Digital Payment Apps Primarily Led by Banks (E.G., Sberbank in Russia, Digitale Karten in Germany, TWINT in Switzerland) Have Been Excluded from This Report

The State of Payment Apps in Europe: Introduction

This report is an analysis of payment apps available on the App Store and Google Play. It includes download trends along with rankings of top apps from Q1 2018 through Q1 2021.

Payment apps are further broken out into following subcategories: Digital Payment: • Casual cash transfer apps that enable users to send money to friends and family, as well as pay businesses for mostly zero fees. • Payment solution apps that offer "buy now, pay later" (BNPL) installment payments after a purchase. Digital payment apps primarily led by banks (e.g., SberBank in Russia, Digitale Karten in Germany, TWINT in Switzerland) have been excluded from this report. Money Transfer: • Apps that focus on international money transfer services and enable users to send money and remittances with service fees. © 2021 Sensor Tower Inc. - All Rights Reserved

Table of Contents

04 - Market Overview: Europe 10 - Digital Payment Apps 18 - Money Transfer Apps 25 - Market Overview: U.K. 30 - Market Overview: Germany 34 - Market Overview: Russia 38 - Conclusion Market Overview: Europe — An Overview of Payment Apps in Europe © 2021 Sensor Tower Inc. - All Rights Reserved

Payment Apps Surpassed 30 Million Installs in Q1 2021 Quarterly downloads of top digital payment and money transfer apps in Europe

Google Play App Store Digital payment and money transfer apps saw 40M consistent quarter-over-quarter growth in Europe, surpassing 30 million downloads in Q1 2021, a 32 percent increase year-over-year.

30M +32% Full-year 2020 downloads were up 31 percent year-over-year to 102 million. 10M 9M +30% 7M PayPal, Klarna, Western Union, and local Turkish 7M 20M 6M 6M apps Papara and Paycell drove most of the +34% 5M absolute growth in 2020. All these apps 5M 5M 5M combined added nearly 15.5 million more 4M downloads in 2020 versus 2019. 4M 4M 10M 20M 21M 18M 16M 17M 17M 14M 13M 13M 13M 10M 9M 9M Note Regarding Downloads Estimates: Download estimates are the aggregate downloads of the top 50 0 payment apps in Europe between Q1 2018 and Q1 2021.

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

PayPal and Google Pay Topped the Payment App Download Charts Top digital payment and money transfer apps by downloads in Europe on the App Store and Google Play * Yandex.Money rebranded as YooMoney in 2020. YooMoney’s installs in 2020 include both versions.

2018 2019 2020 1Q21

PayPal Google Pay +1 PayPal +1 PayPal 1 PayPal 1 Google 1 PayPal 1 PayPal -

Google Pay PayPal -1 Google Pay -1 Google Pay - 2 Google 2 PayPal 2 Google 2 Google

Qiwi Wallet Qiwi Wallet - Klarna +1 Klarna - 3 Qiwi Wallet 3 Qiwi Wallet 3 Klarna Bank 3 Klarna Bank

Klarna Klarna - Qiwi Wallet -1 Papara +4 4 Klarna Bank 4 Klarna Bank 4 Qiwi Wallet 4 Papara

Yandex.Money Yandex.Money - Western Union +1 Qiwi Wallet -1 5 Yandex 5 Yandex 5 Western Union 5 Qiwi Wallet

Western Union Western Union - YooMoney* -1 Western Union -1 6 Western Union 6 Western Union 6 Sberbank 6 Western Union

Paycell KoronaPay +2 Paycell +1 YooMoney -1 7 Turktell Bilism Servisleri 7 KoronaPay 7 Turktell Bilism Servisleri 7 Sberbank Swish Papara Paycell -1 NEW MTS Money + 4 8 Getswish 8 Turktell Bilism Servisleri 8 Parara 8 MTS Bank KoronaPay MTS Money Wise Paycell 9 KoronaPay 9 MTS Bank +1 9 Wise +1 9 Turktell Bilism Servisleri -2

MTS Money Wise NEW KoronaPay MoneyGram NEW 10 MTS Bank 10 Wise 10 KoronaPay -3 10 MoneyGram

PayPal and Google Pay Split Europe Into Two Camps Countries where PayPal and Google Pay were the top payment apps in 2020

Showing PayPal and Google Pay’s 2020 download Google Pay data on a map reveals a marked geographical split between the two top payment apps. PayPal PayPal ranked as the top payment app across Western and Southern Europe, including the U.K., Germany, France and Italy.

