Key insights for online merchants
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The US is the second-largest e-commerce market globally in terms of revenue, and has the highest penetration rate worldwide. With over 259 million online shoppers — projected to grow to 334 million by 2029 — the US offers vast opportunity and a robust digital infrastructure for global merchants.
But in recent years, consumer attitudes in this mature market have changed.
Shoppers are becoming increasingly value-conscious. Rising living costs and increasingly complicated supply chains have pushed many to prioritise price over brand loyalty. Low-cost, fast-fashion brands like Temu and Shein introduced a wave of extremely affordable fast fashion.
Even as credit cards remain the dominant payment method in the US, payment preferences are shifting towards digital wallets, discounts, and flexible options that maximise convenience and value. Buy Now, Pay Later (BNPL) services continue to grow, especially among younger consumers. About 56% of BNPL users reported it was the only way they could afford their online purchases.
For global merchants, this means adapting to changing consumer preferences while managing the complexities of the US payment landscape, including fraud risks, chargebacks, and cross-border financial management.
To thrive, global merchants need to do more than localise their products. They also need to offer diverse, secure, and cost-efficient payment experiences. By supporting card-based and digital payments, reducing fraud, and simplifying multi-currency settlements, partners like Antom can help global merchants navigate the US market with greater confidence and control.
Key insights for online merchants
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With a population of over 335 million and a GDP of US$27.36 trillion in 2023, the United States is the largest developed economy in the world. It has a strong labour force, low unemployment (at 3.6%), and a post-industrial economy where the service sector accounts for 70% of GDP. These fundamentals support the scale and resilience of its retail and e-commerce sectors.
In 2023, US e-commerce had 259 million users and an 81.3% penetration rate, ranking first globally. By 2029, this user base is expected to grow to 334 million, with a penetration rate exceeding 97.1%. While growth has stabilised after the pandemic boom, the market remains dynamic: annual e-commerce revenues are expected to increase from US$1.03 trillion in 2023 to US$1.34 trillion by 2025.
But inflation, stagnant incomes, and supply chain pressures have caused a shift in consumer priorities. Jungle Scout’s 2023 to 2025 Consumer Trends Reports revealed that:
In 2023, the average U.S. household income was US$101,805, although the median was US$80,610. Essential expenditures such as housing, transportation, and food dominate spending, alongside robust savings and insurance awareness, with a significant portion dedicated to personal insurance and retirement contributions.
Key insights for online merchants
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Due to stagnant incomes over the past two years, American shoppers have become both tech-savvy and price-sensitive, exploring various value-first platforms to get the best deals. Over 81.6% of U.S. online shoppers are under 54 years old, with 70% coming from middle- or high-income groups, indicating a link between online shopping and purchasing power. Smartphones are the most popular online shopping device (at 73%), followed by laptops (at 43%).
Social media has become a key driver of online purchases, with platforms like Facebook, TikTok, and Instagram influencing both buying behaviour:
In addition, emerging technologies like ChatGPT now play a role in product discovery, with 5% of consumers already using it for product searches.
US consumers frequently purchase clothing, shoes, food and beverages, and beauty products online. For millennials, online purchases of children’s products, jewellery, and hobby items surpass in-store buying by over three times.
Many online shoppers flock to value-first platforms like Temu and Shein, both of which offer aggressive discounts and low prices. Amazon, the traditional e-commerce leader, now faces stiff competition from these newcomers and has responded with innovations like Amazon Haul, which offers finds for under S$20.
A 2024 survey revealed that 63% of consumers cite affordable prices and discounts as their primary reason for shopping online, with product reviews and free or fast shipping also influencing their decisions. GWI results reveal that 42% of consumers believe “next-day delivery” enhances their intention to place an order.
In short: today’s US shoppers expect speed, convenience, and value, and they’re willing to switch brands and platforms to get them. This also makes them more receptive to digital payments.
In 2023, digital payment penetration in the US reached 69.29%, with transaction value exceeding $2.12 trillion — the second-highest globally after China, and ahead of India. A survey revealed that US consumers mainly use digital payments for online shopping, in-app purchases, and transferring money to friends and family.
The number of digital payment users in the US is projected to reach 262 million by 2025, with a penetration rate of 76.38%. The transaction volume of digital payments is expected to exceed US$3.15 trillion, growing at a CAGR of 21.66% from 2025 to 2029.
McKinsey’s survey indicates that convenience and security in digital payments are essential for US consumers. Perks are becoming table stakes, too — 25% of consumers state that reward points and discounts influence their choice of payment method.
Key insights for online merchants
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The US has one of the most developed payment ecosystems in the world. As such, many shoppers have access to credit cards and remain loyal to them. In 2023, credit card transaction volume reached US$5.6 trillion, accounting for 41% of point-of-sale (POS) payments.
This dominance is backed by a deeply ingrained culture of credit usage and incentives:
However, there are signs of change, as the credit card share of POS payments is projected to drop to 34% by 2027, signalling diversification in payment methods. At the same time, digital wallets and alternative payment methods are gaining ground.
Digital wallets have overtaken credit cards as the most popular online payment method in the US in 2023. More than half of consumers use them more frequently than traditional payment methods, attracted by speed, ease, and mobile compatibility.
Card-linked wallets such as PayPal, Cash App, Venmo, Google Pay, and Apple Pay significantly outperform (at 33%) other digital wallets (at 8%), reflecting the country’s continued reliance on the credit card system. PayPal leads the pack, with 71% of consumers indicating a preference for it.
