The 10 Most Popular Digital Payment Providers in the US

Digital payments have become increasingly popular for US consumers, with nine in ten using them at least once a calendar year. When making or accepting payments, Americans have many digital payment providers at their disposal. The most popular options, which we’ll look at in this article, provide multiple uses and options for managing payments.

These multi-use providers allow for peer-to-peer, in-store, or online payments and, in some cases, even payment processing. Many are also widely accepted, as stores, subscription services, and online casinos typically have more than one digital payment solution offered in the payment process. Across the board, they offer increased convenience, making sending or receiving money easier.

1. PayPal

PayPal is one of the most widely known and used digital payment providers in the United States and many parts of the world. It has been operating since the 1990s and was, for many years, a subsidiary of eBay. Considered a secure and reliable payment platform, it became a separate organization in 2015. PayPal is a digital wallet that allows people to store and utilize credit cards or bank accounts. Individuals and businesses can send and receive payments in-store and online.

2. Venmo

Venmo is so popular among users that it’s become a verb, with people saying things like “I’ll Venmo you for my part of the bill” while dining out. Venmo is ideal for situations where peers might split expenses, but it can also be used to make purchases. It’s only available to users in the United States and is mainly used on mobile devices. Venmo has some interesting features that make it both a social and financial platform; users can like or react to transactions, and transactions can appear in a feed as if they were posts on social media. Users can change their privacy settings if they don’t want their transactions shared.

3. Google Pay

Like PayPal, Google Pay is a payment provider and digital wallet. It’s particularly useful for Android users, though it is compatible with some iPhones. The Google Pay app works for contactless in-store, online, and peer-to-peer payments. Google Pay has been available for Android devices since 2011 and was originally known as Google Wallet. It’s considered another secure payment method, as it encrypts each transaction and allows users to take action to protect their sensitive information if their phone is lost.

4. Apple Pay

Another secure payment provider that’s popular in the US is Apple Pay. As the name suggests, it’s only available for iPhone users. Apple Pay syncs across devices, allowing users to access the digital wallet from the iPhone, iPad, Mac, and Apple Watch. It’s a convenient system for Apple users to make in-store and online purchases. Peer-to-peer payments are made through Apple Cash, a digital card in the Apple Pay app. However, because it’s only available for Apple users, there can be limitations in peer-to-peer payments if those in your circle aren’t Apple users. Apple has been offering its digital payment solution since 2014.

5. Amazon Pay

Amazon Pay is a digital-only payment option that has been available to Amazon customers since 2007. It allows customers to use their Amazon account to make payments across different websites and apps, but it cannot be used in-store or for peer-to-peer payments. You do not need an Amazon Prime account to use the service, and there are no additional fees. There are many websites and apps that accept this form of payment, and it saves you from having to enter your personal information each time you want to make a purchase online.

6. Stripe

For organizations and individuals who want to accept payments, donations, or gifts, Stripe is a popular digital payment provider. Unlike other providers, it’s not used for making payments but instead focuses on accepting or receiving them, making the brand valuable to businesses, fundraising organizations, and individuals looking to earn extra income. It accepts a wide range of credit cards, debit cards, and digital payment options, giving users flexibility for their customers, clients, or donors. The payment processor has been available since 2011 and has grown rapidly since its launch. It can be used in-person and online.

7. Afterpay

Afterpay is a buy-now, pay-later financing option for consumers to spread their purchase payment out across six weeks. Afterpay offers an interest-free way to shop that’s widely available for online and in-store shopping. While there is no interest, there are late fees, and you will be subject to both soft and hard credit checks (hard credit checks will temporarily impact your credit score), depending on the purchase you make using it.

8. Visa Click to Pay

Visa Click to Pay makes online shopping easier by eliminating the need to enter your personal and credit card information whenever you make an online purchase. It acts like a digital wallet by holding onto your Visa card or cards, allowing you to make a purchase from a single sign-on.

9. Klarna

Klarna arrived in the US in 2015 after launching in Sweden in 2005. Klarna is like Afterpay; it’s a buy-now, pay-later digital payment provider that has partnered with many retailers in the United States to bring this flexible payment option to consumers who may not have the immediate funds to pay off a purchase they need and who want to avoid high credit card fees. Klarna does not have interest fees, but like Afterpay, it does carry out credit checks and has fees for late payments.

10. Meta Pay

Meta Pay allows users to shop or send money easily through Meta’s platforms: Facebook, Instagram, Messenger, and WhatsApp. Meta Pay can be used for peer-to-peer payments and to shop on Facebook and Instagram. You can connect multiple payment methods, including your credit cards and PayPal account.

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