By: Shoby Chummar, Founder and Creative Head, MIKADO Digital Design
The global rise of super apps represents a shift in how users interact with digital services, combining multiple functionalities into a single platform. This all-in-one approach has grown significantly, especially in Asian markets, where apps like WeChat and Gojek have set the standard. Now, the interest in super apps is expanding into Western markets, where figures like Elon Musk aim to replicate the model with platforms like X (formerly Twitter).
The rise of super apps in India
Emerging super apps in India, such as Tata Neu, ONDC, and Paytm, are reshaping how users access various services on a single platform. These apps integrate everything from shopping and travel bookings to financial services, mirroring the multifunctionality seen in Chinese super apps like WeChat and Alipay. India’s Open Network for Digital Commerce (ONDC) is especially noteworthy; it leverages cloud and AI technology to create a unified digital marketplace for e-commerce, banking, travel, and beyond.
In this context, the upcoming super app from Indian Railways promises to transform travel for over 20 million daily passengers, unifying services like ticket booking, real-time train tracking, and customer support under one platform. The project, overseen by the Centre for Railway Information Systems (CRIS), will streamline various services to improve passenger convenience and is expected to take about three years to complete with a budget of approximately ₹90 crore.
Security concerns with centralised super apps
With their expansive range of services, centralised super apps naturally collect vast quantities of user data, raising concerns over privacy and data security. While centralised platforms offer convenience, their reliance on extensive, connected databases creates vulnerabilities to cyberattacks and data breaches. The centralised nature of super apps—especially those that combine financial services, social media, and personal data—makes them attractive targets for hackers.
Security experts argue that this model could be better defended if it shifted to a decentralised structure, reducing the chances of widespread data breaches. Furthermore, regulatory frameworks in many countries are still catching up with the capabilities of these platforms, frequently leaving users vulnerable to data misuse. Privacy concerns have pushed for regulations that limit data access and sharing, and a decentralised model might align more closely with regulatory goals by allowing users greater control over their information.
A potential solution to security and privacy challenges
Decentralisation, enabled by blockchain technology, presents a compelling alternative to traditional centralised super apps. By distributing data across multiple nodes rather than storing it in a single, centralised database, a decentralised approach can enhance security and empower users. Through blockchain’s inherent transparency, users can have more visibility into how their data is stored and utilised.
This decentralised model can also help eliminate intermediaries in various service sectors, which is already beginning to disrupt industries traditionally dominated by intermediaries like Ola, Uber, Amazon, Flipkart, and Zomato. In a decentralised super app ecosystem, users could directly connect with service providers for essentials like transportation, delivery, and e-commerce without requiring a centralised platform to manage transactions.
For instance, a decentralised ridesharing service would allow riders and drivers to connect directly, bypassing intermediaries like Uber and Ola and potentially lowering costs by reducing platform fees. Decentralised delivery services could also connect customers directly with local stores and restaurants, creating a more cost-effective and efficient ecosystem without the additional charges associated with centralised platforms like Swiggy or Amazon.
Public utility through decentralised super apps: An economic and social shift
Decentralised super apps could redefine public utility by providing essential services without private platform fees, making them accessible and affordable. This approach would serve the public interest by enabling fairer, community-driven access to essential services. For example, a decentralised grocery delivery service might allow local vendors to reach consumers without relying on platforms like Blinkit or Zepto, potentially lowering costs and supporting local businesses.
As blockchain technology progresses, decentralised finance (DeFi) can also be integrated into super apps, allowing users to manage transactions securely and privately. These decentralised finance capabilities would provide micro-lending, insurance, and other financial services within the app, sidestepping traditional financial institutions and enabling greater financial inclusivity. This development could be especially transformative in emerging markets, where access to financial services is often limited by geographical and economic barriers.
Practical challenges and market readiness for decentralised super apps
Despite the potential, the path to decentralised super apps comes with challenges. Building a secure, decentralised platform requires sophisticated blockchain infrastructure, a high level of trust, and user education. Blockchain technology is still evolving, and decentralised applications (dApps) often face issues with scalability, user adoption, and regulatory scrutiny. For instance, certain countries have strict data privacy laws that could either facilitate or hinder the adoption of decentralised super apps depending on the regulatory stance towards blockchain.
Additionally, the user experience in decentralised applications often lacks the seamlessness of centralised platforms. The need for wallet setups, gas fees (transaction costs), and sometimes slower transaction speeds can deter mainstream users accustomed to the user-friendly interfaces of centralised platforms. Overcoming these barriers will require advancements in user experience and a broader public understanding of the benefits of blockchain technology.
Can decentralised super apps gain ground?
The concept of decentralised super apps could potentially transform how people access digital services by enhancing privacy, reducing costs, and providing essential services directly to the public. By cutting out intermediaries, decentralised super apps empower both service providers and consumers, fostering a more equitable digital economy.
In the near term, traditional super apps are likely to dominate due to their convenience and the familiarity of centralised services. However, as blockchain technology matures and regulatory frameworks evolve, decentralised super apps may gain traction, particularly in regions with high demand for digital services and limited access to centralised infrastructure. The decentralised super app has the potential to redefine the digital landscape, giving users the power to manage their data and services within a transparent, community-driven ecosystem.
