enable faster and more accurate fraud detection, personalized customer experiences, and predictive analytics to optimize payment processes. AI-powered chatbots and virtual assistants are being integrated into payment systems to provide real-time support and assistance to users, enhancing the overall customer experience. Additionally, the U.S B2C payment market is witnessing a shift towards omnichannel payment solutions that offer seamless integration across various platforms and channels. This trend is driven by the increasing demand for a unified payment experience, where consumers can make transactions easily across online, mobile, and in-store channels. Businesses are investing in omnichannel payment solutions to meet the evolving needs of their customers and provide a consistent and convenient payment experience.

Key Findings of The Study

• By type, the digital wallet & cards segment accounted highest revenue for the U.S B2C payment market share in 2022.
• By industry vertical, the retail & e-commerce segment accounted highest revenue for the U.S B2C payment market share in 2022.
• On the application, the refund segment generated the highest revenue in 2022.
• By industry vertical, the manufacturing segment accounted for the U.S B2C payment market share in 2022.

The key players profiled in the U.S B2C payment market analysis is 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 industry.