North America contains the world’s largest economy: the United States. Accepting payments in this region allows businesses to tap into a digital payment market with a transaction value that’s projected to surpass $3.4 trillion in 2025. Because there’s no single dominant payment method in North America, businesses must understand which options customers in this region prefer and decide which ones they will offer.

Below, we’ll explain what businesses that plan to accept payments in North America should consider, including:

• Accepting varied payment methods
  
• Improving the checkout experience
  
• Investing in payment security
  

The state of the market

The payment market in North America is driven by technological advancements and shifting customer behavior. Credit and debit cards have been widely accepted in this region for decades, and other electronic payment methods such as digital wallets are becoming more common as mobile payments and ecommerce transactions grow.

With the expansion of digital payments, North America faces challenges regarding regulations and concerns over data privacy and security. As regulatory bodies grapple with how to balance improvement and consumer protection, they are creating a regulatory environment that differs across states, provinces, and countries. Cybersecurity threats also pose a substantial risk to the integrity of payment systems, prompting industry stakeholders to invest heavily in fraud detection and prevention technologies.

Payment methods

In North America, the most popular payment methods vary depending on the region, demographic, and payment environment. Here are some of the most used methods.

Current usage

Credit and debit cards remain dominant payment methods in North America, with widespread use of major card networks such as Visa, Mastercard, American Express, and Discover for both online and in-person transactions. In 2023, credit cards held a 33% market share of ecommerce transaction volume and 42% of point-of-sale transaction value in North America (not including Mexico).

Contactless payment methods, including Tap to Pay cards and digital wallets, are becoming more popular. Digital wallets are gaining traction, especially among younger demographics. In the US, for example, digital wallets accounted for 37% of ecommerce transaction value in 2023.

The US and Canada each have their own electronic funds transfer systems that are popular for B2B payments: Automated Clearing House (ACH) in the US and Automated Clearing Settlement System (ACSS) in Canada. Although sending payments through these networks isn’t instantaneous, it’s usually cheaper than processing credit card payments or wire transfers. That makes ACH and ACSS popular choices for B2B transactions.

Popular B2C payment methods in North America

• Credit cards
  
• Debit cards
  
• Digital wallets
  
• Buy now, pay later (BNPL)
  

Popular B2B payment methods in North America

• Credit cards
  
• ACH and ACSS payments
  
• Wire transfers
  

Emerging trends

BNPL payments made through providers like Affirm, Afterpay, and Klarna are growing throughout North America. The US BNPL market was valued at about $1.6 billion in 2022 and is expected to increase at a compound annual growth rate of 24.3% from 2023–2030.

Ease and friction of entry

Entering North American markets means handling unique challenges in areas ranging from taxes to payment security. Here’s what businesses should consider before they accept payments in North America.

Taxes

Businesses are required to collect sales tax under local tax regulations. While many countries have a federal sales tax, tax obligations differ by state and sometimes by municipality in the US, as well as by province in Canada. Noncompliance or irregularities in tax collection and remittance can have legal implications. Consulting with tax professionals can help businesses address each country’s rules and regulations.

Chargebacks and disputes

Consumer protection laws and regulations shape the chargeback process across North America. Chargebacks are typically handled through a structured process governed by card networks, banks, and financial institutions. When a customer disputes a transaction, the business is notified and the funds are temporarily held pending investigation. The business can respond to the chargeback by providing evidence such as transaction records, delivery confirmation, and communication with the customer.

International payments

If your business accepts payments from multiple countries or in multiple currencies—or plans to do so in the future—consider these factors.

• Currency conversion
  Accepting payments in different currencies requires currency conversion. In the US, Canada, and Mexico, the exchange rate system is based on a floating rate where market demand and supply determine currency value. Businesses can convert currencies via traditional banks, online platforms, or foreign exchange brokers. Each entity has its pros and cons, such as higher fees with banks and potential security risks with online platforms.

• Multicurrency features
  Ecommerce businesses or B2B businesses that cater to international clients often incorporate multicurrency features that allow customers to view prices and make payments in their local currencies.

• Legal and regulatory compliance
  International transactions and currency conversion are often regulated in this region. Compliance requires accurate recordkeeping and reporting, and businesses must be transparent with customers about conversion rates and associated fees.

