2021-05-31-SensorTower-The_State_of_Payment_App_40页_5mb

The State of Payment Apps: Summary

Core Content

This report provides an in-depth analysis of the U.S. payment app market from Q1 2018 through Q1 2021, focusing on digital payment, money transfer, and payment solution apps. It highlights download trends, market share, and key strategies that influenced the growth of these apps during the pandemic and beyond.

Main Categories and Key Trends

Digital Payment Apps

• Market Growth: Digital payment apps reached a peak of 35 million installs in Q2 2020, with consistent growth throughout the period.
• Top Apps: Cash App and Venmo were leading apps, with Cash App maintaining its position as the most downloaded finance app in the U.S.
• Google Pay Surge: Google Pay saw a significant increase in downloads, especially in December 2020 and Q1 2021, due to a relaunch and marketing efforts. It achieved 3 million downloads in December 2020, representing 263% month-over-month growth.
• Crypto Integration: Many digital payment apps began integrating crypto features, with Cash App being one of the early adopters in 2018. PayPal introduced crypto trading in October 2020 and crypto payments in March 2021.
• Ad Strategy: Google Pay used a combination of advertising and promotions, including a $21 referral reward, to boost its visibility and downloads.

Money Transfer Apps

• Pandemic Impact: Money transfer apps saw a significant boost in adoption during the pandemic, with Western Union and Remitly leading the growth.
• Western Union Dominance: Western Union led in market share, accounting for 33% of money transfer app downloads in Q1 2021. It gained nearly 500K downloads in April 2020, a 49% YoY increase.
• Remitly Growth: Remitly experienced an 89% surge in downloads during the first 60 days of the pandemic and continued to grow, with 33% of its installs coming from the U.S.
• Ad Strategy: Western Union focused on keyword bidding for terms like "exchange rate" and "currency converter," achieving a high share of voice (SOV) in these areas.

Payment Solution Apps

• Rapid Growth: Payment solution apps, such as Klarna and Afterpay, experienced explosive growth, especially during the holiday season. Klarna reached 1.1 million downloads in November 2020.
• Market Leadership: Klarna remained the top payment solution app in the U.S., with a 37% share of downloads in Q1 2021.
• Adaptation to Market: Klarna adapted its marketing strategy to include video creatives and influencer partnerships, targeting younger audiences and emphasizing its features during holiday shopping.
• Strategic Partnerships: Klarna partnered with major retailers like Macy’s, while Afterpay partnered with Shein and Walmart, contributing to their growth and visibility.

Key Information

• Total Downloads: In Q1 2021, the top U.S. digital payment and money transfer apps reached 34 million downloads, up 22% YoY.
• Crypto Adoption: The integration of crypto features in payment apps signaled a shift towards mainstream crypto usage, with Cash App being a pioneer.
• Ad Strategies: Apps like Google Pay and Western Union used targeted advertising and keyword bidding to increase their visibility and downloads.
• ASO Efforts: Klarna focused heavily on App Store Optimization (ASO), particularly through screenshot updates and video campaigns, which helped it maintain its market leadership.

Conclusion

• The U.S. payment app market has seen significant growth and transformation, especially during the pandemic.
• Cash App continues to lead the digital payment space, while Google Pay has emerged as a strong contender with its strategic relaunch and marketing.
• Western Union dominates the money transfer category, and Klarna leads in the payment solution space, indicating a shift in consumer preferences towards more flexible and convenient payment options.
• The integration of cryptocurrency features and the use of innovative advertising strategies are key drivers of growth and market share in the payment app industry.