Fintech Banking and the Rise of Super Apps

The relationship between fintech and traditional banks has fundamentally transformed in the past two decades. Simple financial apps and payment system processors built on banking rails have evolved into comprehensive digital ecosystems taking advantage of increasing smartphone penetration, advances of AI in fintech and the increased popularity of crypto currencies, among other factors. This digital transformation in banking has rendered banking itself just one feature among a broader suite of innovative services.

This shift, pioneered by companies like Alipay and WeChat in Asia with their super app development, has later materialised in the United States and Europe, where companies like Revolut, Klarna and X have significantly expanded their core offerings, moving in the super app direction.

Understanding the Super Apps

A super app unifies many functions into a comprehensive digital ecosystem with multiple services integrated together. Coined by Blackberry founder Mike Lazaridis in 2010, the term described a closed ecosystem of apps that offer a seamless, integrated, contextualized and efficient experience. This model has emerged as a response to a growing reluctance to maintain dozens of separate apps for different services.

Recent studies underscore the rapid evolution and adoption of super apps. According to Statista, the number of users engaging with super apps is projected to reach 3.5 billion by the end of this year. Moreover, a report by Straits Research valued the global super apps market at $95.83 billion in 2024, with expectations to rise to $121.94 billion in 2025 and an impressive $838.34 billion by 2033, growing at a CAGR of 27.25% during the forecast period. This explosive growth is further driven by surging smartphone penetration, with global smartphone ownership anticipated to hit 7.5 billion by 2026.

As the rise of super apps accelerates, particularly in fintech, security presents unique challenges. These platforms integrate multiple services handling sensitive financial and personal data in ways traditional banking never needed to address. Unlike conventional banking apps with narrower functionality, super apps must secure diverse features from payment processing to social networking within a single digital ecosystem. This complexity significantly expands the potential attack surface, requiring sophisticated security architectures that protect user data across interconnected services while maintaining seamless functionality. In response, regulators worldwide are developing new frameworks specifically addressing these multi-functional platforms, as traditional financial service regulations may not fully address the hybrid nature of super apps and their complex digital ecosystems.

The Alipay Model

Alipay's evolution from a payment processor to a comprehensive super app illustrates this transformation.

Founded in 2004 as a payment escrow service for Alibaba's e-commerce platform, it has since then evolved into a fintech behemoth. A key development was in 2013 with Alipay's launch of Yu'e Bao, a money market fund that allowed users to earn higher interest rates than traditional bank deposits. Within three years, Yu'e Bao accumulated 810 billion RMB (approx. €112.6 billion) in assets under management from 152 million users - all without operating as a bank.

This success led to rapid service expansion. Beyond its core payment system, Alipay integrated a comprehensive suite of financial services and everyday services - from wealth management and credit scoring to healthcare provider access and government service integration - in a digital ecosystem where users could handle financial and daily activities within a single interface.

Now, with over 1.3 billion users and a a majority market share in China, Alipay has developed into one of the biggest super apps in the world, and what Chinese regulators term an "open platform for digital life", where traditional banking services exist as features within a broader ecosystem.

X Transformation into a Super App

The super app boom is not limited to Asian markets. In the US, X (formerly Twitter) is also moving in that direction as its CEO, Linda Yaccarino, announced plans to launch a payment system called X Money.

The recent announcement of a partnership with Visa to enable the launch of direct payment solutions marks a significant step toward that goal and to Elon Musk's vision to transform the social media platform into an "everything app".

X's approach mirrors the Asian super app model, aiming to adapt it to Western markets. X is expected to integrate P2P payments, creator monetization, and cryptocurrency functionality alongside its existing social media features. However, the path to actually becoming a super app still presents some challenges. X Payments LLC has secured money transmitter licenses in more than 30 US states, though significant regulatory hurdles remain, including approval in New York's crucial financial market.

Regardless of it, X's planned evolution to include X Money, alongside other services like X TV and the AI integration through Grok, demonstrates how platforms are moving beyond their original core functions to create super apps for every need.

The European Super Apps Context

While Europe's regulatory landscape differs from Asia and the US, the trend toward super apps has also emerged in the EU. Revolut, founded in 2015 by Nikolay Storonsky and Vlad Yatsenko as a simple fintech solution with a prepaid card for spending abroad, exemplifies this evolution.

By November 2024, Revolut had expanded to serve 50 million customers globally, obtained a banking license in the UK and integrated a full range of services in its app, from investment and crypto trading to travel bookings and eSIM provision. The company continues to add new features, including "Revpoints", a pan-European loyalty program rewarding customers on their everyday spending, and retail wealth management solutions.

For 2025, they announced plans to further push in the fintech super app direction by adding an AI-powered assistant to help consumers and launching their first mortgage product in Lithuania (followed by Ireland and France).

The Future of Banks in a Super Apps World

As fintech super apps keep developing, the role of traditional banks is shifting. While banks still hold the regulatory keys to financial infrastructure, their influence over consumer financial experiences is waning. In a reality where companies like Revolut, X, and Alipay embed financial services into broader digital ecosystems, the bank as a standalone institution risks becoming a simple behind-the-scenes license supplier rather than a front-facing service provider.

In the years ahead, some banks may decide to compete by building their own super app ecosystems, while others will double down on providing banking as a service (BaaS) solutions to fintechs. But the question is no longer whether fintech super apps will redefine financial services - it’s how banks will fit into this new reality.

If interested in learning more about European super apps join us this April at FIBE in Berlin, where Georg Hauer - former N26 leader and fintech expert - will share his insights on what's next. Don’t miss the chance to be part of the conversation! Learn more here.