Digital wallets also appeal to younger shoppers. The US is projected to reach 125 million digital wallet users by 2025, driven by Gen Z shoppers and mobile-first behaviours.
BNPL has become a key payment method for price-sensitive consumers as it allows split-payments without interest. It’s popular among young shoppers, particularly for purchasing items such as fashion, beauty, and electronics. Federal Reserve data reveal that consumers choose BNPL to spread payment pressure (87%), for convenience (82%), and to avoid credit card interest (60%).
For most online shoppers, BNPL also offers a lifeline, as 56% of BNPL users say it’s the only way they can afford their purchases. Consumers using BNPL typically spend 1.5x to 2x more than those paying directly. By 2027, BNPL is expected to account for 6% of U.S. e-commerce payments. Its growth reflects a broader trend among consumers who want more control over how and when they pay.
With platforms like TikTok and Facebook driving e-commerce engagement, the line between content and commerce is becoming increasingly blurred. Consumers are more likely to make a purchase when checkout is fast, simple, and seamlessly integrated into the platform experience.
Popular payment options for social commerce include:
As social commerce in the US continues to grow, global merchants must optimise the checkout experience for these social media channels, especially for mobile-first users.
Key insights for online merchants
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Despite the convenience and popularity of card payments, they also bring complexity and risk, especially for global merchants. Fraud remains a significant concern in the US, where high transaction volumes and reliance on credit cards make the market a target for criminal activity. In 2023 alone, national fraud losses totaled US$10 billion, marking the first time that fraud losses reached this benchmark.
Common threats include:
Chargebacks are particularly damaging for e-commerce businesses. Aside from direct financial loss, online merchants also risk being blocked by payment networks, which can impact their ability to operate normally.
To address this, merchants need intelligent fraud prevention systems. Antom Shield, for example, uses AI-driven risk assessment models trained on global transaction data to reduce chargeback rates and identify fraud in milliseconds. This helps improve dispute resolution and maintain order conversion.
As global supply chains evolve, merchants face numerous challenges in managing cash flow across markets. Multi-currency payments, pre-payment requirements, and long settlement cycles put pressure on liquidity, especially in cross-border transactions.
The shift from “China production, global sales” to more localised, regional supply chains has created fragmented payment processes that are harder to manage. The good news is that merchants can unlock strategic fund management with the right partnerships. By working with a partner like Antom, merchants can simplify cross-border processes and maintain healthier cash flow through:
By simplifying financial operations, merchants can focus on what matters most: offering better prices and faster service to their price-sensitive, value-first US customers.
The US e-commerce market is diverse and fast-moving. Consumers expect competitive prices as well as flexible, rewarding, and secure payment options.
Merchants that offer a wider range of payment methods — ranging from cards and digital wallets to BNPL and bank transfers — can reduce reliance on a single payment channel and improve conversion rates by meeting customer preferences. They can also further unlock customer loyalty through cash backs, points, and other promo integrations.
By working with the right partner, global merchants can localise their payment strategy without adding operational burden.
The US may be one of the most established e-commerce markets in the world, but success in this market isn’t guaranteed. Rising costs, shifting consumer priorities, and payment complexity prompt online merchants to rethink their strategies and move with the market, or risk being outpaced by their more agile competitors.
To succeed in this environment, global merchants must look beyond growth and embrace flexible and localised payment strategies, end-to-end financial transparency, and intelligent fraud protection systems.
By meeting U.S. consumers where they are — whether on social platforms, with rewards-driven choices, or through payment methods that offer both value and trust — merchants can build stronger relationships and drive long-term customer loyalty. With the right infrastructure and support, the US e-commerce market remains a fertile ground for global merchants.
Choose Antom to cross borders and enjoy local payment advantages easily. Antom provides comprehensive acquiring services covering all popular local payment methods.
In today’s highly competitive market, choosing the right partner is key to business success. Partnering with Antom not only brings numerous advantages to your company but also provides comprehensive support for your business operations. Here are some of the key benefits of working with Antom:
Antom has powerful market resources and an extensive network, enabling businesses to cover mainstream markets quickly. Through in-depth market analysis and flexible strategic planning, we enable merchants to quickly reach a broader target audience, thereby increasing brand visibility and market share. Whether you're an emerging business or an established brand, Antom can help accelerate your market penetration.
Each industry has unique needs and challenges. Through its professional team, Antom provides tailored solutions for specific industries, enhancing operational efficiency and market competitiveness, and supporting businesses in achieving sustainable growth. This personalised service meets current customer needs and anticipates future trends, ensuring your business remains ahead of the curve.
In business activities, financial security and risk control are among the top concerns for companies. Antom boasts advanced technological capabilities, offering safe and reliable financial services. We rigorously test our risk control system to ensure transparency and reliability in all transactions. Additionally, we carefully designed our fund management strategies to minimise risks and safeguard our clients’ financial security, allowing them to focus on their business with peace of mind.
In partnership with Antom, clients will experience unparalleled service. Our team not only provides expert consulting support but also offers comprehensive follow-up services. Our goal is to be the most trusted partner for our clients, providing home-like care and support throughout the partnership.
Antom has extensive market experience in various regions. Our team understands the local market operations and cultural habits, enabling us to provide practical market strategies. This deep local expertise allows us to help clients quickly adapt and integrate into new markets, minimising entry barriers and ensuring successful development in different market environments.
Partnering with Antom is not just an expansion of your business – it’s an opportunity to access comprehensive support and efficient solutions. We are committed to creating significant commercial value for our clients through rapid market coverage, industry-specific customisation, robust security, attentive service, and extensive market experience. Contact us to learn how we can work together.
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