Let’s take a look at the most popular payment apps during the pandemic
Sykes, a business outsourcing company, conducted a study according to which certain trends of the increasing popularity of payment apps were seen ever since COVID-19 made it to the US.
These trends aligned with the start of lockdown all around the States with stay-at-home ordinances, which began in March of 2020. The study found the largest spike immediately after the nationwide closure of businesses from March to April. During this time period, a 13.47% total month over month increase in downloads of payment apps was found.
A major role in this trend was played by the fact that the majority of the banks ceased in-person services and the consumers were left with no other choice other than to use payment apps and similar remote payment methods as a gateway to make their day to day transactions.
For this analysis, the trend of app downloads for big fintechs was studied including Cash App, Google Pay, Paypal, Venmo, and Zelle while other traditional banking and social media messaging apps were excluded from this study.
In the analysis, it was noted that the two peak COVID-19 lockdown months of March and April were when Cash App was ahead of the others in popularity and downloads (7,028,280 downloads). During the same duration, Venmo saw the most percentage growth (25.97%) among them.
The study also conducted a survey which showed that 1 in every 3 consumers have downloaded a contactless payment app this year. The uprise in the popularity and increasing downloads of such payment apps show that the consumers are now looking for both convenience and safety more than ever.
We’ve reported that 2020 has been a bad year for service providers, with the most impact on the onboarding process.