The e-commerce payment landscape underwent substantial transformations driven by the surge in mobile payments and the adoption of digital wallets such as Apple Pay, Google Pay, and Samsung Pay. The COVID-19 pandemic further accelerated the shift towards contactless payments, encompassing both card and mobile methods. Alternative payment methods, notably Buy Now, Pay Later (BNPL) and cryptocurrency payments, gained prominence. Heightened security concerns led to the implementation of advanced measures like two-factor authentication and biometric verification. Subscription-based models, particularly in streaming services and software-as-a-service, influenced payment preferences. Regulatory changes, including updates to data protection laws, underscored the importance of adherence to standards like PCI DSS. Enhancing user experience became a focal point, with streamlined checkouts, one-click payments, and guest checkout options gaining popularity. Cross-border e-commerce transactions expanded, necessitating payment providers to offer solutions for currency conversion and localized payment options. Artificial Intelligence (AI) and Machine Learning (ML) played pivotal roles in fraud detection, risk management, and personalizing payment experiences. Additionally, a growing consumer emphasis on sustainability prompted e-commerce businesses to explore eco-friendly payment options.
Popular offline payment methods in the US
Cash
Debit Cards
Cheques
Money Orders
Wire Transfers
Mobile Payments
List of payment methods in the US
Visa stands as a highly prevalent and favored payment method in the United States, holding a prominent position among credit card networks. With widespread acceptance at millions of locations, encompassing retail outlets, restaurants, and online platforms, Visa offers users a versatile and convenient means of payment. The array of credit and debit card options, ranging from traditional to rewards and prepaid cards, caters to diverse consumer preferences. Ensuring flexibility, Visa cards can be utilized for both in-person and online transactions. Beyond its ubiquity, Visa extends additional advantages to cardholders, such as fraud protection, purchase security, and extended warranties. As a result, Visa not only simplifies transactions but also enhances the overall security and convenience of financial transactions for consumers in the United States.
Mastercard is widely accepted as a payment method in the United States. It can be used at millions of locations, including retail stores, restaurants, online merchants, and more. Mastercard offers various types of cards, including credit cards, debit cards, and prepaid cards, which can be used for making purchases and accessing cash at ATMs. Additionally, many banks and financial institutions in the US issue Mastercard-branded cards to their customers. Mastercard also provides additional benefits and features to cardholders, such as rewards programs, purchase protection, and travel insurance. Overall, Mastercard is a convenient and widely accepted payment method in the USA.
Affirm is a payment method that can be used in the USA. Affirm allows customers to make purchases and pay for them over time with fixed monthly payments. It is available at a wide range of retailers and online stores in the USA.
American Express is widely accepted as a payment method in the United States. It is accepted at millions of merchants, including restaurants, retailers, online stores, and more. American Express cards can be used for both in-person and online purchases, making it a convenient payment option for consumers. Additionally, American Express offers various rewards and benefits to cardholders, such as cash back, travel rewards, and purchase protection. Overall, American Express is a popular and trusted payment method in the USA.
Diners Club International, established in 1950, stands as one of the pioneering credit card companies in the United States, renowned for introducing the concept of charge cards. Presently, it operates as a subsidiary under Discover Financial Services. Diners Club cards serve as a globally accepted payment method, usable at millions of locations worldwide, encompassing restaurants, hotels, airlines, and retail stores. Cardholders enjoy diverse benefits, including travel insurance, airport lounge access, and rewards programs, while also benefiting from security features like fraud protection and zero liability for unauthorized charges. Utilizing a Diners Club card in the United States involves presenting the card at the point of sale or entering card information for online transactions, with merchants processing payments through the extensive Diners Club network. Overall, Diners Club remains a widely embraced and versatile payment option in the United States, offering a range of advantages to its users.
Klarna, a Swedish fintech company, has gained prominence for its buy now, pay later payment solution, allowing customers to make online purchases and pay in installments. Recently expanding to the United States, Klarna is now a payment option on various American online retailers’ websites. Users can choose Klarna at checkout and opt for installment plans, ranging from four equal payments to extending over six to 36 months. To use the service, customers must create an account, undergo a quick credit check, and, if approved, proceed with their purchase, adhering to the agreed-upon installment schedule. Klarna’s appeal in the U.S. is amplified by additional features such as price drop notifications, enabling users to request refunds for decreased item prices within a specific timeframe. Overall, Klarna offers a flexible payment option, gaining popularity as more U.S. retailers adopt it.
Discover is a widely accepted payment method in the United States, ranking among major credit card networks like Visa, Mastercard, and American Express. With the ability to make purchases at numerous merchants, including online retailers, brick-and-mortar stores, and restaurants, Discover offers cardholders various benefits such as cashback rewards, exclusive discounts, and access to special events. The card also provides essential features like fraud protection and 24/7 customer service support. To utilize Discover for payments, users can present their card at the point of sale or enter card information for online transactions, potentially requiring additional verification like a signature or PIN. Its popularity stems from its broad acceptance, rewards program, and customer-centric advantages.
