European Consumers Trust PayPal More Than Banks to Provide an Everyday App

As more bill payments, purchases and subscriptions become parts of household routines, there is a growing desire among consumers for a unified, single, everyday app that smoothly combines banking, shopping and personal activities.

Almost half of consumers in global markets are keen to have a single-service app for their day-to-day commerce and shopping needs, PYMNTS Intelligence found. When choosing a provider of this theoretical app, more consumers prefer PayPal than banks, card network issuers or Big Tech.

PYMNTS Intelligence’s latest study surveyed more than 10,000 consumers across key markets to assess consumers’ demand for an all-in-one app. “The Global Appeal of an Everyday App: Focus on Europe” included the data and insights of consumers from Germany, France, the United Kingdom, Italy and Spain, as well as corresponding consumers from the United States and Australia.

The study found that more than one-third of respondents from European countries expressed strong interest in an app that integrates digital activities for shopping and banking. In all markets reviewed, PayPal emerged as the top choice overall, earning the trust of 36% of respondents, on average. Card networks followed as the second option at 29%, and banks secured the third position at 27%. Technological giants such as Amazon or Google lag behind at 21% and 19%, respectively.

Regional variations also play a role here. For instance, in Germany, consumers tend to trust PayPal more than banks, with 20% preferring the former versus 18% preferring the latter. Conversely, in France, the preference leans toward banks, with 22% favoring them compared to 13% for PayPal. Within the U.S. market, for comparison, PayPal and banks are still the most commonly preferred options, but more Americans tend to trust large tech companies like Google and Apple than their European counterparts.

Breakdown of trust in select institutions among European consumersProviders’ reputations and their ability to protect consumers’ data from fraud are crucial elements for generating trust, which potential everyday app providers need. Data from a separate PYMNTS Intelligence survey showed that 60% of consumers trust PayPal more than banks with stored payment credentials. This supports the idea that data security and fraud protection are the main reasons why PayPal is seen as the best potential provider for everyday apps.

In a new organizational change, PayPal announced this month the division of its business into three different units: consumer, small businesses and large enterprises.

“We are redesigning PayPal with our customers at the center and creating an environment that unleashes our teams to move with speed and build the best possible products and experiences to meet their needs,” PayPal President and CEO Alex Chriss said in a news release at the time.

Although the consumer preference is there, it remains to be seen whether PayPal will emerge as the leader in the race to provide a complete everyday app solution.