Global: European Consumers Prefer Card Networks and PayPal for Everyday Apps Over Banks and FinTechs

The rising reliance on apps and connected devices globally has fueled consumer demand for an all-encompassing everyday app seamlessly integrating banking, shopping, and personal activities.

This demand is particularly pronounced in Europe, where nearly 38% of consumers express a strong interest in embracing integrated digital solutions, as detailed in “The Global Appeal of an Everyday App: Focus on Europe,” a PYMNTS Intelligence report.

For these consumers, data security is a paramount concern, aligning with the region’s reputation for stringent data protection regulations like the General Data Protection Regulation (GDPR). Security features such as two-factor authentication and data encryption in a single app are prioritized by consumers, with around one-third of U.K. consumers emphasizing the importance of two-factor authentication. Meanwhile, 27% and 29% of consumers in Italy and Spain, respectively, consider encrypted data a critical security feature.

Diverse security preferences among consumers in different European markets are evident. For instance, less than 10% of French consumers view notifications for data discovered on compromised websites as a crucial security feature, whereas this proportion doubles to 14% in Spain.

Trust in a potential everyday app provider among European consumers is closely tied to their reputation for fraud protection and data security. For 31% of European consumers, reputation is critical in establishing trust. Additionally, substantial shares of consumers in Italy (31%), Germany (31%), and Spain (29%) consider data security and fraud prevention pivotal in building trust with an all-in-one app provider.

In terms of institutions trusted by European consumers to offer an everyday app, PayPal and card networks emerge as top choices, surpassing banks and FinTechs. Approximately 36% of respondents trust PayPal, with 29% trusting card networks. Banks secure third place with 27% consumer trust, and only 12% trust FinTechs to provide an everyday app service. Regional differences exist, with consumers in Germany predominantly trusting PayPal over banks, while those in France express higher trust in banks compared to PayPal.

In essence, the demand for everyday apps integrating banking, shopping, and personal activities is swiftly growing in Europe. To meet this demand, providers must prioritize robust data security features. Building a strong reputation for fraud protection and data security is crucial for gaining consumer trust, a feat institutions like PayPal and card networks appear to have mastered.