Seema Shah · October 2024
Payment App Innovations: Strategic Moves in the P2P and BNPL Landscape
The P2P payment landscape is evolving, with the international P2P payment app cohort thriving while the domestic cohort faces challenges. Market saturation and competition from fintech solutions like Chime’s Pay Anyone pose significant obstacles for domestic players. To stay competitive, payment apps are innovating to retain users. Sensor Tower data highlights how Venmo’s Groups feature has enhanced the user experience, bolstering retention rates.
Key Takeaways:
In recent years, the international P2P payment app cohort has experienced substantial growth, with a 17% YoY increase in downloads in 3Q23 and an additional 3% bump in 3Q24, highlighting the growing demand for global transactions
In contrast, the domestic P2P payment cohort experienced a 16% YoY decline in download growth over the past two years
Venmo’s Groups feature reduces the need for lengthy app interactions. While the average session duration dropped by 7% YoY in 1Q24, Venmo’s reported total payment volume (TPV) grew by 8% YoY in 1Q24. This demonstrates Venmo’s success in enhancing the user experience by simplifying complex tasks
Leading BNPL providers are revamping their loyalty models to enhance user engagement. Afterpay Plus has improved the payment experience, which led to an increase in the app’s proportion of power users (those opening the app 10 or more days per month), rising from 5.6% in 1Q24 to 6.6% in 3Q24. Meanwhile, Sezzle’s Payment Streaks program, launched in May’24, also boosted its power users, from 4.9% in May’24 to 10.5% in Jun’24
PayPal’s CashPass program utilizes AI to deliver personalized cashback offers, resulting in increased user interaction with partnered brands. For instance, McDonald’s users spent 7% more time on PayPal in 3Q24 compared to 1Q24, while eBay users increased their time spent by 6%
For more information, request the full report from reports@sensortower.com.
