The State of Mobile Payment Apps in Europe — An Analysis of Payment App Market Trends and Top Apps in Europe © 2021 Sensor Tower Inc. - All Rights Reserved 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 Market Overview Europe 5 © 2021 Sensor Tower Inc. - All Rights Reserved 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 Market Overview Europe 6 © 2021 Sensor Tower Inc. - All Rights Reserved 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. Market Overview Europe 7 © 2021 Sensor Tower Inc. - All Rights Reserved 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 Market Overview Europe 8 © 2021 Sensor Tower Inc. - All Rights Reserved 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. Market Overview Europe 9 Digital Payment Apps: Europe — Trends of Digital Payment Apps in Europe © 2021 Sensor Tower Inc. - All Rights Reserved 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 Digital Payment 11 © 2021 Sensor Tower Inc. - All Rights Reserved 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. Digital Payment 12 © 2021 Sensor Tower Inc. - All Rights Reserved 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 Digital Payment 13 © 2021 Sensor Tower Inc.