The State of Payment Apps

[Pages:40]The State of Payment Apps

-- An Analysis of Payment App Market Trends and Top Apps in the U.S.

The State of Payment Apps:

Introduction

This report is an analysis of payment apps available on the App Store and Google Play. It includes download trends along with rankings of top apps from Q1 2018 through Q1 2021.

Payment apps are further broken out into following subcategories:

Digital Payment: Casual cash transfer apps that enable users to send

money to friends and family, as well as pay businesses for mostly zero fees.

Money Transfer: Apps that focus on international money transfer services,

and enable users to send money and remittances with service fees.

Payment Solution: Apps such as Klarna that offer "buy now, pay

later" (BNPL) installment payments after a purchase.

? 2021 Sensor Tower Inc. - All Rights Reserved

Table of Contents

04 - Market Overview: United States

09 - Digital Payment

19 - Money Transfer Apps

26 - Payment Solution Apps

33 - Conclusion

? 2021 Sensor Tower Inc. - All Rights Reserved

Market Overview: United States

-- An Overview of Payment Apps in the U.S.

Payment Apps Reached a Peak of 35 Million Installs in Q2 2020

U.S. quarterly downloads of top digital payment and money transfer apps

App Store Google Play 40M

35M

+22%

30M

+21%

14M

25M

13M

14M

16M

23%

11M

20M

10M

10M

9M

9M

9M

9M

15M

8M

8M

10M

21M

18M

18M

18M

13M

13M

14M

14M

15M

15M

16M

5M 10M

11M

0

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Market Overview U.S.

5

? 2021 Sensor Tower Inc. - All Rights Reserved

Top digital payment and money transfer apps saw record adoption in Q2 2020, surpassing 35 million downloads and soaring 53 percent year-over-year. As the first federal stimulus checks were issued in the U.S. in April 2020, money transfer services also saw high demand.

Despite the drop in adoption in Q3 2020, digital payment and money transfer apps saw consistent growth quarter-over-quarter. U.S. payment apps are on the rise, kickstarting 2021 with total installs of 34 million in Q1.

Note Regarding Downloads Estimates:

Download estimates are the aggregate downloads of the top 25 digital payment apps in the U.S. from 2018-2020.

The Payment App Space Saw Consistency Among Top App Rankings

Top digital payment and money transfer apps by U.S. downloads on the App Store and Google Play

2018

1

Cash App

Square

2

Venmo

PayPal

3

PayPal

PayPal

4

Zelle

Early Warning Services

5

Google Pay

Google

6

Western Union

Western Union Holdings

7

JPay

JPay

8

Xoom

PayPal

9

MoneyGram

MoneyGram

10

PayRange

PayRange

2019

1

Cash App

Square

-

2

Venmo

PayPal

-

3

PayPal

PayPal

-

4

Zelle

Early Warning Services

-

5

Google Pay

Google

-

6

Western Union

Western Union Holdings

-

7

JPay

JPay

-

8

Xoom

PayPal

-

9

MoneyGram

MoneyGram

-

10

PayRange

PayRange

-

2020

1

Cash App

Square

-

2

Venmo

PayPal

-

3

PayPal

PayPal

-

4

Zelle

Early Warning Services

-

5

Google Pay

Google

-

6

Western Union

-

Western Union Holdings

7

JPay

JPay

-

8

Remitly

Remitly

NEW

9

Xoom

PayPal

-1

10

MoneyGram

MoneyGram

-1

Market Overview U.S.

6

? 2021 Sensor Tower Inc. - All Rights Reserved

Q1 `21

1

Cash App

Square

-

2

PayPal

PayPal

+1

3

Google Pay

Google

+2

4

Venmo

PayPal

-2

5

Zelle

Early Warning Services

-1

6

Western Union

Western Union Holdings

-

7

Remitly

Remitly

+1

8

JPay

JPay

-1

9

MoneyGram

MoneyGram

+1

10

Xoom

PayPal

-1

Payment Solution Apps Surged During Holiday Shopping

U.S. quarterly downloads of top payment solution apps on the App Store and Google Play

App Store Google Play 9M

8M

7M

6M

3.2M

5M

+118%

2.5M

4M

3M

1.5M

1.8M

1.2M

982K

4.6M

2M

+462%

849K

3.7M

1M

460K

2.1M

1.6M

1.7M

1.9M

1.3M

0

83K 138K

171K 264K

187K 319K

613K

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Market Overview U.S.

7

? 2021 Sensor Tower Inc. - All Rights Reserved

Payment solution apps experienced their best quarter ever in Q4 2020 during the holiday season. Adoption of these apps surpassed 7 million downloads for the first time, climbing at a year-over-year rate of 115 percent.

Despite their relatively recent arrival--most entered the U.S. market in 2018 and 2019-- payment solution apps have been growing at an exceptional rate. Led by Klarna, they reached close to 6 million downloads in Q1 2021, soaring 114 percent Y/Y.

Note Regarding Downloads Estimates:

Download estimates are an aggregate of the top 5 payment solution apps in the U.S. from 2018-2020.

Klarna Topped the Payment Solution App Download Charts

Top payment solution apps by U.S. downloads on the App Store and Google Play

2019

2020

Q1 `21

1

Klarna

Klarna Bank

2

Affirm

Affirm

3

Afterpay

Afterpay

4

Quadpay

QuadPay

5

Perpay

Perpay

1

Klarna

-

Klarna Bank

2

Afterpay

+1

Afterpay

3

Affirm

Affirm

-1

4

Quadpay

QuadPay

-

5

Sezzle

NEW

Sezzle

1

Klarna

Klarna Bank

-

2

Afterpay

Afterpay

-

3

Affirm

Affirm

-

4

Quadpay

QuadPay

-

5

Sezzle

Sezzle

-

? 2021 Sensor Tower Inc. - All Rights Reserved

Swedish app Klarna quickly gained popularity in the United States after its first appearance on the U.S. app stores in Q4 2018, and has been the No.1 ranked payment solution app in the U.S. since 2019. Payment solutions apps surpassed 1 million downloads in the U.S. for the first time during the 2019 holiday shopping season, when the top six apps gained 1.2 and 1.5 million downloads in November and December 2019, respectively.

Amid increased financial stress caused by the COVID-19 pandemic, the payment solution space has been on a rise as the "buy now, pay later" concept provided a potentially interestfree alternative to credit card payments. Payment solution app downloads soared 110 percent year-over-year in December 2020.

Market Overview U.S.

8

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