US Financial Services FinTech Industry - Ken Research

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US Fintech Market Forecast to 2020 Ken Research
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How the US FinTech Market is Positioned? The
FinTech "uprising" has been reshaping the
financial sector by cutting costs and improving
the quality of services to the consumer with
lower time requirement. The FinTech sector has
been evident from a variety of industries ranging
from payments to wealth management, Robo-advisors
and others. There has been a surfeit of startups,
with FinTech firms attracting over USD billion
in 2015. Increased Investments, innovation in
technology, digital connectivity, and supportive
government are some of the factors among others
to spur the growth in the FinTech market in the
US. The FinTech market has increased in terms of
the transactional value from USD billion in 2010
to USD billion in 2015. The growth was
compounded annually at a rate of .
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After the crisis period, the banks in the US have
been following strict rules for lending along
with higher interest rates especially for the
small business. This acted as a pulling factor
for the market place lending model in the FinTech
space. FinTech growth has also been spurred by
the favorable demographic scenario in the
country. There has been a rise in the consumers
between the age of 18-34 (millennial) who are
characterized by the experience sharing habits
and reach out the mobile phones for every data or
detail they need. The short and medium term
scenario shows excessive growth till the FinTech
sectors penetrate in US market by 2018. As of now
only payments segment has matured and accepted in
the US properly, high growth of other segments
would push the transactional volume of FinTech to
a higher growth trajectory up till 2018.
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How has the Digital Commerce Segment
Performed? Technology has largely transformed
the way customers purchase their products and
other services. Digital commerce has even
impacted the travel and consumer foodservice
industries as consumers order food and book
travel tickets online via mobile phones or
desktops. Owing to rapid rise in online and
mobile retail sales and such huge volume of
transactions made online by customers involving
billions of dollars, payment gateway providers
have the ultimate responsibility of enabling safe
and secure transactions and counter any malicious
practices at the same time. E-commerce market
in the country has been the major contributor to
the digital commerce market. Payment gateways
transacted about USD billion in the form of
e-commerce in 2015 as compared to USD billion in
2010. The number of digital shoppers in the US
inclined from about million in 2010 to million
in 2015. Growing internet penetration and
smartphone users has led to incline in online B2B
transactions in the recent past. All these
factors have augmented the growth of digital
commerce market from USD billion to USD
billion at a CAGR of between 2010 and 2015.
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The major companies in the segment include
PayPal, Stripe, Authorize.NET and Square amongst
others. PayPal is leading the market with a share
of around in terms of number of websites using
the platform followed by Authorize.NET, Stripe,
Square and Others The countrys merchant payment
landscape has been undergoing some major
technology driven change. Multi-channel consumer
access to e-commerce has sparked the demand for
new services that support multichannel commerce,
big data analytics, enhanced loyalty programs and
target advertising. Newer players in the industry
providing digital payment gateways, including the
likes of Braintree and Stripe, have brought in
advanced solutions for merchants along with more
secured transaction process and heightened fraud
prevention. Similar such innovations in the
upcoming future will drive the digital commerce
as merchants would be required to upgrade to
payment gateways facilitating greater number of
services.
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What are the Trends in US Mobile Payments
Market? Growing awareness and usage of major
mobile wallets including Apple Pay, PayPal and
Android Pay amongst others resulted in a steep
incline in the number of users. As a result, the
market grew by in 2015 to USD billion.
Overall, the Transaction Value of mobile payments
grew at a CAGR of between 2011 and 2015. The
mobile wallets ecosystem has grown at an
overwhelming pace in the last four years.
Advanced payment security, faster checkout,
loyalty rewards and customer ease have been the
major factor driving the mobile wallets market in
the country. However, in-store payments through
mobile wallets have not had much of a success as
of yet. Delay in adoption of the required
infrastructure such as NFC terminal by retail
merchants have prevented mobile wallets from
achieving mainstream adoption.
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Peer-to-peer payment apps have made it highly
convenient for customer transfer money and their
services usually are accompanied with very
nominal charges or even free of cost. Mobile P2P
payment services have been growing more rapidly
than desktop P2P payment services. Technology
players and social media companies, including
Facebook and Snapchat, have forayed into P2P
payments to enable faster and convenient method
of transferring money between peers. PayPal,
Venmo, Square Cash, Dwolla, Google Wallet,
Facabook Cash and Snapcash are some of the key
players in this space. The P2P money transfer
market stood at USD billion in 2010, which grew
meteorically to USD billion in 2015 at a CAGR of
during 2010-2015. The NFC Based payments and
the adoption of mobile POS technology is expected
to popularize the usage of smart wearables. The
mobile payments market in the United States have
been growing at tremendous rate during the past
five years on the back of increased smartphone
utilization and high internet availability. It is
expected that by the end of 2016 the market will
increase by around .
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As per the current scenario in the US, moist of
the people prefer plastic money as their
preferred mode of payment followed by cash while
only of the population willing to prefer
mobile payments as their payment option. This
shows that even though the growth is substantial,
there is a great room for high growth in the
market backed by greater penetration. Key
Factors Considered in the Report Comprehensive
analysis of the US FinTech market and its
segments Listed major players and their
offerings Identified major developments in last
few years and assessed the future growth of the
industry Government initiatives taken to
stimulate the growth of the market. US Fintech
Companies Growth
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US Performance FinTech Players US Challenges
Fintech Market US Financial Services FinTech
Industry US Fintech Market Growth US Top
Financial Technology Market US Future Outlook
FinTech US Mobile Payments Market Money
Transfers Market United States US Digital
Commerce Market
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nking-financial-services-and-insurance/financial-s
ervices/us-fintech-market-report/54351-93.html Re
lated Reports https//www.kenresearch.com/banking
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es/cards-payments-industry-us-emerging-trends-2019
/3456-93.html https//www.kenresearch.com/banking
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es/north-america-mobile-money-market-research-repo
rt/632-93.html Contact UsKen ResearchAnkur
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