Conversely, Google Pay was the No. 1 payment app by downloads in parts of Central and Eastern Europe, such as Poland, Slovakia, the Czech Republic and Ukraine. Google Pay was also the top payment app in Russia (its biggest European market by downloads), although installs in 2020 declined on a year-over-year basis.

Google Pay Installs Decreased in the U.K., Russia, and Italy Google Pay downloads and year-over-year growth by country in 2020

While Google Pay was the second most downloaded payment app across Europe* in 2020, its growth varied among countries:

Google Pay installs decreased 6 percent year- over-year in the U.K. and in Russia, Google Pay’s biggest market in Europe by downloads in 2020, installs fell 2 percent. The app also saw a smaller 1 percent decrease in downloads in Italy.

Conversely, installs grew almost 50 percent year-over-year in France and 18 percent in Germany. While Google Pay achieved healthy levels of growth in those markets, installs were still behind those recorded by PayPal.

*Google Pay expanded into a number of European countries in November 2020, which haven’t been included in this analysis

PayPal Saw Substantial Install Growth Across the Continent PayPal downloads and year-over-year growth by country in 2020

PayPal saw substantial install growth across Europe in 2020, with many markets growing over 29% 191% 50 percent year-over-year.

Eastern European markets such as Romania and Ukraine saw the most significant increases in downloads, although starting from a smaller base than other countries in the continent. Installs in Romania grew a 191 percent to 365K, whereas in Ukraine, installs grew 156 percent to nearly 600K.

In Germany, PayPal’s largest market in Europe by downloads in 2020, installs grew 45 percent year-over-year to more than 5.6 million. In the U.K., PayPal second largest market in Europe, downloads were up 34 percent to 4.2 million, while in France, they climbed 66 percent year- over-year to 3.1 million.

PayPal Boomed, While Google Pay Remained Behind Monthly Europe downloads of top digital payment apps

3M PayPal and Google Pay were trending closely in COVID-19 Outbreak 2019, but when a higher number of COVID-19 PayPal cases emerged and lockdowns started to be enforced across Europe in March 2020, the two apps began to diverge significantly. 2M PayPal experienced a surge in installs while Google Pay downloads declined in early 2020. PayPal installs went from 1.5 million in January to 1.9 million in April, while Google Pay went from Google Pay 1M 1.6 million to 1 million during the same period.

Klarna While this pattern was present in many Qiwi Wallet European countries, it was more pronounced in YooMoney certain markets (U.K., Italy, and France) than

0 others (Germany).

Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21

Klarna Downloads Climbed 47% in 2020 to Almost 7 Million Monthly Europe downloads of top digital payment apps

3M Sweden-based app Klarna saw a consistent COVID-19 Outbreak quarter-over-quarter increase in installs, a PayPal trend that made it the only buy now, pay later app among the top digital payment apps in Europe.

2M The app saw a 47 percent year-over-year increase in downloads in 2020 to almost 7 million and reached a record 2 million downloads in Q1 2021 alone, paving the way for another year of solid growth in Europe. Google Pay 1M

Klarna Despite the impressive growth figures, Klarna did not grow evenly across the continent: Germany, Qiwi Wallet the U.K., and Sweden made up almost 80 YooMoney percent of its European downloads in 2020.

0 However, Klarna’s official expansion into the French market in June 2021 might change this Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Mar-19 May-19 Sep-19 Nov-19 Mar-20 May-20 Sep-20 Nov-20 Mar-21 distribution in the coming months.

Qiwi Wallet Saw a Decrease in Installs Amidst the Pandemic Unlike other digital payment apps in Europe, Monthly Europe downloads of top digital payment apps Russian local payment apps Qiwi Wallet and YooMoney did not experience a boost in adoption during the COVID-19 pandemic.

3M Qiwi Wallet lost more than 1 million downloads COVID-19 Outbreak PayPal in 2020, a 16 percent decrease from the previous year. Conversely, YooMoney grew almost 40 percent, but the spike in downloads was at least partially driven by users shifting from its old, 2M unsupported app to the new YooMoney app.

