![]() ![]() ![]() “As ecommerce in many smaller countries in Europe relies on foreign online stores, domestic payment providers would do well to enable cross-border transactions.”ĭomestic payment providers should enable cross-border transactions. “One reason for PayPal’s success in Europe might be the fact that it is open for payments across borders”, EcommerceDB writes. In 2019, it counted 3,505 daily active users, ranking behind countries such as Turkey (4,835) and the Czech Republic (5,474). PayPal usage in Europe.įinland is the country with the lowest number of daily active PayPal users. A paid subscription is required for full access. In Sweden, there are even four times as many PayPal users as in Finland. Industry-specific and extensively researched technical data (partially from exclusive partnerships). When looking at the data from Airnow, a closer look at the Nordic countries, shows that Sweden has almost twice as many daily active users as Denmark and 2.5 times as many as Norway. Together, they accounted for over two-thirds of the total European ecommerce turnover in 2017. And that’s maybe not a surprise: these three countries are the biggest ecommerce markets in Europe. The top three is completed by France, with more than 96,000 people using the payments app per day. To access NielsenIQ BASES' global report on the drivers of mobile payment choice, click here.Germany ranks second with over 312,000 daily active users of the PayPal app in 2019. The company now enables its customers to buy (or invest in) cryptocurrencies and use them to make purchases.īut overall, PayPal finds itself in a new position-playing defense instead of offense in the mobile payments war. PayPal gained 10 million user accounts following its acquisition of Honey in January 2020. On the consumer side, PayPal has made some smart moves. How many people use PayPal Download as image. In its February 2021 investor presentation, the company discussed its plans to build a “comprehensive” merchant platform. It’s a reason why the company is talking about becoming a “super app.” A PayPal super app has little to do with meeting consumer needs or demands and everything to do with fending off the competition for both consumers’ and merchants’ relationships.Īs competitors like Square, Shopify, and Stripe build out their support capabilities across the spectrum of merchants’ value chain, the networks or platforms PayPal’s competitors are building threaten to squeeze PayPal out of the picture. This all adds to up to a chipping away at PayPal’s mobile payments dominance. In addition, Square-whose users’ payment frequency is roughly the same as PayPal’s -is rapidly growing both its user base and merchant network. As that activity increases, online payment activity will shift from PayPal to the merchants’ apps. In any given week, Americans have roughly $3.2 billion sitting in 10 of the leading merchants’ mobile apps. Three-quarters of consumers with a smartphone have at least one merchant’s mobile app installed on their device. ![]() ![]() In-Network Payments Will Erode PayPal’s Payment Volume It seems very unlikely that PayPal will open its digital wallet to its BNPL competitors. PayPal’s competitors’ share is likely to continue to grow as they continue to build out a strong presence in the US-but also because consumers can use their services within the Apple Pay and Google Pay apps. Buy Now, Pay Later Use is Exploding in the USĪlthough PayPal’s BillMeLater service was one of the first (if not the first) digital buy now, pay later (BNPL) service available in the US, newer entrants like Affirm, Klarna, AfterPay, and FuturePay have impinged on PayPal’s dominance in the space.Ī study from Cornerstone Advisors estimated that PayPal still had 36% market share of the US BNPL market in 2020, but that the four competitors above captured 46% of the market.Īn unpublished projection from Cornerstone estimates that BNPL-related retail purchases in the US will grow from roughly $24 billion in 2020 to roughly $100 billion in 2021. Strong interest in these features-and the addition of true checking account capabilities built in to Google Pay-will drive adoption and use over the next few years, likely at the expense of PayPal and even Apple Pay. Interest in new Google Pay features Source: Cornerstone Advisors ![]()
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