2021-06-01-SensorTower-The_State_of_Mobile_Payment_Apps_in_Europe_45页_5mb

The State of Mobile Payment Apps in Europe: Summary

Core Content

This report provides an analysis of the mobile payment app market in Europe, focusing on digital payment and money transfer apps from Q1 2018 to Q1 2021. It highlights trends in app downloads, growth, and market share across key countries like the U.K., Germany, and Russia.

Main Trends and Observations

Market Growth

• Overall Growth: Digital payment and money transfer apps in Europe saw consistent growth, with total downloads surpassing 30 million in Q1 2021, representing a 32% year-over-year increase.
• 2020 Growth: Full-year 2020 downloads increased by 31% to 102 million, driven by PayPal, Klarna, Western Union, and local Turkish apps Papara and Paycell, which combined added nearly 15.5 million more downloads than in 2019.
• Q1 2021: PayPal led in downloads with 51% of the market share, while Google Pay held 21%, and Klarna 13%.

Geographical Split

• PayPal vs. Google Pay: PayPal dominated Western and Southern Europe (including the U.K., Germany, France, and Italy), whereas Google Pay was more prevalent in Central and Eastern Europe (Poland, Slovakia, the Czech Republic, Ukraine, and Russia).
• Google Pay Decline: Despite being the second most downloaded app in Europe in 2020, Google Pay saw a decline in installs in the U.K., Russia, and Italy. Its market share in Q1 2021 dropped to 21%, while PayPal continued to grow, especially in the U.K. and Germany.

Klarna's Growth

• Klarna experienced significant growth in 2020, with a 47% year-over-year increase to almost 7 million downloads. It was the only buy now, pay later (BNPL) app among the top digital payment apps in Europe.
• Klarna's largest markets were Germany, the U.K., and Sweden, which accounted for nearly 80% of its European downloads in 2020.

Qiwi Wallet and YooMoney

• Qiwi Wallet saw a decline in downloads during the pandemic, with a 16% decrease in 2020 to 1.1 million.
• YooMoney, rebranded from Yandex.Money, maintained a stable market share (around 7%) until Q1 2021, when it slightly decreased.

Money Transfer Apps

• Western Union: Dominated the money transfer market, with 2020 downloads increasing by 51% to 4.3 million, and 2021 Q1 downloads at 42% of the market share.
• Wise: Grew steadily over the years, reaching 25% market share in Q1 2021. It was the second most downloaded app after Western Union.
• Remitly: The fastest-growing money transfer app in 2020, with nearly 350% growth to 1.1 million downloads.
• KoronaPay: Suffered a decline in 2020 (11% decrease to 1.9 million), but showed a 3% growth in Q1 2021.

Key Insights

• PayPal's Dominance: PayPal remained the top digital payment app in Europe, with a strong presence in the U.K. and Germany. It saw substantial growth in 2020, especially in Eastern Europe, with Romania and Ukraine leading in percentage growth.
• Google Pay's Decline: Google Pay's market share in Europe decreased over the years, particularly in the U.K. and Russia, where its growth was negative in 2020.
• Local Apps: Local Russian apps like Qiwi Wallet and YooMoney had a significant market presence, but their growth was limited compared to international apps like PayPal and Wise.
• Pandemic Impact: The pandemic initially caused a dip in downloads for some apps, but it also accelerated the adoption of digital payment solutions, especially in the U.K. and Germany.
• Market Share Shifts: The market share of local Russian apps declined, while international apps like PayPal and Wise gained traction.

Summary of Top Apps

Digital Payment Apps

• PayPal: Dominated the market with 51% of Q1 2021 downloads.
• Google Pay: Held 21% of the market share in Q1 2021.
• Klarna: Ranked third with 13% of Q1 2021 downloads.
• Qiwi Wallet: Experienced a 16% decline in 2020 but remained a key player in Russia.
• YooMoney: Maintained a stable 7% market share until Q1 2021.

Money Transfer Apps

• Western Union: Led with 42% of Q1 2021 downloads.
• Wise: Second with 25% of Q1 2021 downloads.
• Remitly: Fastest-growing app in 2020 with 350% increase.
• KoronaPay: Suffered a 11% decline in 2020 but showed growth in Q1 2021.
• Paysend and Xoom: Also saw strong growth in 2020, with 125% and 114% increases respectively.

Conclusion

The European mobile payment app market experienced robust growth, with PayPal and Google Pay leading the charge. Klarna emerged as a strong BNPL player, while Western Union and Wise dominated the money transfer segment. Local Russian apps faced challenges in maintaining their market share amid the pandemic, but international apps continued to expand their reach and dominance.