Have you previously heard of the term ‘super app’? Well, the term is not entirely new, but many companies have tried and failed to deliver such an app. A company that did succeed is Tencent through their WeChat multi-purpose application. While it did start as a simple message app, it has emerged as a powerhouse as it allows users in China to order food, taxis, do online shopping and so much more. Basically, a super app offers numerous services that fall under the same umbrella.
According to a recent report from App Annie, while super apps tend to thrive in the Asian-Pacific region, PayPal is looking to make headways in the sector thanks primarily to the sheer volume of people that use their service to make payments around the world. As per their Q1 earnings release, they added 14.5 million net active users, bringing their total to 392 million. To put it in perspective, Netflix has 207.64 million paid subscribers and Disney+ has 103.6 million subscribers. PayPal’s cryptocurrency offering and their buy now, pay later solution were the main contributing factors in increasing total payment volume by 46%.
When it comes to finance apps, PayPal is number two in the USA, behind PayPal-owned Venmo, number four in France, number eight in Canada and at the top of the list in the UK. One of the many reasons the app is so popular on the other side of the pond, is the fact that it has become the preferred choice for making deposits and withdrawals for many patrons at online gambling establishments. Most reputable and regulated online casinos, all new bingo sites and poker rooms offer PayPal’s electronic services. On the downside, their services are not offered in the USA due to gambling regulations.
Another reason why PayPal is in a good position to succeed, where other companies have failed, is the sentiment that it carries amongst its users. During the week of April 26 – May 1, 2021, PayPal had a score of 97, compared to Facebook which only had 64. Leveraging the sentiment can help them penetrate other industries, making PayPal more than just a payment solution.
By adding extra features, PayPal will be able to target a slightly younger generation of users, that might not be using their services at the moment. As per the report, in the US, 76% of PayPal users also use Facebook, 42% use Snapchat, 40% use Instagram and 38% also use TikTok. The statistics are for March 2021, but it clearly shows that there is a huge cross-selling potential waiting to be tapped into.
With consumers spending roughly 4.2 hours a day on their mobile devices for communicating with their friends, sorting out their financial matters and running other daily tasks, PayPal’s hope of releasing their own super app in Q3 of 2021 couldn’t have come at a better time. It can literally turn them from a popular app to a must-have one and compete with the likes of Grab in South-East Asia, KakaoPay in South Korea and probably must contend with another potential super app competitor that comes in the form of Japan’s PayPay.
Either way, PayPal is well-suited and almost certainly the right candidate to offer a super app that will work seamlessly across many industries with no hassle whatsoever.
Featured Image Credit: PayPal