Security and privacy

North American countries have rigorous frameworks that govern security, compliance, and regulatory standards. Although the specifics of these frameworks vary from country to country, there are important overarching themes. Here’s a closer look at the security and privacy environment.

• Data protection laws
  From Canada’s Personal Information Protection and Electronic Documents Act to Mexico’s Federal Law on Protection of Personal Data Held by Private Parties, each nation’s data privacy legislation mandates that businesses secure personal data.

• Anti-Money Laundering (AML) legislation
  AML legislation, which aims to stop illegal income from moving through the financial system, is rigorous in North America. Financial institutions and certain other entities are required to have procedures in place to identify and report suspicious activity.

• Consumer protection measures
  Governmental bodies regulate unfair business practices while federal laws establish the rights of ecommerce customers, including transparent advertising, the right to information about the terms and conditions of a sale, and clear refund and return processes.

• PCI DSS protocols
  Businesses and payments platforms that accept credit card transactions must comply with the Payment Card Industry Data Security Standard (PCI DSS). This global standard outlines best practices for storing, processing, and transmitting cardholder data, which reduce the risk of fraud.

Key success factors

North America’s payment systems reflect local customers’ preferences and the region’s role in the global financial market. Successfully accepting payments here requires a blend of technical knowledge, regulatory agility, and overall adaptability. Here are ways that businesses can shape their strategies.

• Diverse digital payment options
  Customers in this region use a variety of payment methods. Providing multiple options increases the likelihood that customers will find one that works well for them. Accepting credit and debit cards, digital wallets, BNPL, and other payment methods can increase convenience and sales.

• Intuitive checkout experiences
  Make the checkout process as quick and painless as possible to reduce abandoned carts. Intuitive integration into ecommerce platforms, concise checkout instructions, and one-click checkout can improve the customer experience.

• Localized payment interfaces
  English, French, and Spanish are all commonly spoken in different parts of North America. Providing payment interfaces in each language can create a more personalized user experience and remove barriers at checkout.

• Strict payment security and compliance
  North America had the largest fraudulent transaction value of any regional market in 2023, accounting for over 42% of global fraud by value despite representing less than 7% of banked individuals. Implementing strong payment security measures and complying with industry standards such as PCI DSS can mitigate these risks, and protecting customer data helps businesses avoid costly breaches and penalties for noncompliance.

Key takeaways

North America’s advanced economies and financial infrastructures offer businesses many opportunities for growth, but tapping into these markets requires an understanding of the unique preferences of local customers and how to protect their payment information. Here’s a brief summary, along with tips to build your payment strategy.

Accept varied payment methods

• Support digital wallets
  Digital wallets like Apple Pay and Google Pay are popular with customers due to their convenience and the ubiquity of smartphones.

• Embrace BNPL payments
  BNPL payments are projected to increase across North America in the next few years, and businesses can take advantage of this trend by accepting BNPL transactions.

• Enable cash transactions
  Countries in North America still use cash regularly for in-person transactions, especially in Central America and the smaller island nations. For unbanked populations, cash payments are the easiest option.

Improve the checkout experience

• Speed up checkout
  Implementing one-page or one-click checkout can save customers time. This can ultimately reduce cart abandonment, as customers tend to drop off if a checkout process is too long or complicated.

• Accommodate multiple languages
  Building payment interfaces and providing support in English, French, and Spanish can boost customer trust and encourage customers across the region to complete the checkout process.

• Offer multicurrency support
  Accepting payments in other currencies can make shopping more accessible for international customers who might be unfamiliar with paying in other currencies.

Invest in payment security

• Verify customer identities
  To mitigate the risk of card-not-present fraud, businesses use fraud detection tools such as two-factor authentication to validate user identities. For online card purchases, 3D Secure can verify customer identities during payment.

• Prioritize data protection
  Comply with country-specific data protection laws and global PCI DSS standards to avoid fines and reassure customers that their personal information is safe with your company.

• Choose a payment processor with security in mind
  Use a payment processor that helps you maintain PCI compliance and offers advanced fraud detection systems to pinpoint suspicious transactions in real time.