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United States Fintech Market

United States Fintech Market, By Service Propositions (Money Transfer and Payments, Savings and Investments, Digital Lending & Lending Marketplaces, Online Insurance & Insurance Marketplaces, Others (E-Commerce Purchase Financing, etc.)), By Application (Banking, Insurance, Securities), By Deployment (On-cloud, On-premise) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: January 2022
  • Report ID: BWC21210
  • Available Format: PDF
  • Page: 115

Report Overview

United States Fintech market is growing at an incredible rate. The fintech industry has revolutionized the US financial sector and the way Americans deal with money, whether for lending, investing, purchasing insurance, or financing start-ups. To know the factors driving the Fintech market in the United States..

United States Fintech Market- Industry Trends & Forecast Report 2027

United States Fintech market is set to witness promising growth and is estimated to grow at a CAGR of 10.1% during the forecast period (2021-2027). The fintech market in the United States is booming impeccably due to the growing investment and surging volume of transactions for products and services in the country. Furthermore, the rapid growth in the popularity of digital payment, including mobile payments via smartphone apps, is playing a crucial factor in boosting the United States Fintech market.

United States Fintech Market- Overview

Fintech is a combination of the words "financial technology”. In simple words, Fintech leverages technology to streamline financial activities. It is the integration of innovative technologies such as artificial intelligence (AI), big data and data analytics, blockchain, Robo-advisors, etc., into financial services. The fintech ecosystem encompasses a wide range of services, including payments, lending, wealth technology, and personal finance management.

United States Fintech Market Forecast and Trends

Growth Drivers

Fintech Investment Upswing

Because of the significant potential of the fintech sector in the United States, fintech companies and start-ups are attracting large investments that will sustain their growth during the forecast period. Forbes reports that fintech companies in the US raised USD 12.8 billion in investment in the first quarter of 2021. Under emergency funds, US-based Fintech Robinhood alone raised USD 3.4 billion in 2021. Such investments are significantly propelling the growth of the United States fintech market.

Structured Government Regulations and Policies

The US federal and state governments both take an active interest in boosting the fintech sector in their country. Legislation governs the interpretation of existing rules and regulations, granting licenses to businesses, examining their records, and so on. Additionally, the government takes necessary steps to boost the cybersecurity offerings of the fintech industry. The US and Israel recently formed a new task force aimed at securing financial technology against ransomware and other threats.

Restraints

High Risk Associated with Security Breaches

Through the rapid adoption of cloud computing through fintech, businesses and individuals are exposed to the risk of cyberattacks and data theft. Fintech companies without adequate protection are highly susceptible to cyberattacks, such as phishing, mobile, and web-based app security attacks. Data such as personal data of an individual, including name, address, social security number, financial details, customer health information, etc., may be exposed as a result of cyberattacks. Due to this, the fintech market in the United States has faced a significant decline and hinders adoption, especially among small and medium-sized firms.

Impact of COVID-19 on United States Fintech Market

With over 49.9 million cases nationwide, the United Nations ranks among the most affected countries with the Coronavirus. In the wake of a strict lockdown imposed by the government to reduce the spread of the disease, mobility was completely limited in the country. Thus, the COVID-19 situation significantly provided lucrative growth opportunities to the United States fintech market. The fintech services assisted the businesses and consumers in making cashless payments, thus preventing physical contact to avoid the COVID-19 spread. Furthermore, the fintech applications also provided a platform for insurance and easy loans with limited formalities, which boosted the overall fintech market in the United States.

United States Fintech Market - By Service Prepositions

Based on service prepositions, the United States fintech market is segmented into savings & investments, money transfer & payments, online insurance & insurance marketplaces, digital lending & lending marketplaces, and others (e-commerce purchase financing, etc.). Among these, the money transfer & payment segment accounted for the largest market share in 2020. Money transfer & payment services in the country are gaining opportunities due to the flourishing e-commerce industry and increasing volume of online transactions. Moreover, several major fintech companies in the United States specialize in payment apps, including Square, Stripe, TransferWise, and AvidXchange, which drives the United States fintech market.

United States Fintech Market - By Applications

Based on applications, the United States fintech market is segmented into banking, insurance, and securities. The banking sector dominates the market as these financial institutions are increasingly adopting fintech services to increase consumer interaction through intermediary fintech platforms and offer their services to boost their revenue. In the United States, the banking sector is rapidly moving towards digitization, and with the help of fintech, they are making their services paperless and cashless, which is expected to boost the market growth over the forecast period.

United States Fintech Market - By Deployment

Based on deployment, the United States fintech market is segmented into cloud and on-premise. The cloud segment accounts for the largest market share as it allows businesses to store and manage data remotely and with higher security. It also provides opportunities to small and medium-sized businesses for expansion while eliminating the need to establish physical hardware setup for services. Furthermore, the emergence of cloud service companies such as Amazon Web Services, Alibaba Cloud, etc., is also giving significant opportunities for the cloud segment to grow in the United States market.

United States Fintech Market - Competitive Landscape

The leading players in the United States fintech market are Stripe, Klarna, Kraken, Chime, Plaid, Robinhood, Brex, Carta, Three-way tie, Square Inc., and other prominent players.

The market is highly consolidated among industry giants including Chime, Plaid, Stripe, Brex, etc. Stripe, which is primarily a payment processing software and application, holds the major share in the market. The companies significantly invest in expanding their fintech services beyond payment and insurance and are targeting growing sectors such as blockchain and cryptocurrency, digital lending and credit, etc. Additionally, fintech startups such as Clyde, Digit, MANTL, etc., are also emerging with great potential and giving tough competition to established players. Furthermore, the adoption of competitive strategies, such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.

