What is a Transactional Super App?

Don’t feel bad if you haven’t heard the term before, we’re talking about relatively new lingo here and it’s not entirely a simple explanation either. However, if you are thinking of investing in a new app for your business, knowing about this app format, could put it up there as a contender for your design.

So what is a transactional super app? Simply put, a transactional super app is an app or piece of tech that facilitates financial transactions for a number of consumer focussed services on a large scale. Typically, these transactions are facilitated between the user and a local or national service provider of some kind. The end product or service is not owned or run directly by the app business itself.

OK, we appreciate that sounds a tad mixed up so let’s start small. Uber connects consumers (app users) with taxi drivers and manages the transaction between the parties. There is a built-in rating system, safety measures and easy payment system for its passengers and a transaction recipient service, route planning and geo location support for the driver (service provider).

The app benefits both parties with an enhanced experience and takes a cut of the transaction fee for the service.

You then have a similar but not quite as advanced set up for other digital brands built around apps including Just Eat and Deliveroo from the food industry. Each app allows consumer users to search and order local takeaway food menus for delivery. While we wouldn’t go as far as to call these two apps SUPER in the way we first mentioned, they are great examples of a transactional app and how the process generally shapes up.

Uber has already tried to mix up its offering and is steadily growing a sub brand Uber Eats, which applies its travel based technology to a food delivery system similar to that used by the likes of Just Eat and Deliveroo. Successfully compiling both of these offerings with its existing success would certainly send Uber in the direction of the Transactional Super App status. There are relatively few examples in Europe but in Asia, the rise of these super apps is already well underway.

Singapore cab hailing service Grab has actually pushed Uber out of the region for example. This happened in 2018 and the brand has in essence since taken over Uber’s operations there. The app grew to an astounding 130 million users just months later and quickly added food delivery to its travel services. Since then more advanced financial services have also been rolled out. Grab has now hit $1billion in revenue and secured investment way above that amount to continue its expansion, part of which includes partnering with a well-known Asian healthcare provider. This, ladies and gentlemen is an example of a transactional super app.

Could a transactional super app transform your business model? Contact us to find out how we can help.