EU Consumers Say They’d Rather Card Networks Than Banks Deliver Their Everyday App

shopper with phone

Globally, the increasing reliance on apps and connected devices has led to growing consumer demand for an everyday app that seamlessly integrates banking, shopping and personal activities.

This demand is particularly strong in Europe, where nearly 38% of consumers express a strong interest in embracing integrated digital solutions, per findings 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, and they view an everyday app in the same light. In fact, the need for secure everyday apps comes as little surprise considering the region’s reputation for stringent data protection regulations like the General Data Protection Regulation (GDPR) and the high value its consumers place on robust data privacy and security measures.

Specifically, consumers in the region prioritize robust security features such as two-factor authentication and data encryption in a single app, with approximately one-third of U.K. consumers emphasizing the importance of two-factor authentication, while 27% and 29% of consumers in Italy and Spain, respectively, viewing encrypted data as a critical security feature.

European consumers trust for app

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

Similarly, 14% of consumers in the U.K. and Germany, as well as 19% of those in Spain consider seeking permission before sharing data with third parties paramount. Recognizing these regional disparities in security preferences is essential for customizing security features that align with specific consumer segments.

The study also found that consumer trust in a potential provider of an everyday app revolves around their reputation for fraud protection and data security. This holds true for 31% of European consumers, who consider reputation as critical to establishing trust in an everyday app provider. Additionally, significant shares of consumers in Italy (31%), Germany (31%) and Spain (29%) view data security and fraud prevention as pivotal to building trust in a potential all-in-one app provider.

When it comes to institutions that European consumers trust to offer an everyday app, PayPal and card networks emerged as their overall top choices, edging out banks and FinTechs.

Approximately 36% of respondents trusted PayPal, while 29% trusted card networks. Banks came in third place with 27% of consumer trust and only 12% trusted FinTechs to provide an everyday app service. Here, too, regional differences exist, with consumers in Germany predominantly trusting PayPal over banks, while those in France have a higher trust in banks compared to PayPal.

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