1M Google Pay 1M 800K Klarna 600K Qiwi Wallet 400K YooMoney

Users start to switch from old to new app before it is phased out 0 200K

Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 0

Jan-19Mar-19May-19Jul-19Sep-19Nov-19Jan-20Mar-20May-20Jul-20Sep-20Nov-20Jan-21Mar-21

PayPal’s Share of Downloads Continues to Increase Proportion of Europe installs among top five digital payment apps

100%

21% Google Pay 27% 29% PayPal accounted for the largest share of 34% downloads among the top digital payment apps

75% 9% Qiwi Wallet in Q1 2021, at 51 percent. This was a 10 percentage point increase compared to 2020 and 11% 13% Klarna 22% reflected a trend that has seen PayPal increasing 17% its market share in the last few years. 12% 6% YooMoney 50% 8% Conversely, Google Pay's share of downloads 10% 7% 7% has trended downwards in the past several 7% years, accounting for 21 percent of the market share in Q1 2021. Although its share size 25% 51% PayPal decreased year-over-year, Google Pay remained 41% 36% well ahead of Klarna, which accounted for 13 33% percent of the Q1 2021 downloads among the top five apps.

2018 2019 2020 Q1 2021

The Share of Local Russian Wallets is Shrinking Proportion of Europe installs among top five digital payment apps

100%

21% Google Pay 27% 29% 34% Qiwi Wallet’s share of downloads saw a year- 75% 9% Qiwi Wallet over-year decline in each of the last few years, from 22 percent in 2018 to 17 percent in 2019 and 11% 13% Klarna 22% 11 percent in 2020. Overall, the app’s share 17% declined by 11 percentage points between 2018 12% 6% YooMoney 50% and 2020. 8% 10% 7% 7% YooMoney’s market share remained stable at 7% around 7 percent from 2018 to 2020 before decreasing slightly in the first quarter of 2021. 25% 51% PayPal 41% 36% 33%

2018 2019 2020 Q1 2021

The Month of June Saw the Strongest Growth in 2020 Year-over-year download growth for top five digital payment apps in 2020

2019 2020 Y/Y Growth Early COVID-19 Growth 7M +23% 6M +23% The month of June saw the most robust growth +27% 1.1M +32% +47% +17% +19% +18% 1.0M among the top digital payment apps in 2020. 5M +43% +22% +17% +24% 1.1M 680K 773K 737K Downloads were up 47 percent from the 4M 1.1M 793K 623K 877K 1.5M 1.3M previous month to 4.7 million. 3M 5.0M 4.6M 2M 4.0M 4.0M 4.0M 4.0M The increase in installs coincided with the easing 3.5M 3.6M 3.7M 3.6M 3.1M 3.2M 1M of lockdown measures and the reopening of many businesses across European countries. 0

Apr Jul Oct Jan Feb Mar May Jun Aug Sep Nov Dec While downloads continued to grow during the Growth Rate of Top Payment Apps, Growth Rate of Top Payment Apps, first few months into the pandemic, not all the Including Google Pay Excluding Google Pay apps contributed to the same extent. Excluding 60% 60% Google Pay from the group significantly 50% 50% +40% changes the growth trend, with downloads 40% 40% +35% +24% growing 35 and 40 percent, respectively, in 30% 30% +17% April and May, compared to just 17 and 24 20% 20% percent when Google Pay is included in the top 10% 10% five group. 0% 0%

Mar Apr May Jun Jul Mar Apr May Jun Jul

Cash App Is the Fastest Growing Digital Payment App Top five fastest growing digital payment apps in 2020 by Europe downloads

U.S.-focused Cash App was the fastest growing digital payment app in Europe in 2020, Cash App 228% growing almost 230 percent versus the previous year. The increase came entirely from the U.K., which represented 100 percent of its European Papara 223% market.

Local Turkish digital payment apps held two of Verse 206% the top five spots, with Papara in the second position and Paycell closing the list as the fifth fastest growing app by downloads. Papara Waylet 96% and Paycell were also the only two apps that made it into the 2020 ranking chart by overall downloads (see page 6). Paycell 89% The other apps in the top five by growth 0% 50% 100% 150% 200% 250% included Verse and Spain-focused Waylet.

