Digital Commerce in the US

PROSPECTS

Digital wallets driving rapid mobile payment adoption

Consumers in the US are increasingly browsing for products through their mobile devices, encouraged by seamless checkout experiences and added transaction security. Digital wallets reduce the friction associated with checkout experiences for both remote and proximity payments.

Retailing industry driving remote digital commerce growth

Remote digital commerce is expected to record positive growth over the forecast period as retailers continue to enhance payment options in search of improved, seamless checkout experiences for their consumers. Apparel and footwear specialist retailers have incorporated stronger digital commerce business strategies, leveraging on the increased reach of social media and online advertising to drive traffic into their bricks-and-mortar locations.

Online or offline purchase?

The adoption of mobile payments during in-store checkout experiences increased dramatically towards the end of the review period and is expected to continue increase both proximity and remote payment transactions during the forecast period. Mobile phones have become ubiquitous devices for many US consumers, who have started to access their smartphones in-store during bricks-and-mortar shopping experiences.

COMPETITIVE LANDSCAPE

Starbucks app outperforming competitors

Alternative forms of payment are becoming more popular among younger consumers in the US as they increasingly seek innovation and smooth checkout experiences. Starbucks’ mobile application has reaped constant success by merging its loyalty programme with a digital wallet, thus allowing consumers to maximise their loyalty points earning potential with their purchases.

PayPal strengthens its lead in remote payments

PayPal remains the most used digital wallet in remote payments across the US. The online payments company has diversified its services and pushed peer-to-peer transactions through existing product Venmo during 2018.

AliPay gaining ground via QR codes in the US

AliPay is expanding its global reach by taking on Apple Pay and PayPal in the US. Although the mobile payment system was launched in the US in 2017, it was not until mid-2018 that AliPay increased its merchant acceptance by broadening its partnership with First Data, a US based financial services institution specialising in providing credit card processing and payment solutions.

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