What is a Super App?
A super app is an ecosystem, a collection of interconnected applications that share an integrated UI, or user interface. This ecosystem is contained within one large application. In addition, some would define super apps to include a digital wallet or loyalty rewards system as a way to provide “stickiness”, or the chance that a user will continue to stay and use the product. Loyalty points or rewards is a creative solution to produce stickiness because it encourages users to engage with the platform and receive positive reinforcement from the system.
But super apps differ from regular apps in several fundamental ways.
Normal apps require regular updates and downloads. The user needs several different apps to meet their needs. Super apps do not require regular simultaneous updates or constant downloads, because the “mini apps” they contain are updated automatically. Less memory and power is needed to run a single super app, compared to a dozen regular applications.
Super apps also provide a more seamless user journey. When a super app bundles several different related services together, the user gets to access these services without jumping to another app, or being redirected to a separate window. Knowing not only what users prefer, but how they would like to get there, is important for creating engaging products that captivate the user and drive engagement.
Why Super Apps Matter to Fintech
Super apps can be about anything, whether they serve a larger audience or a smaller audience. But super apps have been expanding into the world of finance, as a disruption to the marketplace. Super apps are inclined to be fintech in nature, and serve as an important core offering for many fintech companies.
But why does this matter to developers? Building a platform is getting easier with APIs and integrating third party white-label services. In the past, every aspect of the super app had to be built from the ground up. The Rapyd Developer Community is a great place to learn how to integrate Rapyd’s APIs with your platform.
Banking and more traditional financial institutions have been viewed as a “one stop shop” for financial services in the past. With the birth of the consumer digital wallet in the early 2010s, digital financial services have expanded beyond just online banking. The digital wallet simplified purchases for the consumer, providing a simplified way to spend and receive money online. This was a huge boost for people looking to conduct business online.
Super apps within the fintech space have started to become a one-stop shop for the consumer’s financial needs. This places them in competition with banks, which has resulted with several banks partnering with super apps to gain access to the widest user base.
Financial management that is easier and costs less in return for quality services is an important goal for the fintech industry as a whole. When different options are provided, the needs of the user can be met more efficiently.
Global Adoption of Super Apps
The highest rate of adoption for the super app has been in Asia, and Latin America. China is one of the largest adopters of super apps. The top three super apps within the country boast a user base of over a billion people.
Due to different regulatory requirements, super apps best meet the needs of the average user in Asia since there are stricter regulations surrounding software and publishing applications. This provided the opportunity for already established apps to provide additional features and services to an existing core user base.
The adoption of the super app within the West has been slower. There is more competition between individual apps, and a willingness from the public to engage with dozens of independent digital services to meet their daily needs.
Within the United States, there has been an increase in super apps within the fintech and financial space. In the future, the super app may find a place in the West as a cheaper alternative to traditional banking that offers a more flexible and tailored experience for the individual. With the increased use of digital wallets, financial apps may have the opportunity to expand and offer more financial services to their user base.
Future Trends
The proliferation of super apps will increase in the future. Superapps in Asia are experiencing the fastest growth, and provide dozens of consumer services in one place. Within the West, super apps may emerge to fill niche markets or target specific industries to provide a seamless user experience.
Large companies and brands may be the best positioned to create superapps in the US because the user base that these companies have is so large. Brands that are recognizable may be the most likely to build successful super apps.
Super apps can also serve as ecosystems not only for the user, but for the developers as well. Imagine a future when developers can make projects that are always interconnected with others. Such a future is possible with fintech, where a more interconnected world is being created.
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