US FinTech Market Forecast to 2020 – Mobile Payments and Robo Advisors to Shape Future Growth” provides a comprehensive analysis of the FinTech market in the US and covers market size and segmentation of overall FinTech market by business models. The report covers the further segmentation of different spaces such as Digital Commerce, Personal Finance and Business Finance into sub segments based on the business models. The sub segments (US Digital Commerce Market, US Mobile Wallets Market, US P2P Money Transfers Market, US P2P Lending Market, US Equity Crowdfunding Market, US Robo Advisors Market and US Business Lending Market) are then considered separately and analysis on them has been done individually. The report covers detailed profiles of leading players in the different sub segments along with the share of major players in the market. The potential and future outlook has been individually discussed for the US Digital Commerce Market, US Mobile Wallets Market, US P2P Money Transfers Market, US P2P Lending Market, US Equity Crowdfunding Market, US Robo Advisors Market and US Business Lending Market and also for the overall FinTech market. The report provides detailed analysis of segments, trends & developments, growth drivers and major restraints and challenges within the industry.
The report serves as a benchmark for existing players and for new players who wish to capitalize on the market potential and investors who are looking forward to venture into the FinTech market in the US.
US FinTech Market
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 ~%.
Digital Commerce Market
Digital payment segment was by far the most revenue generating segment that saw maximum customer interest and participation. The segment was majorly driven by the overwhelming sales of e-commerce market in the country. Digital payments market grew at a CAGR of ~% during 2010-2015. PayPal, Authorize.Net, Stripe and Square were the major payment gateways used by online retail merchants for the purpose of receiving online payments.
Apple Pay, Android Pay, Samsung Pay and PayPal wallet were the most used mobile wallets by customers for making online and in-store payments in the US.
Dwolla, Venmo and Chase QuickPay were the pioneers in the space of P2P money transfers.
Consumer finance market witnessed an exponential growth in the last five years, registering revenues worth USD ~ billion in 2015 from a mere USD ~billion in 2010. The market has grown at a CAGR of ~% during the period 2010-2015.
The mobile payment space has already been highly crowded with a large number of players already in the space. The market will stay crowded as more players enter from social networks to banks to retail chains and other tech companies and the already existing players will implement newer strategies to maintain their standing in the market. Albeit the plethora of players operating in the market, the market is still at its infancy stage, growth prospects are still high.
The market for mobile payments is expected to grow at a promising CAGR of ~% assuming the security concerns have been taken care of. The market is expected to incline up to USD ~billion by 2020.
Consumer Finance Market
Consumer finance market was majorly driven by Robo Advisors which recorded a staggering USD ~billion in 2015, in terms of revenue. Vanguard Personal Advisor Services, Charles Schwab, Betterment, Wealthfront and Personal Capital were the leading players in this segment amongst others. P2P lending market also grew stupendously at a CAGR of ~% during 2010-2015 from USD ~billion in 2010 to USD ~billion in 2015. Lending Club, Prosper and SoFi were the major players that actively raised money for customers in the country.
Business Finance Market
Business finance market has also grown at a rapid pace in the last five years growing from USD ~billion in 2010 to USD ~billion in 2015. This represented growth at a CAGR of ~% during the period 2010-2015. The market for business finance was almost entirely driven by business lending companies which raised funds to startups from several industries from both accredited and non-accredited investors. Several business lending companies have entered in the last five years which approve funds to applicants within no time. Funding Circle, On Deck, Kabbage, CAN Capital and Lending Club are some of the major companies operating in this space amongst others. FinTech companies allowing crowdfunding started off since 2012 and were almost a billion dollar industry by 2015. EquityNet, Fundable, Angel List and Crowdfunder are some of the key companies that have the first mover advantage in this space.
Key Topics Covered in the Report:
Ankur Gupta, Head Marketing & Communications