Super Apps and Digital Wallets

Digital wallets go beyond payments and now offer a suite of services

Digital wallets are evolving into integrated platforms of applications to meet the shifting shopping preferences of consumers post-pandemic. With super apps assembling many third-party services through mini apps on their integrated platforms, consumers are not required to download separate apps from third parties on their mobile phones, as the 'instant use and instant drop' capabilities within super apps enable mini apps to appear for purchase and vanish post-purchase, providing a seamless user experience. Super apps and mini apps allow for simple user authentication, such as single sign-on and tracking of user preferences or app usage.

Super apps are among the world’s most successful brands in digital wallets. Alipay and Wechat Pay, for instance, dominate the world’s largest digital wallet market in China. Digital wallet players in Southeast Asia followed suit and embraced the concept of the ‘super app’. For example, Malaysia’s Touch’N Go, initially known for its physical card used for toll payments, launched its e-wallet in 2018, enabling users to make digital payments for tolls, parking, and public transportation. Over the years, the wallet app surpassed its roots in transportation payments to become the most utilized e-wallet brand in Malaysia since 2020

Financial services is the leading application market for super apps in 2023. Financial services and payments account for more than half of the super app landscape, signifying the substantial influence they wield within this ecosystem. By incorporating a swathe of services, including mobile banking, peer-to-peer payments, insurance and investment platforms, the financial super apps have emerged as disruptors to conventional financial institutions. With built-in two-factor authentication and tokenization, digital wallets offer more secure transactions and peace of mind for consumers

Super apps contribute to streamlining the shopping journey

In the retail and commerce space, an omnichannel approach is becoming vital to satisfy consumer choice in the Asia Pacific region, driven by changes in consumers’ shopping journeys post pandemic. Stronger touchpoints and venues in the post-pandemic era, such as ecommerce and social media platforms and live stream channels, can be mostly accessed through super apps and mini apps. An average buying journey today might involve multiple touchpoints—in store, online, at home, across various digital platforms such as social media, apps, websites, automated messaging, and often jumping back and forth to complete a single transaction. Consumers, on average, are purchasing through three or more channels, and joining up their journeys provides a better user-experience, as well as enhanced sales and rewards scheme opportunities

Author

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