Western Union Led Growth for Top Money Transfer Apps Monthly Europe downloads of top money transfer apps

600K Western Union’s leadership position strengthened COVID-19 Outbreak with the start of the COVID-19 pandemic, with 2020 downloads up 51 percent year-over-year 500K to 4.3 million.

400K This was 2.1 million higher than the second most Western Union downloaded money transfer app in Europe, Wise. While Wise seemed to regain ground during the 300K second half of 2020, the gap between the two apps showed signs of widening again in Q1 2021. 200K Wise

KoronaPay Although Western Union was the market leader by a comfortable margin in key continental 100K WorldRemit markets like France, Germany, Italy and Spain, in the U.K., Western Union was just slightly ahead Xe 0 of Wise by the number of installs in 2020 (see U.K. section beginning on page 25). Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21

KoronaPay Saw Fewer Installs in 2020, But a Promising 1Q21 Monthly Europe downloads of top money transfer apps

600K KoronaPay saw 230K fewer downloads in 2020 COVID-19 Outbreak than in 2019, an 11 percent decrease year-over- year to 1.9 million. 500K

The app is heavily focused on the Russian market 400K (71 percent of its global downloads in 2020 were Western Union from Russia, followed by Kazakhstan at 6 percent). KoronaPay expanded its money transfer 300K services to a host of European countries in May 2020 where, until then, local users could only 200K Wise receive but not send money.

KoronaPay Q1 2021 data showed a potential reversal of the 100K WorldRemit downward trend, with downloads up 3 percent quarter-over-quarter. Xe 0

Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21

WorldRemit Remained Ahead of Xe During the Pandemic Monthly Europe downloads of top money transfer apps Xe’s installs were down at the start of the COVID-19 pandemic, continuing a downward trend that had started in the summer of 2019. The app saw 370K fewer downloads in 2020 compared 600K to the previous year (a 36 percent decrease). COVID-19 Outbreak

500K WorldRemit saw a 16 percent increase in total downloads to 1.1 million (although a significant part of the increase occurred in the first few 400K months of the pandemic). Western Union

300K

150K 200K Wise

KoronaPay 100K 100K WorldRemit

Xe 50K 0

Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 0

Jan-19Mar-19May-19Jul-19Sep-19Nov-19Jan-20Mar-20May-20Jul-20Sep-20Nov-20Jan-21Mar-21

Western Union and Wise Control Almost 70% of Downloads Proportion of Europe installs among top five money transfer apps

100%

16% 18% 21% 25% Wise Western Union accounted for the largest share

7% of downloads among the top money transfer 11% 75% apps in Q1 2021, at 42 percent of the total. This 11% 9% WorldRemit 17% was equal to its market share in 2020 but 8 12% 6% 6% Xe percentage points higher than 2018 and 2019.

19% While still behind Western Union, Wise’s share of 50% 18% KoronaPay 26% 25% downloads has also trended upwards in the last few years, reaching 25 percent of the market share in Q1 2021.

25% Taken together, Western Union and Wise 42% 42% Western Union controlled 67 percent of the installs of the top 34% 34% money transfer apps in Q1 2021.

2018 2019 2020 Q1 2021

Western Union Drove the Majority of Growth in Spring 2020 Year-over-year growth of top five money transfer apps in 2020

2019 2020 YoY Growth Early COVID-19 Growth 1.2M +60% +33% 1M The months of March, April, and May saw the +18% +26% +30% 256K +6% +9% +14% +7% 398K +14% strongest growth of 2020 among the top money 49K49K 73K 56K 800K 200K 130K 180K 106K +11% 98K transfer apps. Growth peaked in April when 67K +9% 600K 52K downloads went up 60 percent compared to the previous year to 1.1 million. 400K 778K 785K 781K 734K 730K 777K 674K 664K 689K 701K 622K 576K 200K The surge in installs coincided with the beginning of the pandemic in Europe and the 0 enforcement of strict lockdown measures across Jul Jan Feb Mar Apr May Jun Aug Sep Oct Nov Dec most of the continent. Growth Rate of Top Money Transfer Apps, Growth Rate of Top Money Transfer Apps, including Western Union Excluding Western Union While downloads rocketed up in the first few 70% +60% 70% months of the pandemic, not all the apps 60% 60% 50% 50% contributed to the same extent. Excluding 40% 40% Western Union from the group significantly +24% 30% 30% deflated the growth, with downloads growing 20% 20% just 24 percent in April, compared to 60 percent 10% 10% when Western Union is included in the top five. 0% 0%

Mar Apr May Mar Apr May

Remitly Was the Fastest Growing Money Transfer App in 2020 Top five fastest growing money transfer apps in 2020 by Europe downloads

Remitly was the fastest growing money transfer app in 2020, growing almost 350 Remitly 347% percent versus the previous year.

