The emergence of super apps is transforming digital interaction, with WeChat leading the way in China. Elon Musk aims to create a similar platform, X, which will introduce money transfer services by year-end. As competition grows, other Asian apps like Grab and Kakao are making strides, while Western platforms struggle to catch up. Musk envisions X managing users’ financial lives, despite challenges in user growth and financial stability, as he faces competition from both social media and innovative tech solutions.
The Rise of Super Apps: A Glimpse into the Future
Imagine a world where sending messages, paying bills, chatting with government agencies, booking taxis, ordering food, and renting bikes can all be accomplished through a single app. While this might seem like a futuristic vision, it has been a reality in China for years. With 1.4 billion users, WeChat has become the quintessential “everything app,” allowing users to navigate the digital landscape seamlessly.
Elon Musk’s Vision for X: A Step Towards an Everything App
Elon Musk has long dreamed of creating a similar super app outside Asia since he took the reins of Twitter over two years ago. Recently, he has made significant strides toward this ambition. The platform, now known as X, is set to unveil its much-anticipated money transfer service by the end of this year. X CEO Linda Yaccarino announced that Visa will be the first financial partner for this initiative.
With X-Money, users will have the ability to transfer money directly to one another using linked debit cards, as well as move funds to their bank accounts. This introduction of in-app payments marks a crucial milestone in Musk’s quest to transform X into a super app. He has often expressed admiration for WeChat, noting its integral role in daily life for many in China. “In China, people basically live on WeChat,” he remarked during a Q&A session with Twitter employees two and a half years ago.
While WeChat remains the most successful super app, the concept is also gaining traction in other Asian countries. For instance, Grab, dubbed an “everyday everything app,” offers transportation, delivery services, and online payments across Southeast Asia. In South Korea, the Kakao platform consolidates chat, taxi orders, delivery, and mapping services into one comprehensive app.
Though Western social media platforms have struggled to replicate this model, there have been attempts, such as Snapchat’s Snapcash, which was discontinued in 2018. Meta has explored e-commerce features through Facebook Marketplace and Instagram, while Mark Zuckerberg recently introduced plans for a shopping and payment system in WhatsApp. However, X-Money aims to go much further by enabling users to link credit cards and manage their own accounts for payments.
Musk’s experience in the payment sector is noteworthy; he previously operated X.com, which eventually became PayPal. Reports suggest that he had envisioned super app-like functionalities for his early ventures, but those plans never materialized. Now, he is determined to realize this vision, albeit facing some delays. In an internal meeting, Musk expressed a desire for X to manage “the entire financial life of a person” by the end of 2024, which would mean a late launch if achieved.
Progress is also being made in other areas to enhance X’s capabilities. Users can now make audio and video calls, and access Musk’s AI model Grok. Job listings are also available, and Yaccarino hinted at 2025 as the year the app would “connect people in ways they never imagined.”
In addition to X-Money and Grok, there are plans for X-TV, a streaming service to rival YouTube. In a recent beta version, users can stream videos uploaded to X directly on their TVs, with monetization options for creators in the works, mirroring YouTube’s revenue model.
Despite Musk’s ambitious plans, he faces significant challenges, particularly in user acquisition. Currently, X has around 650 million accounts, which pales in comparison to the 2 billion users of Instagram and TikTok, and the 3 billion monthly users of Facebook.
Financial hurdles also loom large, as Musk’s $44 billion investment in Twitter has drastically reduced in value. Issues with bots and misinformation have deterred advertisers, leading to stagnation in user growth and revenues. Musk recently acknowledged in a letter to X employees that earnings are “not impressive,” and they are “just about breaking even.”
Moreover, Musk’s competition extends beyond social media platforms; Deutsche Telekom has also introduced its own super app concept, an AI-driven smartphone that eliminates the need for traditional apps. This innovative approach allows users to interact with the AI via voice commands for various tasks, from booking trips to making purchases.
While the battle for dominance among super apps may already be settled in Asia, the competition is just heating up in the West. As Musk and others strive to create the ultimate everything app, the future of digital interaction remains an exciting frontier.