Super Apps

In the second decade of this millennium, so much buzz was created by fintech and neo banking. Similarly, in this third decade, the buzz word is super apps. This term has been coined in the last ten years. So far, a customer dealt with separate apps for buying groceries, booking train tickets, booking airline tickets, reserving hotel rooms, availing of home services, buying fast food. Instead, a super app can perform all these functions and make payments too. It could also include a chat box and entertainment. A customer then becomes an appendage to the super app.

It is beneficial to the app provider. A customer is in the super mall and gets all that he needs and wants. Many Indian companies are in the process of developing super app, say the Tatas, Flipkart, Reliance and PayTM. Of course, all these companies will have to commit huge capital to maintain a super app. If not handled properly, it could become messy. The companies have to comply with regulatory provisions too.

Some of the apps, while acting as payment app, could encroach on banking. Of course, some players have already tied-up with banks. The RBI too is relaxing rules to allow apps like PayTM to use NEFT and RTGs to settle transactions. Sure, these apps cannot be allowed to collect deposits, Here too there are grey areas. If they hold a payment bank license, they can hold deposits.

Another issue is about data protection, especially when there is no data protection law. There are Common Service Centres (CSCs) and they hold data in rural areas. Adani group has invested in CSCs.

In healthcare also, super apps may enter. Tata has already acquired 1mg. The government has announced Ayushyaman Bharat Digital Mission. It will hold health data of the population. It is to be seen who gets access to this data.

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