Paysend and Xoom came next, with 125 and 114 Paysend 125% percent growth, respectively.

MoneyGram ranked No. 4, growing almost 100 Xoom 114% percent year-over-year.

Western Union, which grew 51 percent year- MoneyGram 96% over-year, was the only app among the fastest growing apps to also be part of the top five money transfer apps by overall downloads in Western Union 51% 2020 (see page 6).

0% 50% 100% 150% 200% 250% 300% 350% 400%

Payment Apps Reached Nearly 2.4 Million Installs in Q1 2021 Quarterly downloads of top digital payment and money transfer apps in the U.K.

Google Play App Store Top digital payment and money transfer apps 3M saw consistent quarter-over-quarter growth in the U.K., reaching nearly 2.4 million downloads in Q1 2021, a 21 percent increase +21% year-over-year.

2M Full-year 2020 downloads were up 30 percent +40% year-over-year to 8.4 million. 1.1M 1.2M 870K 1.0M 945K 786K +41% With 4.2 million installs, PayPal accounted for 50

643K percent of U.K. downloads in 2020 (among the 573K 567K 553K top five apps). 1M 476K

419K 425K 1.2M 1.1M 1.1M 1.1M 1.2M 1.2M 947K 823K 853K 733K 807K 538K 590K Note Regarding Downloads Estimates: Download estimates are the aggregate downloads of the top 5 0 payment apps in Europe from 2018-2020.

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

PayPal Installs Went Up 34% Amid the Pandemic Monthly downloads of top digital payment and money transfer apps in the U.K.

600K Similar to other European markets, PayPal COVID-19 Outbreak experienced a significant surge in its U.K. installs during the COVID-19 pandemic. The app saw a 34 500K percent increase in adoption in 2020 to 4.2 million and recorded 1.3 million downloads in Q1 PayPal 400K 2021 only, up 12 percent versus Q4 2020.

PayPal, which in 2020 generated 18 percent of its 300K European downloads in the U.K., launched a buy now, pay later service in Q4 2020 called “Pay in 3”, 200K in direct competition with Klarna. Klarna

100K Google Pay

Wise

Western Union 0

Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21

Klarna Installs Surged 83% to 1.8M in 2020 Monthly downloads of top digital payment and money transfer apps in the U.K.

600K In 2020, the U.K. was the second largest market COVID-19 Outbreak for Klarna (it accounted for 27 percent of the app’s European downloads) behind Germany and 500K ahead of Sweden.

PayPal 400K The app experienced a surge in downloads in the fall of 2019 and then a series of quarterly increases that helped it secure its position as 300K the leading buy now, pay later app in the country. 200K Klarna The app saw an 83 percent year-over-year increase in downloads in 2020 to 1.8 million 100K Google Pay while recording 450K downloads in Q1 2021, down Wise 16 percent versus the previous quarter. Western Union 0

Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21

Western Union Saw Almost 100K More Installs in 2020 Both Wise and Western Union trended slightly Monthly downloads of top digital payment and money transfer apps in the U.K. upward during the pandemic while remaining close to each other in overall downloads.

Western Union experienced a spike in the 600K number of installs at the beginning of the COVID-19 Outbreak pandemic (March to April downloads were up 70 500K percent versus the previous two months) but saw a decline during the summer months. Conversely,

PayPal Wise saw a more modest increase at in the first 400K few months of the pandemic but it then regained ground, surpassing Western Union in Q1 2021.

