App Annie: Ahead of its Super App Release, PayPal Ranks #2 Among Finance Apps
According to App Annie, the leading mobile data and analytics company, ahead of its super app release, PayPal ranks #2 among finance apps by monthly average users in Q1.
“Super apps” are a concept that allows users to access an entire ecosystem of products and services. With their extended capabilities, they allow customers to purchase products, book appointments, and access services — all within a single platform.
The concept has traditionally been popular in global regions including APAC, but most recently App Annie has seen Western expansion with companies like PayPal announcing plans to launch a super app.
Additionally, iOS 14.5 limitations may provide an impetus to make super apps more prevalent in order to bolster first-party data and offer a more personalized user experience.
Why does this matter?
By integrating new features, super apps can expand and tap into new markets and potential users. For example, App Annie data reveals that many users of fintech apps also use social apps to prioritize both their financial and social well-being.
- In fact, 76% of US PayPal users on iPhones also used Facebook in March 2021.
- Additionally, 38% of US PayPal users on iPhones also used TikTok in March 2021, up from 26% in March 2020.
App Annie’s Performance Score (its newest composite metric) can compare apps from different industries with diverse business models and agnostic of app lifecycle.
- During the week of April 26 – May 1, PayPal and Facebook were tied for their acquisition and engagement scores with a perfect score of 100.
- With respect to sentiment, App Annie sees PayPal outperforms Facebook by 97 to 64. PayPal is poised to leverage this positive sentiment when positioning itself in the super apps space.
When looking at finance apps in the US, PayPal ranked #2 for MAU in Q1, only behind Venmo which PayPal owns.
- APAC has traditionally led the pack of super apps (Grab in SEA, WeChat in China) and Japan’s PayPay ranked #1 among Finance apps in that market this past quarter.
- While Japan is a more cash-centric economy, PayPay has grown in popularity this past year and is on a trajectory to becoming a super app.
- Other important players in the space include D Payment, RPay, and LINE Pay, along with Mercari which has Mer Pay included as a feature in its app and is in partnership with D Payment.
2021 was coined the year of IPO for Korean fintech companies, which has been seen most recently from KakaoPay, the super app where users can make cashless and cardless payments, online and offline purchases, as well as manage their investments.
“It makes sense why both consumers and publishers find the super app model attractive. With their extended capabilities, they allow customers to purchase products, book appointments, and access services — all within a single platform, offering a more seamless experience. With PayPal’s upcoming announcement of its super app, we can expect to see more apps in the future extend their current offerings to meet more needs. And with Apple’s recent iOS 14.5 update that could limit personalization, super apps and expanded brand partnerships could be a valuable way to bolster first-party data and offer a more personalized user experience.” – Lexi Sydow, Head of Marketing Insights, App Annie.