Digital Commerce in the US

PROSPECTS

Coronavirus (COVID-19) accelerates digital commerce adoption

The outbreak of COVID-19 has dramatically increased adoption of remote commerce in the US, as most Americans are under stay-at-home orders. With much of the US population practicing social isolation starting in the early spring, many sectors will be dramatically affected.

Contactless transactions struggle historically, but beginning to take root

Proximity payments in the US are primarily centred around contactless payments; however, these payments remain uncommon due to several factors. First, contactless terminals in the US were uncommon until the recent EMV chip transition - which largely brought new terminals with both EMV and contactless capabilities.

Ongoing transition of transit systems towards digital commerce

Transit systems hold a particular opportunity for digital commerce habits as an increasing number of public transportation systems upgrade their ticketing and payment platforms to be compatible with remote and proximity purchases. The most high-profile current conversion is the roll-out of contactless payment on the New York City MTA transit system.

COMPETITIVE LANDSCAPE

Apple, Goldman Sachs release new hybrid card

Apple Pay, the digital wallet native to Apple devices, received a major bump in 2019 as the company launched its credit card offering issued by Goldman Sachs: The Apple Card. The Apple Card is a mobile-first provisioned card that is added directly to and managed in the Apple Pay digital wallet and designed to encourage additional contactless digital wallet transactions by providing 2% cash back for all Apple Pay purchases.

Secure remote commerce aims at network e-commerce growth

The major card networks launched their remote shopping one-stop button, dubbed Secure Remote Commerce (SRC) in late 2019. SRC represents an attempt to simplify online shopping checkout beyond the existing single button options from companies such as Apple and PayPal.

Streaming services proliferate

2019 was a year of streaming services growth. Particularly high-profile launches included Disney+, Apple TV+ and Apple News+.

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