The Impact of Multifunctional Apps on Global Digital Identity Landscape
In the evolving realm of digital finance, the rise of super apps has revolutionized the way users transact and perform daily activities. Super apps, such as WeChat and Alipay in China, serve as comprehensive platforms, integrating various services including online and offline payments, loans, bill payments, mobile credits, investments, insurance, ride-hailing, flights, hotels, shopping, social media, and messaging.
By consolidating multiple functions into one platform, super apps significantly reduce the need for users to juggle multiple apps and accounts, enhancing convenience and streamlining user experiences. According to a consumer survey, 87% of users desire seamless experiences from brands, and the average individual manages 150 online accounts requiring passwords and possesses 80 apps on their smartphones, despite using only nine regularly.
Super apps are advantageous for merchants and third-parties, allowing them to save on infrastructure costs for customer acquisition. They can leverage the super app's existing customer base, insights, distribution, and scale to reach wider audiences. popular super apps, such as Grab, Gojek, Paytm, and Careem, are widely used in Southeast Asia, India, Africa, and the Middle East, respectively.
In North America, the financial sector has intensified competition in the development of super apps. Major players like Facebook, Walmart, and PayPal are investing in financial super apps that cater to various financial needs. Meanwhile, traditional banks are also striving to create user-friendly mobile app experiences to attract new customers and set themselves apart from big tech companies and alternative banking options. At present, digital wallets represent the closest form of a financial super app in the United States market.
Growing rapidly due to the COVID-19 pandemic, digital wallets are increasingly becoming a preferred payment method for consumers, with a projected 4.8 billion mobile wallet users worldwide in the next five years. According to a report by CB Insights, digital wallets need to expedite the development of a super app framework to stay competitive in the marketplace.
Super apps' ability to collect vast amounts of consumer data raises serious concerns about data privacy and security. In light of this, implementing robust digital identity solutions is essential for super apps to ensure user data protection and build trust among consumers.
Industry experts regard data privacy and security as significant challenges hindering the widespread adoption of super apps in the West. However, balancing the need for security with user convenience is achievable with the right technology. Mitek offers identity verification solutions that help businesses create secure yet seamless digital ecosystems as they develop the next generation of super apps.
Personal-finance management within these super apps can greatly benefit from implemented technology, streamlining a user's financial transactions and investments. As digital wallets continue to grow in popularity, especially due to the COVID-19 pandemic, fortifying these wallets with a seamless personal-finance feature supported by robust data privacy and security measures, such as those provided by Mitek, will be crucial for their widespread adoption in the Western market.