300K

60K

200K 50K

Klarna 40K

100K Google Pay 30K

Wise 20K

Western Union 0 10K

0 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21

Jan-19Mar-19May-19Jul-19Sep-19Nov-19Jan-20Mar-20May-20Jul-20Sep-20Nov-20Jan-21Mar-21

Payment Apps Surpassed 3.4 Million Installs in Q1 2021 Quarterly downloads of top digital payment and money transfer apps in Germany

Google Play App Store Top digital payment and money transfer apps 4M saw consistent quarter-over-quarter growth in Germany, approaching 3.5 million downloads in Q1 2021, a 71 percent increase year-over-year.

+71% 3M Full-year 2020 downloads were up 45 percent 1.5M year-over-year to 10.1 million. PayPal

1.3M accounted for 56 percent of downloads in Germany in 2020 with 5.7 million installs.

2M +27% 1.0M 1.1M

+49% The App Store’s share trended slightly 815K 763K

616K upwards in the last few years, from 37 percent 607K 567K 657K of the total in 2018 to 38 percent in 2019 to 42 491K 1M 439K 1.9M percent in 2020. 447K 1.7M 1.5M 1.4M 1.2M 1.3M 1.1M 998K 1.0M 1.0M 782K 866K 632K Note Regarding Downloads Estimates: Download estimates are the aggregate downloads of the top 5 0 payment apps in Europe from 2018-2020.

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

PayPal Strengthened its Leadership Position, Surging 45% Monthly Europe downloads of top digital payment apps in Germany

800K PayPal PayPal experienced a surge in installs in 2020, COVID-19 Outbreak while Google Pay downloads grew more modestly in the same period.

600K In 2020, PayPal installs were up 22 percent to 870K in the March to April period compared to between January and February. The app saw a 45 percent increase in 2020 to 5.7 million and a record 2.2 400K million downloads in Q1 2021, up 20 percent

Klarna from Q4 2020.

200K Google Pay saw an 18 percent increase in downloads in 2020 to a record 1 million Google Pay downloads. However, in Q1 2021, the app’s Western Union downloads were down 14 percent quarter-over- Paydirekt 0 quarter to 215K.

Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21

Klarna Was No. 2 Payment App in Germany in 2020 Monthly Europe downloads of top digital payment apps in Germany

800K PayPal In 2020, Germany was the most important COVID-19 Outbreak European market for Klarna (it accounted for 39 percent of the app’s European downloads in 2020) ahead of the U.K. and Sweden*. 600K

The app saw a 61 percent increase in downloads in 2020 to 2.6 million and recorded 873K downloads in Q1 2021, up 11 percent versus the 400K previous quarter.

Klarna

200K

Google Pay

Western Union

Paydirekt 0 * Worldwide, the U.S. remains the most important market for Klarna.

Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21

Payment Apps Reached 5.1 Million Installs in Q1 2021 Quarterly downloads of top digital payment and money transfer apps in Russia

Top digital payment and money transfer apps Google Play App Store 6M +8% in Russia showed mixed results in 2020 and -8% early 2021, with downloads falling at the 658K 648K 608K 969K beginning of the COVID-19 pandemic before 5M rising again in Q4 2020. 674K +29% 835K 783K 710K 576K 590K Overall, 2020 downloads for the top apps 4M 740K were down 3 percent year-over-year to 20.6 758K million. 706K Q1 2021 downloads were down 12 percent 3M quarter-over-quarter and 8 percent year-over- 5.1M 5.0M 4.9M 4.8M year to 5.1 million. 4.4M 4.2M 4.2M 4.2M 2M 4.1M 4.0M 3.5M While Google Pay downloads were down two 3.2M 3.1M percent year-over-year in 2020, with 7.9

1M million total installs, the app was still the most downloaded in the country. Note Regarding Downloads Estimates: Download estimates are the aggregate downloads of the top 5 0 payment apps in Europe from 2018-2020.

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Downloads for Top Payment Apps Converged in Q1 2021 Monthly Europe downloads of top digital payment apps in Russia

1M The two biggest digital payment apps in Russia— COVID-19 Outbreak Google Pay and Qiwi Wallet—both saw a decrease in the number of downloads in 2020. 800K Google Pay installs were down 2 percent year- over-year to 7.9 million, while Qiwi Wallet installs decreased 16 percent to 5.9 million. 600K Google Pay downloads in March to April 2020 Google Pay were down 28 percent compared to the previous Qiwi Wallet 400K two months, whereas Qiwi Wallet downloads MTS Money decreased 10 percent during the same period. The downward trend showed signs of a potential YooMoney 200K slow down for Qiwi Wallet in Q1 2021. KoronaPay Q1 2021 also saw the emergence of MTS Money

0 as the third most downloaded digital payment app in Russia with almost 1 million installs. Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21

Yandex.Money’s New App Drove a Large Spike in Downloads Monthly Europe downloads of top digital payment apps in Russia

1M After having been acquired by Sberbank, COVID-19 Outbreak Yandex.Money went through a rebranding completed in December 2020 and launched a 800K new app called YooMoney.

