Psychology | The Rise Of Digital Therapy: Revolution Or Scam?
- Phillip Drane
- Apr 4
- 5 min read
Updated: Apr 14
Digital therapy solutions, driven by glitzy social media marketing, have emerged as a prominent feature in the therapeutics landscape, boasting a global market value of $7.4 billion. The meteoric rise of this sector can be attributed to two key factors: the mental health epidemic following COVID-19 and the globally persistent shortfall in affordable and accessible mental healthcare. To illustrate this, it was estimated that in 2021, the post-COVID mental health crisis led to a 200% increase in mental health app downloads.
Digital therapy apps position themselves as services that offer accessibility and innovative solutions for managing mental health challenges, promising convenience, affordability, and personalised care. However, they are increasingly subject to mounting controversies regarding their effectiveness and growing scrutiny of their regulatory oversight.
Digital Therapy Apps: Who Are The Target Demographics?
Mental health apps, unsurprisingly, have a demographic focus on the young and tech-savvy—namely, Gen Z and Millennials. This approach has been highly effective because these age groups are the ones most in need, with a 2021 study showing they experience higher rates of mental disorders than any other demographic.
The current state of the world has done little to improve this reality. Gen Z is under the strain of academic pressure and facing the challenges of entering a job market defined by scarcity and the looming threat of a global recession. Millennials, meanwhile, are grappling with the collapse of home ownership dreams, eroding job security in the wake of AI, and the ever-shifting goalposts of retirement.
As Forbes recently described it, young people are living through a financial stress epidemic, making traditional therapy an unaffordable luxury—yet, for many, still an essential need.
The Key Player In The Digital Therapy Industry & The Controversies Surrounding Them
BetterHelp is undoubtedly dominating the market, with over $1 billion in revenue and more than 1 million people reportedly receiving therapy through the service in 2022. However, despite its popularity, the service has recently faced a raft of criticisms that start with concerns about the credentials of therapists and practitioners on the platform. Media outlets, from the Financial Times to the Daily Mail, have published patient accounts reporting issues such as therapists failing to attend appointments, trying to sell their books, and even going to the toilet during a session while on camera. While not all therapists on the platform have been accused of such behaviour, there have been enough user reports for it to be considered a systemic issue.
Another major concern is how the company has handled patients’ sensitive mental health data in the past. In 2023, the U.S. Federal Trade Commission (FTC) issued a press release outlining a proposed order to ban BetterHelp, Inc. from sharing consumers’ health data—including sensitive details about mental health challenges—for advertising purposes with third parties such as Snapchat and Facebook. The order also proposed that the company pay $7.8 million in compensation to affected consumers.
It remains unclear how this data was specifically used for advertising purposes. However, many campaigners fear that companies may have deliberately exploited mental health disorders—for example, targeting individuals struggling with addiction and overwhelming them with advertisements for alcohol or gambling.
Another issue raised in coverage of the company is its profit-driven motives, with accusations that it prioritises revenue over patient care. Psychologists, due to the pay structure, reportedly feel pressured to take on more clients than they can reasonably manage. This is said to be further exacerbated by a feature of the app allowing clients to message their therapist 24/7—a practice that critics argue stretches professionals too thin and gives users a misleading idea of what therapy entails.
The TLDR: Digital Therapy, Revolution Or A Scam?
Mental health apps represent a significant shift in how people access and manage mental health care. While they offer innovative solutions, it’s crucial to address the many controversies surrounding these services. The current regulatory framework for such platforms is still underdeveloped and is only now starting to catch up, with the Medicines and Healthcare products Regulatory Agency (MHRA) introducing updates in February this year. However, as with all new technologies, it takes time to refine oversight mechanisms, meaning some issues may slip through the cracks in the short term.
With advancements in research and regulation, these apps could significantly improve mental health support—if they’re developed with the user's needs as the priority. After all, there’s a clear difference between the motivations and accountability of a therapist and those of a profit-driven company.
So, do we need to improve access to mental health care? Absolutely. Could properly organised digital therapy play a role? Possibly. But should this be achieved through an Uber-style system? Probably not.
