Super-app showdown: Europe risks falling behind as multi-use app popularity continues to surge

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Aug 29, 2023, 09:21 ET

Emerging apps are all-encompassing commerce and communications platforms, and Europe's fintech scene must catch up, says Lanistar

LONDON, Aug. 29, 2023 /PRNewswire/ -- In recent years there has been a surge in the development of mobile applications, known as Super-apps, which offer payment and financial transaction processing for personal and commercial life. Advanced apps such as WeChat, Gojek and Grab have led the charge in providing a platform for everything from messaging and social networking to transportation and food delivery on a single platform.

According to Gartner, by 2027, 50% of the population will be using more than one Super-app, signalling a significant shift in the mobile app industry. Originating in Asia, Super-apps began as messaging apps expanding their services to include other features such as mobile payments, e-commerce, ride-hailing, food delivery, and social networking. Such apps have surged in popularity in Asia due to their simplicity, flexibility and ability to reduce clutter on mobile devices, improving financial organisation.

Jeremy Baber, CEO of Lanistar, said, "The concept of Super-apps stems from a growing demand for convenience and seamless user experiences, offering multiple services in one place to provide a more integrated experience for people. This is particularly useful in a world where there are so many commercial apps and offerings from multiple businesses."

"Despite the popularity of Super-apps in other markets, Europe is behind in the Super-app race. We have seen some household names begin to explore the possibility of diversifying their apps, such as Uber, Klarna and Lydia, but have much further to go to reach Super-app status."

The ongoing shifts in app development have led companies to change their market approach. It is anticipated that Super-apps will provide a new channel for customer acquisition and engagement, leading businesses to reach a broader audience and offering a more seamless experience. Despite the potential benefits for businesses and end users, there is hesitancy.

Regulators in the US and Europe have become increasingly critical of companies developing Super-apps, stating that they heighten the risk of data breaches and store more personal data to facilitate the delivery of their services. Super-apps must also be well-guarded to prevent cyber security breaches. Furthermore, users will lose access to multiple real-life services and digital applications if their accounts are lost.

"As well as navigating potential regulation and security challenges, app creators must also be mindful of their core service - and whether becoming a Super-app will overshadow their existing purpose."

Baber concluded, "Like any emerging technology, product or app, risks often come into play. Super-apps must be built with security in mind and given their vast reach across industries whilst underpinned by financial transactions, regulation is already at the top of the agenda.

"Despite this, the popularity of Super-apps will likely continue to rise. So, UK and European businesses need to hop on the train by either developing their own or partnering with existing providers to offer their services to avoid being left behind in a rapidly evolving market. The UK may be behind in the Super-app race compared to Asian competitors, but we should expect to see the emergence of this new fintech application in coming years."

Notes to editors

About Lanistar

Lanistar was founded in 2019 by entrepreneur Gurhan Kiziloz, whose ambition is to build a fintech unicorn that truly challenges the status quo of old-fashioned, traditional banking services.

Using modern technology and working with industry-leading partners, the Lanistar team is building a platform that provides a total 'AnyMoney' solution for its customers. This will give customers access to all their financial products in one place, from general bank accounts all the way through to cryptocurrency.

Lanistar is not a bank but a payment card provider, operating as an intermediary that offers financial services to end users. Lanistar offers the services of a typical bank account through its banking partner Modulr, but with advanced UI/UX and design to make it easier and more secure than high street banks.

Lanistar Ltd is a registered EMD agent (FRN:902996) of Modulr FS Limited and may distribute and redeem e-money and provide payment services. Modulr FS Limited is authorised by the Financial Conduct Authority ("FCA") under the Electronic Money Regulations 2011 (FRN: 900573) for the issuing of electronic money and to provide payment services. Lanistar Limited ("Lanistar") is currently only carrying our pre-launch marketing in preparation for the future launch of Lanistar branded payment cards ("Cards"). Lanistar is finalising arrangements with various partner firms who are authorised and/or regulated (by the FCA and other overseas regulators) and the Cards will only be launched and go-live when those arrangements are in place.

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SOURCE Lanistar