We’ve talked on and off here about the notion of a super app. That’s loosely defined as an app that helps consumers or businesses do several things. And thus avoiding smartphone screens cluttered with dozens of apps that do just one thing.
Last week we came across a Singapore-based company called HitPay that just raised a $15.7 million A round, led by Tiger Global. Also participating are returning investors Global Founders Capital and HOF Capital.
HitPay calls itself a “one-stop payments platform that empowers SMEs with easy, affordable digital payments.” The app is currently being used by SMBs in Singapore, Malaysia, Hong Kong, Australia, New Zealand, Canada, the US, the UK, Europe, and the UAE.
From what we can gather from looking at it, HitPay aspires to become a financial super app for small businesses. Though the company doesn’t quite say so directly.
From HitPay’s Series A press release.
“With the capital raised, HitPay will continue to build a leading payments infrastructure platform — with unique SME-friendly features including support for local and international payment methods, best-in-class business software, and integrations with accounting and e-commerce platforms.”
The Global Race to Superappdom
There is a race going on around the world to become a regional super app. This is particularly important in emerging markets where data costs are high. Both consumers and SMBs in Asia, Africa, and Latin America are wary of using multiple, data-hungry apps. Any single app that can do the work of several thus has an opportunity to lock in the engagement and loyalty of millions.
The super app race is a bit different in the West. Data costs are less of a concern, and the world is much more app-focused. Plus the gatekeepers of the app world, Google and Apple, are incentivized to discourage the emergence of a super app. After all, that might push sales volume in their app stores in the wrong direction.
A Constellation of Super Apps
There is no single global super app. And perhaps there never will be. Our sense is there will be a constellation of regional super apps. And each one will take the place of perhaps three or four apps on the phone deck.
And there are a few places from which most of these apps will emerge. Logistics (think Uber). Messaging (think WhatsApp). And payments (think Square or PayPal).
It’s relatively logical to build out a super app from any one of these starting points. Just gradually add features that are integrated, giving the app a superior utility and naturally reducing the number of apps the consumer or business owner needs.
The gold standard for super apps is WeChat, the Chinese app that will do everything but tie your shoes. But it is unlikely every market will have something quite so comprehensive.
Uber’s Gradual Transformation
Consider Uber, which has been gradually expanding from ride-hailing to food, grocery, package delivery, and now car rental. It’s becoming a logistics super app.
Uber upped its super app game earlier this year when it announced a new product called Uber Explore. The company describes Explore as “a new product in the Uber app that will allow customers to browse and book experiences – including dinner reservations, live events, and other fun activities.”
We’re probably more likely to evolve into a world where we each have a handful of super apps on our phones. One for finance, perhaps. And others for logistics, social and dating, health and fitness, commerce, and so on. Similarly, small businesses will have a few super-ish apps, each handling multiple, adjacent functions, not unlike what HitPay is trying to do.
This seems a much more likely scenario than a single, all-powerful WeChat-like app running our lives.