Apple Pay, a mobile payment and digital wallet service by Apple Inc., facilitates seamless transactions using iPhones, Apple Watches, iPads, or Mac devices at various retailers, online stores, and apps in the United States. Users add credit or debit cards, loyalty, and gift cards to the Wallet app for easy access. Payments are authorized through contactless terminals, Face ID, or Touch ID. Major retailers like Walmart, Target, Best Buy, and Starbucks accept Apple Pay, which is also applicable for online purchases. The service extends beyond payments, enabling users to send and receive money instantly through the Messages app via Apple Cash. Not only does Apple Pay provide convenience, but it also enhances security with biometric authentication and tokenization, eliminating the need for physical cards.
ACH Direct Debit is a prevalent payment method in the United States, allowing businesses to automatically collect payments from customers’ bank accounts for recurring expenses like subscriptions and utility bills. Customers provide their bank details, and after authorization, businesses securely store this information to initiate seamless payment transactions. Regulated by the National Automated Clearing House Association (NACHA), ACH Direct Debit follows established rules to ensure secure and efficient processing. This method streamlines payment processes, eliminating the need for manual monthly payments and providing both businesses and customers with a convenient and hassle-free financial solution.
PayPal is a widely accepted payment method in the United States. It allows users to make online payments, send money to friends and family, and receive payments from others. PayPal can be used to make purchases on various e-commerce websites, including popular retailers like Walmart, Target, and Amazon. Additionally, many small businesses and independent sellers also accept PayPal as a payment option. Users can link their bank accounts, credit cards, or debit cards to their PayPal account to fund their transactions. PayPal offers buyer protection and dispute resolution services, providing an added layer of security for online transactions. Overall, PayPal is a convenient and secure payment method for individuals and businesses in the United States.
Google Pay, developed by Google, is a versatile digital wallet and online payment system designed for Android devices. In the United States, users can employ Google Pay in various ways, including contactless in-store payments by tapping their Android devices on supported terminals using linked credit or debit cards. Additionally, the platform facilitates online purchases on websites and apps, offering a streamlined checkout process with saved payment information. Google Pay enables peer-to-peer payments, allowing users to transfer money directly from their bank accounts or Google Pay balance to friends and family. Moreover, in select cities, the service extends to transit payments, where users can utilize Google Pay to pay for public transportation fares by adding their transit card to the app. To access these features, users need to download the app, set up an account, and add their preferred payment methods for a seamless payment experience wherever Google Pay is accepted.
JCB, or Japan Credit Bureau, is a prominent credit card issuer in Japan, globally recognized but less commonly accepted in the United States. Despite its limited acceptance, certain U.S. merchants, particularly those catering to international clientele or in partnership with JCB, do support it as a payment method. To locate such merchants, JCB offers a merchant locator tool on its website, enabling users to search by location and filter based on specific services or industries. Some online retailers also accept JCB, identifiable by the JCB logo or inclusion in the list of accepted payment methods during online checkout. It’s essential to acknowledge that JCB may not have as widespread acceptance as major credit card brands like Visa or Mastercard in the United States, emphasizing the importance of having alternative payment methods when making purchases or traveling in the country.
Cash App Pay is a mobile payment service available in the United States, enabling users to send and receive money through their smartphones. Accessed via the Cash App mobile app, users can link their bank accounts or debit cards to facilitate transactions. Payments are made by scanning QR codes or entering a merchant’s identifier, offering a secure and convenient alternative to cash or credit cards. The service supports bill splitting and facilitates sending money to friends and family. Beyond payments, Cash App provides features like buying and selling Bitcoin, stock investments, and direct deposits. Users can also opt for a Cash Card, a customizable debit card linked to their Cash App account for purchases and ATM withdrawals. With its user-friendly interface, security measures, and additional financial functionalities, Cash App Pay has gained popularity as a versatile payment method in the United States.
UnionPay is a prevalent Chinese payment method widely embraced in China and across Asia but is less commonly accepted in the United States compared to mainstream options like Visa or Mastercard. While some US merchants may support UnionPay, its availability is not as widespread, making it advisable for visitors to check with merchants in advance. Some US banks do issue UnionPay cards, enabling their use at establishments that accept UnionPay. Despite its acceptance at select locations, UnionPay is not as ubiquitous or widely utilized as other payment methods in the United States.
