SA’s super app a major avo-lution for online purchasing

Not long after Nedbank launched Avo 3.0 – the latest version of its super app with its new Avo Auto offering –  the bank confirmed that one of its users had secured the purchase of a Ferrari California.

Yes, SA has a super app – its very own version of China’s WeChat or America’s Omni – and yes, someone bought a Ferrari on a South African super app.

What is a super app?

A super app, according to agiletech.vn, is essentially a gateway to many services at once. It seems to include outwardly unrelated services, but under a super app umbrella, they create deep connections with each other, making users’ lives much easier.

Super apps were initially developed in Asia to provide a single platform for users to access a wide range of products and services without having to fill their screens with countless icons. The technology is spreading globally as so-called “app fatigue” sets in, with consumers increasingly looking for convenience and high levels of personalisation.

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South African flavoured convenience

This is essentially what Nedbank’s Avo team set out to do – but of course, doing it within a South African context. The bank’s technical teams worked for months on end to bring together as many locally trading merchants as possible including Woolworths, Nando’s, Clicks, Game Liquor and even Exclusive Books, among countless more. They all converge on one platform, allowing users to make multiple purchases from these stores simultaneously –without having to navigate anywhere else.

Currently, the app has around 24 000 merchants and since its launch in June 2020, it has hit 1.7 million users this year.

Super apps and the African digital ecosystem

According to McKinsey, the total Africa digital ecosystems revenues are expected to reach R1.2 trillion by 2025 and growing at 8% per annum.  

At the launch of Avo 3.0, McKinsey’s Umar Bagus explained that there are around 108.6 million cellular mobile connections in the country to date, and 41.19 million of those are internet users. The country currently has 28 million active social media users at present. Around  24.7 million of them purchase consumer goods via the internet. 46.3% of purchases are made on a mobile phone.

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As such, a super app in SA made much sense. But South Africans needed the app to have the  promise of high cybersecurity and innovative payment and finance options. This is where Vishal Maharaj – an Executive for Digital at Nedbank – and his team came in.

Leveraging digital technologies with products relevant to the SA market

 Speaking at the launch, Maharaj said that Avo 3.0 was the outcome of over two years of learning since Avo was launched in June 2020. The team has had to learn what were the immediate needs of South Africans and what they were spending their money on. This included items such a rechargeable lights and takeout food outlets during a common experience amongst South Africans alike – power outages.  

“We have learned a great deal from our customers and business partners, and we have expanded the platform substantially. Avo 3.0 crystallises all of that growth and understanding.

“Avo 3.0 is all about introducing purpose into the mix, making it much easier for users to solve real-life problems: how to access the best power backup solution, for example, or a new car for a university-going child,” he explained.

Avo Auto

The Avo 3.0 version has introduced its Avo Auto offering. It is a market place for car sellers and buyers. Currently, there are 140 vetted dealers on the platform. It will soon launch a Park-and-Sell capability to connect private sellers to private sellers and over 3000 dealerships. It is also set to expand into several SADC countries via its Africa export proposition.

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Maharaj confirmed that in recent times, one of their app users purchased a Ferrari California via the platform. “This is a level of digital trust people expect from their ecommerce apps in this digital age,” he commented.

B2B marketplace

In April 2022, Avo also released a B2B marketplace to complement the established B2C platform.

The B2B offering is designed to help businesses streamline their value chains.

“It offers businesses a way to purchase products easily, with a B2B value proposition that allows companies who already have a business relationship to use the platform to negotiate price, facilitate and track bulk buying and integrate existing procurement practices such as purchase orders,” Maharaj explained.