According to the latest market research study published by P&S Intelligence, the U.S. fintech market reached USD 85.7 billion in 2024 and is projected to grow at a 15.1% CAGR from 2025 to 2032, reaching USD 261.2 billion by 2032. This strong expansion is fueled by several key factors: surging consumer demand for digital financial services via smartphones and high-speed internet; rapid adoption of embedded finance—such as instant shop‑checkout financing and integrated ride‑hailing payments; and evolving regulatory and technological environments. Fintech firms are capitalizing on these trends through advanced tools like AI/ML‑driven fraud detection, blockchain, big data analytics, and compliance-focused solutions to meet the sophisticated needs of both consumers and traditional financial institutions.
Fragmentation in the market persisted, with traditional
banks, neobanks, digital wallets, insurtech platforms, and
regulatory-technology (regtech) firms competing for market share under
supportive capital and policy conditions.
Key Insights
- In
2024, B2C fintech dominated with a 55% market share, driven by retail
payments, neobanks, and robo‑advisors benefiting from smartphone
proliferation and consumer preference for seamless digital experiences.
- The B2B
model is forecasted to register the highest CAGR thanks to increasing
demand from SMEs for digital solutions in payments, lending, payroll, and
expenses.
- By
service type, payments and transfers made up 70% of market value in 2024,
reflecting consumers’ preference for fast, secure transactions and massive
adoption of digital wallets and P2P platforms like Zelle, Venmo, and Cash
App.
- Meanwhile,
banking and neobanks segment is expected to grow the fastest, driven by
challenger banks such as Chime, Varo, and Current targeting tech-dependent
millennials with low fees and high UX.
- In
terms of technology, AI & ML contributed to 75% of market share in
2024, and continue to lead growth via applications in fraud detection,
personalized finance, risk modeling, and chatbots.
- Blockchain
and big data analytics are also gaining traction, enabling secure
transactions, transparent ledgers, and deep consumer insights.
- The compliance
& regulatory support segment held 60% market share in 2024,
underscoring the importance of AML, BSA, GDPR, and CCPA adherence.
- The fraud
monitoring category is expected to witness the highest growth, driven by
rising digital transactions and demand for real‑time security using
AI/behavioral analytics.
- Banks
were the largest end users in 2024 with 65% share, embracing fintech to
modernize operations, enhance user experience, and remain competitive
against challenger banks.
- Insurance
companies are the fastest-growing end-user group thanks to digital
transformation needs, customized policy demands, faster claim processing,
and AI-powered risk assessment.
- Regionally,
the Northeast held a 40% share in 2024 thanks to established financial
hubs like NYC, Boston, and Philadelphia.
- The South
region is the fastest-growing, spurred by rapid population and business
growth in Texas, Florida, and Georgia, presence of fintech hubs in Austin,
Miami, and Atlanta, and opportunities in underserved markets.
- The
U.S. market remains highly fragmented, opening opportunities for both
niche startups and established players leveraging cloud and open‑source
tech.
- Notable
companies include Plaid, Chime, Brex, Stripe, Marqeta, Upstart, Toast,
SoFi, Avant, Hippo, Next Insurance, Lemonade, highlighting the competitive
and diverse nature of the space.
