The concept of super-apps, popularized by Chinese platforms like WeChat and Alipay, promised to revolutionize the way consumers interact with digital services. The idea was to bundle a wide range of services into a single app, creating stickiness with consumers and dominating the market. However, the hype around super apps expanding globally has waned in recent times, with companies shifting their focus to other trends like embedded finance.
Lessons from the success of WeChat and Alipay in China highlight the importance of understanding market dynamics. Unique conditions, such as mobile-first consumer behavior and a lack of legacy infrastructure, played a significant role in their success. Additionally, bundling too many services into one app can create challenges around user experience, brand, regulation, and organizational structure. Companies are realizing that focusing on doing a few things well may be more effective than trying to be a jack of all trades.
The financial industry is constantly evolving, with new trends like embedded finance gaining prominence. This approach involves integrating financial services into various consumer apps and experiences, potentially replacing the need for a single super app. Additionally, the importance of locally tailored solutions cannot be overstated, as what works in one country may not translate to another. Homegrown players with a deep understanding of local conditions are likely to have an advantage over imported super apps.
While the concept of super-apps may not be dead, the challenges associated with building and scaling them are significant. It requires a rare combination of local market insight, long-term focus, deep pockets, and impeccable execution across multiple domains simultaneously. The more realistic view now is that different approaches will succeed in various markets based on their specific dynamics and needs. Super apps will continue to play a role in the digital ecosystem, but they are unlikely to be the universal endgame some had envisioned.