Citations:
Grand View Research. (2025). Mental health apps market size, share & trends analysis report by platform type (Android, iOS), by application type (depression and anxiety management, stress management), by region, and segment forecasts, 2025–2030. https://www.grandviewresearch.com/industry-analysis/mental-health-apps-market-report
> The article uses the Grand View Research report to provide hard data on the market size and growth trends of mental health apps—specifically citing figures like the $7.4 billion valuation and a significant post-COVID download surge—to back up its discussion on the rise of digital therapy.
Evenstad, L. (2021, January 12). Covid-19 has led to a 25% increase in health app downloads, research shows. Computer Weekly. https://www.computerweekly.com/news/252494669/Covid-19-has-led-to-a-25-increase-in-health-app-downloads-research-shows
> The article cites the Computer Weekly source to verify that the Covid-19 pandemic led to a notable surge in health app downloads.
Coe, E., Cordina, J., Enomoto, K., Jacobson, R., Mei, S., & Seshan, N. (2022, January 14). Addressing the unprecedented behavioral-health challenges facing Generation Z. McKinsey & Company. https://www.mckinsey.com/industries/healthcare/our-insights/addressing-the-unprecedented-behavioral-health-challenges-facing-generation-z
> The article cites the McKinsey report to substantiate that Generation Z faces unprecedented behavioral health challenges.
Brigham, T. (2025, February 18). The new money mindset: Gen Z is treating finances like self-care. Forbes. https://www.forbes.com/sites/tessbrigham/2025/02/18/the-new-money-mindset-gen-z-is-treating-finances-like-self-care/
> The article uses the Forbes source to highlight that financial stress is a significant issue for young people, which in turn contributes to their reluctance to pursue traditional therapy.
Lovett, L. (2023, January 9). BetterHelp rakes in $1B in 2022, as Teladoc plans to integrate behavioral health into its chronic care strategy. Behavioral Health Business. https://bhbusiness.com/2023/01/09/betterhelp-rakes-in-1b-in-2022-as-teladoc-plans-to-integrate-behavioral-health-into-its-chronic-care-strategy/
> The article uses the Behavioral Health Business source to provide concrete financial data showing BetterHelp’s dominant market presence by highlighting that it generated over $1 billion in revenue in 2022.
Lardieri, A. (2024, July 29). Therapists on BetterHelp accused of inappropriate behavior and dishing out advice so bad patients quit therapy altogether. Daily Mail. https://www.dailymail.co.uk/health/article-13639815/BetterHelp-accused-therapy-patients-unprofessional.html
> The article cites the Daily Mail source to support its point that BetterHelp has been involved in controversies surrounding unprofessional behavior by its therapists.
Federal Trade Commission. (2023, March 2). FTC to ban BetterHelp from revealing consumers’ data, including sensitive mental health information, to Facebook and others for targeted advertising. https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-ban-betterhelp-revealing-consumers-data-including-sensitive-mental-health-information-facebook
> The article cites the FTC press release to show that BetterHelp faced regulatory action for sharing users’ sensitive mental health data with third parties for advertising, highlighting significant privacy concerns.
Federal Trade Commission. (2024, May 6). BetterHelp customers will begin receiving notices about refunds related to a 2023 privacy settlement with FTC. https://www.ftc.gov/news-events/news/press-releases/2024/05/betterhelp-customers-will-begin-receiving-notices-about-refunds-related-2023-privacy-settlement-ftc
> The article uses the FTC press release to demonstrate that BetterHelp's mishandling of sensitive mental health data led to regulatory action, specifically mandating refund notifications to affected consumers.
Brown, S. (2022, September). The big issue: On the right platform? Therapy Today. https://www.bacp.co.uk/bacp-journals/therapy-today/2022/september/the-big-issue/
> The article references the BACP source to highlight professional concerns about whether digital therapy platforms can deliver effective and ethical care.
Medicines and Healthcare products Regulatory Agency. (2025, February 3). Digital mental health technologies guidance launched to help manufacturers and safeguard users. GOV.UK. https://www.gov.uk/government/news/digital-mental-health-technologies-guidance-launched-to-help-manufacturers-and-safeguard-users
> The article uses the GOV.UK press release to show that new regulatory guidance is being introduced to ensure digital mental health tools are developed safely.
Comments