Recent Development

  • In November 2021, PayZen, a healthcare fintech startup, announced to have raised USD 15 million in a Series A round led by SignalFire and other prominent investors. This investment is aimed towards expanding the ‘care now, pay later model for hospitals and patients in the United States.

Scope of the Report:

Attributes Details
Years Considered Historical data – 2017-2020
Base Year – 2020
Forecast – 2021 – 2027
Facts Covered Revenue in USD Billion
Product Service/Segmentation By Service Propositions, By Application, By Deployment
Key Players Stripe, Klarna, Kraken, Chime, Plaid, Robinhood, Brex, Carta, Three-way tie, Square Inc., and other prominent players.

By Service Propositions

  • Money Transfer and Payments
  • Savings and Investments
  • Digital Lending & Lending Marketplaces
  • Online Insurance & Insurance Marketplaces
  • Others (E-Commerce Purchase Financing, etc.)

By Application

  • Banking
  • Insurance
  • Securities

By Deployment

  • On-cloud
  • On-premise
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Key Market Segments
  2. Research Methodology
    1. Qualitative Research
    2. Methodology
    3. Regional Split of Primary & Secondary Research
    4. Secondary Research
    5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
    6. Market Size Estimation
    7. Assumptions for the Study
    8. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. Industry Insight and Growth Strategy
    1. Value Chain Analysis
    2. DROC Analysis
      1. Market Drivers
        1. Increasing Investment in The Fintech Sector
        2. Structured Government Regulations and Policies
      2. Market Restraints
        1. High Risk Associated with Security Breaches
      3. Market Challenges
        1. High Operating Cost
      4. Market Opportunity
        1. Growth of the E-Commerce Industry
        2. Emergence of Fintech Startups
    3. Recent Developments
    4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
  5. United States Fintech Market Overview
    1. Market Size & Forecast by Value, 2017-2027
    2. Market Size and Forecast, By Segment
      1. By Service Propositions
        1. Money Transfer and Payments
        2. Savings and Investments
        3. Digital Lending & Lending Marketplaces
        4. Online Insurance & Insurance Marketplaces
        5. Others (E-Commerce Purchase Financing, etc.)
      2. By Application
        1. Banking
        2. Insurance
        3. Securities
      3. By Deployment
        1. On-cloud
        2. On-premise
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2020)
    3. Competitive Benchmarking by Operating Parameters
  7. Impact of COVID-19 on United States Fintech Market
  8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Stripe
    2. Klarna
    3. Kraken
    4. Chime
    5. Plaid
    6. Robinhood
    7. Brex
    8. Carta
    9. Three-way tie
    10. Square Inc.
    11. Oscar Health
    12. Other Prominent Players
  9. Key Strategic Recommendations

 

List of Figures

 

Figure 1: United States Fintech Market Segmentation

 

Figure 2: United States Fintech Market Value Chain Analysis,

 

Figure 3: Company Market Share Analysis, 2020

 

Figure 4: United States Fintech Market Size, By Value (USD Million), 2017-2027

 

Figure 5: United States Fintech Market Share (%), By Type, By Value, 2017-2027

 

Figure 6: United States Fintech Market Share (%), By Product Type, By Value, 2017-2027

 

Figure 7: United States Fintech Market Share (%), By Distribution Channel, By Value, 2017-2027

 

 

List of Tables

 

 

Table 1: United States Fintech Market Size, By Type, By Value, 2017-2027

 

Table 2: United States Fintech Market Size, By Product Type, By Value (USD Million), 2017-2027

 

Table 3: United States Fintech Market Size, By Distribution Channel, By Value (USD Million), 2017-2027

 

Table 4: Stripe Financial Analysis

Table 5: Stripe Business Overview

Table 6: Klarna Financial Analysis

Table 7: Klarna Business Overview

Table 8: Kraken Financial Analysis

Table 9: Kraken Business Overview

Table 10: Chime Financial Analysis

Table 11: Chime Business Overview

Table 12: Plaid Financial Analysis

Table 13: Plaid Business Overview

Table 14: Robinhood Financial Analysis

Table 15: Robinhood Business Overview

Table 16: Brex Financial Analysis

Table 17: Brex Business Overview

Table 18: Carta Financial Analysis

Table 19: Carta Business Overview

Table 20: Three-way tie Financial Analysis

Table 21: Three-way tie Business Overview

Table 22: Square Inc. Financial Analysis

Table 23: Square Inc. Business Overview

Table 24: Oscar Health Financial Analysis

Table 25: Oscar Health Business Overview

 

 

Market Segmentation

By Service Propositions

  • Money Transfer and Payments
  • Savings and Investments
  • Digital Lending & Lending Marketplaces
  • Online Insurance & Insurance Marketplaces
  • Others (E-Commerce Purchase Financing, etc.)

By Application

  • Banking
  • Insurance
  • Securities

By Deployment

  • On-cloud
  • On-premise
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Frequently Asked Questions (FAQs):

Ans: United States fintech market is estimated to grow at a CAGR of 10.1% by 2027.
Ans: The major factors driving the growth of the United States fintech market are the increasing investment in the fintech sector and structured government regulations and policies.
Ans: The key players in the United States fintech market are: Stripe, Klarna, Kraken, Chime, Plaid, Robinhood, Brex, Carta, Three-way tie, Square Inc., and other prominent players.
Ans: The banking segment accounted for the largest share in the United States fintech market.
Ans: High risk associated with security breaches in the country is restricting the growth of the United States fintech market.