Finshots Daily Why is every app trying to become a microfinance app?
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Jan 7, 2026 Why are consumer apps pivoting to finance? They offer predictable revenue and foster user retention. Traditional commerce struggles with thin margins, while financial products promise recurring income. Big names like Amazon and WhatsApp are embedding payments and lending, utilizing user data for quick loan decisions. However, this frictionless credit has its risks, potentially leading to fragmented debt and weakened financial discipline. Ultimately, the shift to finance offers apps higher margins and user loyalty.
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Finance Monetizes Scale Better
- Consumer apps moved from chasing distribution to embedding finance because scale alone didn't guarantee profits.
- Finance creates recurring interactions and predictable revenue that commerce often cannot sustain.
Apps Replace Field Agents With Data
- Platforms have rich behavioral data that lets them underwrite small loans without branches or loan officers.
- Apps replicate what microfinance field agents did, using software and transaction signals instead of paperwork.
Credit Deepens Platform Lock-In
- Embedded credit like BNPL reduces friction and keeps users inside a platform's ecosystem.
- Co-branded cards and credit extend platform influence across broader user spending.