Messages, payments and social updates in One Master App

VaselineAugust 13, 2024

0 3 minutes read

Messages, payments and social updates in One Master App

As the founder of a mobile ad startup that was acquired by private equity firm Blackstone in 2019, I’ve watched developments in integrating messaging, payments, social updates, and other features into one core app.

The current global leader in this “one main app rules them all” space is China’s WeChat. WeChat (Weixin for Chinese users) allows users to send text messages, play games, share photos/video conferencing, make mobile payments, etc. It has over 1.3 billion monthly active users, which is good news for parent company Tencent.

US consumers might use Facebook Messenger or WhatsApp for messaging; Facebook, Instagram or X for posting social media updates; and Venmo, PayPal, or other fintech apps for making payments. These are all separate apps that do different things.

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Now imagine if you had an app that did it all.

What’s holding back other all-in-one apps?

Developing an all-in-one application is more of a regulatory challenge than a technical one. But many tech giants are currently aspiring to implement this core app strategy as it could simplify life for many millions of users.

Take Facebook. A few years ago, he had an effort called Diem to create an internal cryptocurrency on Facebook. However, it took so much criticism from regulators and central banks in many countries that it had to abandon its crypto plans and disband its team. Facebook lets you send messages and post updates on social media, and now has features like Meta Pay and payment abilities on Messenger. However, these payment systems still use your credit or debit card or PayPal and aren’t really native to the app itself.

Elon Musk has stated many times that his intention to acquire Twitter and rename it X is to create something like WeChat, an “app for everything” that serves a variety of functions, including payments. Like Facebook, you can currently post social media updates and send messages, but you can’t make payments. X acquired several money transmitter licenses in different states to move forward. Musk was instrumental at PayPal, one of the current payment giants, so he has experience in payments. Again, though, the question is: Will regulators throw up a roadblock to this plan?

PayPal and Venmo are payment apps, but you can’t send messages or post updates on social media, at least the way you can with popular social media and messaging apps.

Another messaging giant that wants to create an all-in-one app is Telegram. It currently has around 900 million users worldwide and recently started allowing users to send USDT stablecoin payments to other users. Telegram has introduced a crypto wallet and token called TON. The SEC halted Telegram’s development, but now The Open Network (TON) is run and owned by a different group of people, and they’ve agreed to work closely with Telegram.

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Big obstacles, but also big potential

Whoever manages to make this mainstream application in the US could see a bright future ahead. Think of all the transaction fees, data mining, and other benefits it could bring to companies that do this. However, it’s probably safe to say that regulators will scrutinize these plans and make them harder to implement.

Personally, I think this master-app-that-does-it-all concept could be very appealing to a lot of people. Many people keep their social networks open all the time, but when they want to send payments, they have to open other apps. From a convenience standpoint, people will want to save time and make payments as easy as submitting a link or creating a post.

The main applications also have potential for investors. Just think of the speed of adoption and the increase in market capitalization of a company that manages to create such an app.

They face big hurdles, but single master applications are an idea whose time has come.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice regarding your specific situation.

VaselineAugust 13, 2024

0 3 minutes read

Vaseline

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