FINTECH PAYMENT/SAVINGS APPS — UNITED KINGDOM
By defining and applying a set of criteria to apps available in the UK financial market, we were able to identify four payment apps and one savings app as the most popular currently in the UK. The criteria included market share, retail outlet support, features offered, and support of major financial institutions. Generally, millennials and Gen Z are the highest users of these types of apps.
MOST POPULAR APPS
- With a population of approximately 67 million, the UK is a large potential market for payment and savings apps.
- Uptake of these apps in the UK has been slower than global uptake.
- Contactless credit cards are the first choice of mobile UK consumers. Digital payments with credit cards remain the most popular online choice.
- Gen Z will make up 40% of consumers worldwide by 2020. This group uses mobile payment apps the most out of all generation groups.
- Millennials follow closely behind Gen Z in the uptake of payment apps, including payment wallets.
- Paypal is one of the most popular payment apps in the UK. It boasts over 20 million individual users and 7 million business users.
- A 2019 study by the Ecommerce Foundation showed PayPal is the most popular mobile payment app in the UK. It was used at least once by 40% of UK shoppers.
- No other payment app made the list of most popular payment methods in the UK.
- PayPal has a market share of 59.38% in the UK. 32,214 UK websites offer it as a payment method.
- PayPal is most frequently used by Millennials, with 32% of them using the service. Gen Z was the second most frequent user group, although an exact percentage was not readily available.
- PayPal's use among Gen X, Y, and the Babyboomers was relatively steady at 15%.
2. GOOGLE PAY
- Google Pay is a popular person-to-person payment app in the UK. It can be used at retail outlets. Notwithstanding this, it's market share is only 0.12%.
- It is important to note that the market share in this survey included all digital payment methods, not just payment apps. This explains the relatively small market share.
- It was second only to PayPal in payment app popularity and the only other payment app that appeared in market share data in the UK.
- It is currently available on 803 UK websites. There was no available data on how many physical retailers in the UK offered this payment option.
- One of the reasons for Google Pay's popularity is the ability to make peer-to-peer transactions. Google Pay has announced from 6 September 2019 this option will no longer be available. This is likely to impact on the popularity of the app.
- No data was available from the UK or globally on the number of users of Google Pay by generation, probably due to the commercially sensitive nature of the information. Globally and in the UK, Google Pay is the most popular mobile wallet.
- 48% of Millennials and Gen Z have a mobile wallet in the UK.
- Gen Y in the UK reported 44% as having a mobile wallet.
- 37% of Gen X used mobile wallets in the UK.
- Only 29% of the Baby Boomers in the UK had mobile wallets.
3. MONEY DASHBOARD
- Money Dashboard featured consistently in reviews of the most popular finance apps in the UK.
- One of the advantages of Money Dashboard is that it allows the consumer to manage all their financial accounts from one secure location. This includes savings accounts, a feature that neither PayPal nor Google Pay offers.
- This has the potential to give it a competitive edge, although to date, uptake is still slow.
- It also offers budgeting and financial planning components, which are other unique features.
- As of September 2018, there were over 1 million bank accounts connected to the app, making it the most popular app of this nature in the UK.
- Money Dashboard is only available to UK customers.
- Despite there being no industry data on the usage rates by generation, the pattern of use of other apps suggests it would be most popular among Gen Z and Millennials.
- Paym has the support of all the major banking institutions in the UK. It enables consumers to link their bank accounts to the app and then make payments to their friends and family.
- It is currently second only to Google Pay in the peer-to-peer transfer market. Google Pay's recent announcement that it intends to terminate this service suggests its popularity is likely to increase.
- Paym is a UK based app and is not available globally.
- One of the advantages of Paym is that it does not require the user to download a specific app. The information is incorporated into the banking apps of all the major financial institutions in the UK.
- There is no industry data on the usage rates by generation. The pattern of use of other apps suggests it would be most popular among Gen Z and Millennials.
- Given, it is a UK only app there is no global data to draw generational usage assumptions or conclusions from.
- Chip is different from the other financial apps on this list. It is a savings app, not a payment app.
- It was developed by analyzing over 160 million financial transactions.
- Using, artificial intelligence it analyzes users' financial transactions and calculates how much they can afford to save. Chip then automatically saves this money for the user.
- It is the only financial transaction app of any significance in the UK which offers this service and is supported by all the major financial institutions in the UK.
- Chip is a UK only service.
- Information regarding customer uptake and popularity is limited, due to the commercially sensitive nature of the data. It is listed as the leading savings app on websites and articles, considering the most popular financial apps in the UK.
- In most instances, it is the only saving app that rates a mention in financial and industry-related articles.
- There is no available data available as to generational usage rates.
We researched financial and e-commerce articles and websites to determine what payment and savings apps were being used in the UK and the relative popularity of each. Once we had established the apps that were being used in the UK, we attempted to identify the most popular.
Market share is considered a good indicator of popularity. We searched financial and e-commerce databases to determine the relative market share of each app. Only two apps - PayPal and Google Pay - registered a market share with respect to digital payment methods in the UK. They were, therefore, easily identified as two of the most popular apps. No information was available relating to market share in the payment and saving app market alone. All data included other digital methods of payment. Given that payment apps were represented on the list, we felt this significant enough to include those mentioned on the most popular payment app list.
We then considered the number of retailers offering payment by the various apps and the uptake of these apps by the various banking institutions to determine the other most popular apps. This confirmed PayPal and Google Pay were the two most popular choices among customers.
The types of services consumers were looking for in apps were considered and peer-to-peer transfers consistently rated highly. We then searched various app sites, product data sheets, financial industry research, and publications to identify the apps that offered this service and the popularity of each. This enabled us to identify PayM as one of the most popular financial transaction apps in the UK.
Finally, we considered the number of financial institutions that supported each app by reviewing each of the institution's web pages. We also reviewed industry journals, articles, and blogs to identify the features that consumers were looking for in a financial transaction app. Once we had determined this, we considered the features offered by each app and the financial institutions that supported it. By doing this, we identified several apps that rated highly in using these criteria. To determine the apps that should be considered the most popular, we cross-referenced the apps with e-commerce and financial publications, newsletters, blogs, and research.
Finding information regarding the generational uptake of each of the apps proved more difficult. There was no domestic data available in respect of the apps despite extensively searching various financial databases, websites offering app usage statistics and other research and articles of this nature.
Where an app was available internationally, we searched various e-commerce and financial articles and research to determine the generational breakdown. We felt this data could enable us to draw some broad conclusions concerning the UK market. PayPal was the only app that had specific data in this regard. Given the strong US focus and the strong cultural similarities between the two countries, we had some confidence applying this information to the UK market.
We then considered the uptake of mobile wallets generally in the hope that this would provide us with information regarding generational differences. After reviewing various data, we found good UK data on generational usage rates. We felt confident applying this information to specific mobile wallet apps in the UK, especially given the market share commanded by PayPal and Google Pay. We were less confident in applying this data to the other apps on our list given the sparseness of information around them.
Finally, in an attempt to gauge generational differences, we attempted to ascertain through various financial records, databases, and industry research, the generational breakdown for each of the major financial institutions. We searched similar sources to determine the uptake rates for the apps at each of the major financial institutions. We hoped that we could cross-reference this data and draw some tentative conclusions regarding generational usage rates. Unfortunately, this approach was unsuccessful as the information was not readily available in the public domain. This is likely due to its commercially sensitive nature.