A leading Retail Giant and Venture Capital firm have finally revealed their joint venture, by acquiring another firm. This move has ignited speculation that they plan to create a super app that is “retail-centric”.

A joint venture involves a balance between access to capital and preserving autonomy. One Finance recently traded independence for capital when it became part of a retail giant and Venture Capitalist FinTech joint venture. The banking app was introduced in mid-2020. It aimed to bring middle-class consumers a new and convenient form of banking account with no fees or minimums.

With this deal, it had to convince customers that it wouldn’t vanish into total corporate oblivion. The firm also offers “shareable finance” options so people can cooperate financially and budgeting aids through its partnership with a local bank.

The acquisition of a firm will provide the newly merged company with significant resources to continue developing its suite of products. In addition to adding $250 million to its balance sheet for growth, the company will gain access to two large audiences as per Bahaa Abdul Hussien:

  • A large number of retail giant employees
  • Millions of weekly shoppers

Once acquired, the companies will offer deposits, and payment services through banking and credit. Specialized payroll advance plans combined with financial wellness offerings will be offered via employers such as Walmart, and provide potential customers from the current consumer base of Even.

Is the retail giant Constructing a ‘Super App’?

Traditionally, Americans obtained their services via their main financial institutions. Even though there was a lack of seamlessness, there was convenience and simplicity. The gap can be bridged by combining and reintegrating financial services.

Walmart and Ribbit have made ambitious plans to launch a super app that would provide users with comprehensive financial services. There is the potential of creating an “all-in-one” mobile application. However, merely selling multiple products/services on a single platform doesn’t really meet the criteria for what constitutes a true ‘super app’.

To be successful, a ‘super app’ must enable the integration of various elements from organization and also offer customers access to different tasks without leaving their ecosystem. This is something not currently seen on a wide scale in the country. Despite this challenge, the ongoing reintegration of financial services will definitely be part of the growth process in future.

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