Americans frequented top fintech apps to send money to friends, family and businesses.
Following the e-commerce boom in Q2 2020 during COVID-19 induced lockdowns, we’ve seen a continuation of growth in demand for money transfer apps. Total sessions in the top 10 money transfer apps in the US grew 30% quarter over quarter in Q3 2020.
Mobile Apps Are Central to Improving the Customer Experience and Driving the Top Line
Top homegrown money transfer apps in the US by total sessions on Android phones include Cash App, PayPal, Venmo, Zelle and Western Union Money Transfer. Americans engaged more frequently with these apps when sending and receiving money transfers than any others. As socially-distant shopping is here to stay in Q4 and in the new normal of 2021, fintech companies should monitor mobile data trends to strategically capture more of the money transfer market. We spoke with the Head of Digital at Western Union on how mobile is core to their customer experience strategy.
“Mobile plays a critical role in expanding and transforming Western Union's digital offerings, and one of the most important channels for delivering a world class customer experience. We are thrilled and honored to be ranked #5 in the US by total sessions in App Annie's Q3 ranking for money transfer apps."
— Jay Jaffin, Head of Digital at Western Union
Mobile market data is the lifeline of success for fintech companies as they engage with customers. After all, every mobile session is more than a direct potential to generate revenue — it’s an opportunity to delight a customer and drive long term loyalty. As PayPal reported, winning on mobile had a direct impact on their top line.
Finance Apps Need to Look Beyond Their Home Markets for their Product Road Maps
Outside of the US, Finance apps tend to be more advanced, especially in Asia. For instance, in South Korea, peer-to-peer payment app Toss stood out for Gen Z — offering credit, loans, insurance investments and more from multiple financial service providers as a financial gateway on mobile. We also see the blurring of lines in payment functionality — with some messaging and social apps adding payment features. In India, WhatsApp Messenger has just rolled out payment functionality in early November 2020 after receiving governmental approval.
It’s important for fintech providers to pay close attention to other markets — particularly markets like those in APAC that have been very active in fintech innovation — to stay on top of the leading trends and keep an eye on possible emerging competitive features at home.
For more information on the impact of how COVID-19 is reshaping the mobile economy and how businesses should adapt to succeed in this new normal, please see our blog post here: How COVID-19 Has Changed Consumer Behavior on Mobile Forever.
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App Annie is a mobile market estimate service provider. App Annie is not registered in any investment advisory capacity in any jurisdiction globally, and does not offer any legal, financial, investment or business advice. Nothing contained in this communication, or in any App Annie products, services or other offerings, should be construed as an offer, recommendation, or solicitation to buy or sell any security or investment, or to make any investment decisions. Any reference to past or potential performance is not, and should not, be construed as a recommendation or as a guarantee of any specific outcome. You should always consult your own professional legal, financial, investment and business advisors.
November 12, 2020Market Data