It has been argued that user participation is important when public authorities develop e-services. At the same time there is limited research on the usefulness of existing user participation approaches in public e-service development. In this paper we, therefore, analyze how the three user participation approaches – participatory design, user-centered design, and user innovation – meet the strategic e-service goals of the EU and the US. In doing so, we identify three challenges that need to be considered when choosing among these approaches: 1) unclear user target segments can impede the fulfillment of usability and relevance goals, 2) the nature of participation can impede the fulfillment of democracy goals, and 3) lack of adequate skills can impede the fulfillment of efficiency goals.