Samsung Pay is a mobile payment service available in the United States, enabling users to make payments through their Samsung smartphones or smartwatches at any contactless payment-accepting merchant. To use the service, users add credit or debit card information, either by taking a photo or entering details manually. Employing both Near Field Communication (NFC) and Magnetic Secure Transmission (MST) technologies, Samsung Pay allows contactless payments at NFC-enabled terminals and traditional magnetic stripe card terminals. The platform extends support to loyalty and gift cards, providing users with a comprehensive digital wallet experience. Samsung Pay offers additional features such as transaction history, rewards programs, and special offers, allowing users to earn points or cash back on purchases redeemable for various rewards. Overall, Samsung Pay presents a secure and convenient payment solution with widespread acceptance in the United States, coupled with enticing benefits like rewards and exclusive offers.
Maestro is not widely embraced as a payment method in the United States. Although Maestro is a well-known debit card brand in numerous countries, it is not as prevalent in the US. The majority of merchants in the US primarily accept credit cards, such as Visa, Mastercard, American Express, and Discover. A few merchants may accept debit cards with the Visa or Mastercard logo, but the acceptance of Maestro specifically is restricted. It is always advisable to verify with the merchant beforehand to ascertain if they accept Maestro as a form of payment.
Alipay, a widely used mobile payment platform in China, faces limited acceptance in the United States, with its usage primarily concentrated among merchants catering to Chinese tourists or having ties with Chinese companies. Despite this, Alipay has been actively expanding its presence in the US by forming partnerships with payment processors and financial institutions. The company has introduced a mobile app for US users, facilitating payments at participating merchants. Although Alipay’s adoption in the US is currently overshadowed by more established payment methods like credit cards and popular mobile wallets, such as Apple Pay and Google Pay, its growth is anticipated as more merchants recognize the opportunity to attract Chinese consumers accustomed to utilizing Alipay for their daily transactions.
WeChat Pay, a widely used mobile payment platform in China, faces limited acceptance in the United States. While some US merchants, particularly luxury retailers such as Bloomingdale’s and Saks Fifth Avenue, along with certain restaurants and hotels catering to Chinese tourists, do accept WeChat Pay, its availability is not as extensive as other mobile payment options like Apple Pay or Google Pay. To utilize WeChat Pay in the US, individuals must have a WeChat account linked to their bank account or credit card, allowing them to make transactions through the WeChat app at participating locations. Despite its presence, WeChat Pay may not be a convenient choice for everyday purchases in the US due to its relatively limited acceptance compared to other more prevalent mobile payment methods.
Amazon Pay is a digital wallet service by Amazon, allowing users to employ their Amazon account for payments on external websites and apps. Available in the USA, it streamlines the online purchase process by enabling customers to select the Amazon Pay option at checkout, where they can log in with their Amazon credentials and choose from associated payment methods like credit cards or bank accounts. This not only ensures security but also enhances convenience by eliminating the need to input payment details on multiple platforms. Amazon Pay is renowned for its reliability, offering a familiar and trusted method for users to make online transactions, utilizing the same payment methods and shipping addresses associated with their Amazon accounts, ultimately expediting the checkout process.
Zip is a buy now, pay later service available at participating online and in-store retailers in the United States. Customers can sign up for an account on the Zip website or app, select Zip as their payment option during checkout, and, if approved, choose a repayment plan that suits them. The service offers flexible options, including interest-free plans for smaller purchases and interest-bearing plans for larger ones, with weekly, bi-weekly, or monthly payment choices. Zip aims to give customers greater financial flexibility, enabling them to manage their budget by spreading out the cost of purchases over time. It’s important to be aware that Zip may entail fees or interest charges, depending on the chosen repayment plan, necessitating a careful review of terms and conditions before use. Overall, Zip serves as an alternative payment method for U.S. customers seeking installment-based payment options.
Afterpay and Clearpay are leading buy now, pay later services that enable consumers to make purchases and divide payments into four equal installments, with the first payment due at the time of purchase and subsequent payments every two weeks. Afterpay, established in Australia in 2015 and later expanding to the United States in 2018, is prominent in the U.S. market, while Clearpay, launched in the United Kingdom in 2015, has a stronger presence in the UK and Europe. Both services operate on interest-free models, providing an appealing option for budget-conscious shoppers seeking to avoid immediate full payments and credit card debt. The user process involves selecting Afterpay or Clearpay at checkout, creating an account, providing payment information, and, upon approval, completing the purchase with the first installment. As these services gain popularity, an increasing number of retailers are expected to adopt them to attract customers and enhance sales.
PaySafeCard, a popular prepaid payment method, enables users to make online purchases without requiring a bank account or credit card. Despite its popularity, PaySafeCard faces limited acceptance in the United States, where credit cards, debit cards, and digital wallets like PayPal dominate the market. The prevalence of these alternative payment methods, coupled with regulatory variations among states, contributes to PaySafeCard’s restricted availability. Some online stores and gaming platforms in the US do accept PaySafeCard, but its usage remains comparatively limited. Interested users can verify merchant acceptance through the PaySafeCard website or customer support, emphasizing the importance of checking with individual retailers before using PaySafeCard for online transactions.
