Super apps are reshaping how people interact with digital services worldwide. By combining services such as banking, payments, eCommerce, and transportation into a single platform, they offer convenience and efficiency. Originating in Asia with platforms like WeChat, super apps have gained global popularity, spreading further to MEA, Europe, North America, and Latin America.
Latin America presents a unique opportunity for fintechs due to its large, mobile-first population and growing digital economy. According to a recent report by Sensor Tower, Argentina, Brazil, and Mexico are among the top 10 countries where users spend over 5 hours daily on mobile devices.
With nearly 650 million people and two of the world’s largest economies, Brazil and Mexico, the region is positioned for digital transformation. Despite challenges such as financial exclusion and fragmented digital services, super apps provide significant opportunities to address these gaps while driving economic growth.
In our previous blog, “How Super Apps are Shaping Digital Banking and Consumer Experience in Europe,” we explored the rise of super apps, their opportunities, and regulatory landscape. Now, we shift our focus to Latin America – a region with young, digitally active consumers and emerging digital trends.
Why Latin America is Ideal for Super Apps
Latin America’s digital transformation is driven by its evolving consumer needs and growing digital ecosystem. In 2023, 65% of the population in Latin America used mobile internet, with smartphone penetration expected to reach 92% by 2030 (source: GSMA).
Despite a mobile-ready environment, financial exclusion persists as a challenge. Over 100 million people remain unbanked, still relying on cash transactions. Super apps and e-wallets can bridge this gap by providing services like top-ups, payments, and other operations without the need for a bank account. Integrating financial services such as digital wallets and micro-lending is transforming the region’s digital banking landscape.
The potential is huge, with the Latin America super app market expected to grow at 27%, generating USD 36 billion in revenue. This growth underscores the demand for platforms that simplify daily activities while driving financial inclusion.
Key Drivers for Super App Growth
- Younger Generations: Tech-savvy users actively engage with digital tools such as social media, entertainment, and payments. Super apps consolidate these services into one platform, offering convenience.
- The Digital Shift: With the global move towards digitalization, businesses are transitioning their services online. Strong mobile connectivity and increasing demand for mobile-first experiences are driving super app adoption.
- App Fatigue: Managing multiple apps for daily tasks can be overwhelming. Super apps solve this by providing an enhanced user experience and reducing app overload.
- Business Expansion: Companies are evolving by introducing new services to attract and retain customers. Super apps enable businesses to expand their reach, offer users more value-added services, and remain competitive.
- Network Effect: Super apps thrive on the network effect – the more users join the platform, the more valuable the platform becomes. This builds momentum attracts additional services, businesses, and users, driving continuous growth.
The Rise of Super Apps in Latin America
Super apps are becoming increasingly popular in Latin America, making daily activities more convenient and accessible by combining essential services such as ordering a taxi, purchasing groceries, taking public transport, ride-sharing, managing finances, and securing loans into a single platform. These apps meet the growing demand for all-in-one solutions, especially for those looking to save space on their smartphones or those hesitant to install multiple apps, which could risk their digital security.
In Latin American markets, common features include bill payments, investment recommendations, QR payments, money transfers and cryptocurrency trading. The number of fintechs in the region grew from 703 companies to over 3,000 by 2023, with 36% focused on payments and remittances, digital banking and technologies for financial institutions. The predominant business model for almost half of all fintechs is offering B2B solutions, followed by B2B2C and B2C operations.
Several factors are driving the rise of super apps in Latin America:
- Local companies are expanding their offerings to meet regional demand and compete with global players.
- Capital investment in fintech is fueling the growth of integrated platforms, enabling businesses to scale and diversify.
- Increasing mobile phone usage and rapid e-commerce adoption are accelerating digital transformation, positioning Latin America as a market for super app growth.
Super apps play a critical role in financial inclusion. With a significant unbanked population, these apps offer entry-level financial solutions. In addition, evolving regulatory frameworks support digital business models and innovation.
Key Examples Driving Growth
- Rappi: Originally food delivery service, Rappi has expanded to offer payments, P2P transfers, movie tickets across multiple countries.
- Mercado Libre: One of the largest online marketplaces, integrated a range of digital payments and investment tools through Mercado Pago.
- PicPay: A Brazilian digital wallet now includes bill payments, peer-to-peer transfers, and even social features.
- Inter: A digital bank has evolved into a super app, offering services like cashback, investments, and a marketplace.
- Nubank: Known for its digital-first banking model, Nubank is now expanding into other areas like insurance and other services.
- 99: Originally a ride-hailing app in Brazil, 99 has expanded its services to include food delivery and financial services.
- Movile: A Brazilian company with a diverse portfolio, including food delivery, event tickets, courier services, and even a kids' streaming service, operating in Brazil, Mexico, Colombia, and Argentina.
The surge in fintech offering financial services and digital solutions, such as e-wallets and super apps, has become a transformative force, unlocking significant economic potential in Latin America. Super apps offer the convenient consolidation of services into one platform, which helps drive financial inclusion in the region, simplify transactions, expand e-commerce access, and lower remittance costs. As super apps continue to evolve, they will continue to shape the future of digital banking and beyond in the region.
With a mobile first population, rising digital adoption, the region offers opportunities for growth. The question is no longer if super apps will dominate in Latin America, but how quickly they will transform the region's financial landscape and whether the apps will be quick and flexible enough to offer the required functionality.
BPC offers to elevate digital and mobile banking through its next-generation digital platform, allowing the introduction of multi-purpose e-wallets or super-apps with innovative features.
Do you want to learn more about BPC solutions? Contact our experts today.