Users switching from the old to the new app 600K were likely behind the large spike in downloads recorded between the months of November and Google Pay December 2020. Qiwi Wallet 400K MTS Money While Q4 2020 downloads totaled a record 1.6 million, installs in Q1 2021 were significantly lower YooMoney 200K at 900K and much closer to the first three quarters KoronaPay of 2020 (the average for the first three quarters was 690K downloads).

Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21

Conclusion: Overall

1. The top European digital payment and money transfer apps gained 29 million downloads in Q1 2021, soaring 29 percent year-over-year.

● 2020 was a strong year for digital payment and money transfer apps in Europe, with app installs increasing nearly 30 percent year-over-year to over 100 million. This continued an upward trend in recent years, with 2020 installs up 71 percent compared to 2018.

● Alongside a number of more global apps, the top payment app landscape in Europe was characterized by a host of local-focused apps, particularly in Russia and Turkey. In 2020, 5 out of the 10 top payment apps in Europe had the bulk of their downloads from one of those two countries. With some of these apps expanding operations across Europe, competition in the payment space is likely to intensify.

● PayPal and Google Pay dominated the European continent as the most downloaded apps in 2020. Our analysis also showed a marked geographical split between PayPal (strongest in Western Union) and Google Pay (strongest in parts of Central and Eastern Europe), although different growth rates in some of these countries might alter the picture in the medium-term.

Conclusion: Digital Payments

2. The growth of the digital payment space was driven by PayPal, while Google Pay saw mixed results during 2020.

● 2020 was an exceptional year for PayPal, with the app growing everywhere in Europe and posting double or triple-digit growth figures in many Eastern European markets. Conversely, while Google Pay retained its position as the second most downloaded app in Europe behind PayPal, its installs declined in some markets (such as Russia, the U.K., and Italy), particularly at the beginning of the pandemic.

● Within the digital payment space, payment solution apps were dominated by Swedish app Klarna, with almost 7 million downloads in 2020. Nevertheless, other leading payment apps, such as PayPal, are entering the buy now, pay later space, with competition expected to increase in the future.

● Cash App was the fastest-growing digital payment app in 2020, with the U.K. representing 100 percent of its European market. Local Turkish digital payment apps hold two spots, with Papara in the second position and Paycell closing the list as the fifth fastest growing app by downloads. Other fast growing apps in 2020 included Verse and Spain- focused Waylet.

Conclusion: Money Transfer and Payment Solutions

3. Western Union led the European money transfer app space in 2020, with downloads up 51 percent to 4.3 million.

● Western Union was the leading money transfer app in Europe, significantly ahead of the second most downloaded app, Wise, which had 2.1 million fewer downloads in 2020. Western Union was also the No. 1 app in Germany, growing nearly 40 percent year-over-year in 2020 to 585K downloads.

● In the U.K., the money transfer app space was characterized by a close competition between Western Union and Wise. In 2020, Western Union saw a significant but short-lived increase in downloads at the beginning of the pandemic, but failed to keep pace with it, while Wise slowly gained grounds and moved to the first spot in Q1 2021.

● The Russian money transfer space was led by KoronaPay. While Russia remained the app’s most important market, it expanded operations to 31 European markets in May 2020. Downloads in these new markets have remained low so far, but with global remittances projected to increase in 20211, the app might intensify its market penetration efforts in the coming months.

1 The World Bank, May 2021

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Make strategic Drive organic growth Develop winning Benchmark app Evaluate which SDKs Access unfiltered decisions with the with the leading App User acquisition usage, engagement, apps are using and mobile user industry’s most Store Optimization campaigns with and demographics. measure SDK engagement for accurate estimates. platform. crucial mobile adoption across financial analysis. advertising insights. market segments.

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