Welcome to CFTE’s Fintech Shot- A newsletter specially made for you to give you the lowdown on the most important Fintech matters.
The final week of Q3 is finally over and it’s time to look at what’s happening in the world of Fintech. One of the biggest developments in the last few days has been PayPal’s decision to become a superhero (or rather Super App) with its mobile app!
What is a Super App?
Super apps are described as mobile applications that have a variety of features and functionalities alongside payment and financial transaction processing.
The first version of PayPal was launched in 1999. It was birthed from the merger between x.com, an online financial services company founded by none other than Elon Musk.
Why does PayPal want to become a Super App?
PayPal as a Super App will increase its usability in daily life to facilitate an individual’s daily transaction while providing additional features that provide value to the user.
Through the integration of cryptocurrency, blockchain, messaging and shopping features, they’ll enable more individuals to buy into their already thriving ecosystem. We’ve seen technology giants like Amazon and Facebook take advantage of Super Apps to improve their platform’s product offering.
“We know that about half of customers in the United States don’t even have a savings account, much less one with a very competitive rate,” notes PayPal SVP of Consumer, Julian King. “So all in all, we think that by bringing together the full set of solutions on the platform, it’s a really competitive offering for an individual.” PayPal is helping underbanked consumers with poor access to competitive financial products, an offering that is both accessible and efficacious.
- PayPal is enhancing its product offering into a Super App to empower users to have access to more innovative products.
- But PayPal’s appetite to become a Super App doesn’t only arise from an identified consumer need, it’s a defense tactic to fend of competitors like Square, Shopify, and Stripe, for the merchant’s relationships.
We hope you liked this article featured in CFTE’s newsletter – The Fintech Shot! Join our mailing list and receive this next week article before anyone else!
Share this newsletter with your friends 😊