Nearly 60% of consumers now use money-storing apps, which they use for everything from peer-to-peer (P2P) transfers and retail purchases. Capitalizing on this growing user base requires merchants and banks to understand which apps consumers prefer and the features that make them sticky.
General-purpose apps, such as PayPal, allow consumers to spend their stored funds wherever that app is accepted, while merchant apps can only be used at that specific retailer, as is the case with the Starbucks app. Both types of apps saw significant consumer use in the last year, and their interest will continue to grow if these apps meet their demands.
For “Money-Storing Apps Gain Favor With Consumers,” a PYMNTS and Treasury Prime collaboration, we surveyed 2,289 United States consumers to learn how they use general-purpose and merchant money-storing apps, which apps are preferred, and which institutions they trust to manage them.
• Previous use of money-storing apps is the greatest predictor of future use, with current users being five times more likely than others to continue using them.
Fifty-one percent of consumers who have stored money in apps are interested in doing so in the coming year, compared to just 10% who have not stored funds. This shift is equally drastic among merchant and general-purpose app users, showing that sustained app use significantly increases once consumers use them.
• Rewards increase consumer interest in money-storing apps by 49%.
This is true even for those who have not previously used such apps, emphasizing the importance of adding such features. Previous use shows a staggering increase in interest here as well: 95% of users are interested in continuing their use of general-purpose apps if offered rewards.
• Trust is vital to a successful money-storing app.
Consumer interest in money-storing apps is high, but they want to know they can trust the organization behind these apps. PayPal is the most trusted business in the space, with 60% of consumers citing it as the company they would trust most to handle a money-storing app. Consumers’ primary banks are also a popular option, especially among merchant app users: 59% of this group list their banks as the business they most trust to manage such apps.
Merchants and banks must work toward what consumers want out of money-storing apps if they want to gain more users, and doing so will be vital as their interest grows.
To learn more about how organizations can meet consumers’ demands for convenient, rewarding and safe money-storing apps, download the report.