The newest concept gaining interest in the constantly changing digital landscape is the rise of the ‘super-app’ or ‘everything-app’ - as Elon Musk labels it. Whilst this model is not uncommon in Asia, adoption of these apps in the West has been a struggle, due to privacy and security concerns. Musk’s rebranding of Twitter to ‘X’ in 2023 signaled his first step toward attempting to become a dominant player in this space, although he faces some formidable competition from other industry players. But what exactly defines a super-app, and what is X doing to establish itself as a leader in this field?
What is a 'super app'?
A super-app is a platform integrating multiple services into a single interface, eliminating the need for users to switch between various applications. WeChat, or Weixin in China, is one of the first successful examples, combining various services including messaging, social media, e-commerce, payments, transportation and more. Its success is evident – becoming the world’s largest standalone mobile app with over 1 billion active monthly users.
The appeal of the everything-app lies in its convenience and seamless user experience, simplifying daily tasks by saving the time and effort required to move between platforms. Advertisers can also see huge benefits thanks to the detailed and extensive third-party data required for the effective use of the app, allowing for more precise targeting of a vast, multi-regional audience.
Implementation challenges
Despite the success of super-apps in Asia, there are some major issues facing those wanting to replicate this success elsewhere, particularly in Europe and North America.
Data privacy and security concerns are among the biggest barriers to entry in the super-app market. Strict antitrust laws protecting consumers from exploitative monopolistic behavior make it almost impossible for a single app to be the sole provider of all services in the West. Restrictive privacy regulations cause similar issues – making the super-app dream appear increasingly unrealistic.
Consumer preferences also play a major role in determining the success of any platform. Consumers in Asia are long-accustomed to single-app solutions, with the likes of WeChat released almost 15 years ago – more than a lifetime in the digital age. Consumers in the US, in contrast, prefer a wider range of apps, especially when it comes to finances. A great example of this is Snapcash – a peer-to-peer payment service implemented by Snapchat in 2014 – which was discontinued after just four years due in part to the fact it was often used as payment for explicit content.
Another reason companies have struggled to launch an all-in-one app is simply a lack of demand. Thanks to strict marketplace regulations in Asia, sizeable gaps appeared in markets such as infrastructure (for example, limited physical banking facilities and unreliable public transport), which called for a comprehensive solution in the form of a super-app – gaps which are not present in the West. Similarly, the ‘under-powered smartphones’ abundant in Asia, which are unable to manage 40-50 separate apps all at once, create a strong demand for a centralized interface – a demand which is also not present in the West.
Aside from these obstacles, the fast-paced digital landscape and changing consumer behavior around the world could lend itself nicely to the widespread use of super-apps in the future. If this is the case, Musk is determined to be the frontrunner.
How X plans to achieve super-app status
Implementing X money: The global head of marketing at X, Angela Zepeda, has announced that its new payments business, X Money, will launch in the first quarter of 2025, following a new partnership with Visa making it possible for US X Money account users to fund and transfer money in real-time with their debit card. This move is to enable X to compete with other platforms which offer the same service, like Meta’s Meta pay.
New AI-generated ads to win advertisers back: After the mass flight of advertisers following Musk’s takeover, ‘Grok’ – X’s new AI assistant – is part of the platform’s attempt to win them back. Major brands, including Coca-Cola, Apple and Disney, cut spend over Musk’s lax approach to content moderation, and X’s challenge is to convince these advertisers its new features can drive results without concerns around brand safety. X is not the first platform to introduce AI into its systems, however – in fact, it is one of the last – with Google, Meta, TikTok and Amazon already possessing such tools.
Banking on de-regulation and de-moderation: As discussed, data privacy and security concerns are fundamental problems for the creation of the super-app, and with Musk being a strong ally of President Trump, it is possible he could have sway over regulations. Musk’s leadership of the Trump-created Department of Government Efficiency (DOGE) has also been controversial, after his ongoing attempts to dismantle the Consumer Financial Protection Bureau (CFPB) – and at the same time, launch and scale a new payment system (X Money) that would usually be regulated by this organization.
Altering creator monetization program: In November 2024, X changed its creator monetization program to start paying creators based on engagement from premium users as opposed to ad revenue – in a push to increase premium subscriptions. X’s connection to a larger ecosystem differentiates itself from other competitors in this field, as creators will soon be paid through X Money, attracting those interested in making money and managing their earnings all in one app. This is good news for creators, but the new payment structure where compensation is no longer based on ad views, means advertisers have little incentive to return.
Branching out: Aside from finances, the app is looking to differentiate itself from competitors by incorporating other new features, to be revealed in the first campaign since Musk’s takeover. This includes X TV - a version of the platform made for smart TVs, as well as a dedicated video tab for video content in a bid to replicate TikTok’s success. X has also recently debuted the ’NFL portal’, where users can read NFL news and stats, with plans to launch something similar for the NBA – both are attempts to draw back users and advertisers alike following the advertising boycott.
The rise of the super-apps in Asia has transformed the way in which users interact with technology, and Elon Musk is seeking to duplicate this model with X. However, he must confront some major challenges if he wants to be the first to penetrate this market, including fierce competition from Meta, Google, TikTok, Amazon and Reddit – all with similar aspirations. Musk’s close proximity to the levers of power may give him the advantage (although that proximity has undoubtedly contributed to declining sales for Tesla - could X face the same consequences?), but whether X will succeed in becoming the first Western super-app remains to be seen.
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