- Toss has continued to build on the Super App strategy and began restructuring UI / UX to strengthen this strategy in August.
- Currently, 43% of Toss’ operating costs consist of remittance fees, and it is expected that the introduction of the bank will mitigate this to some extent.
- Instead of a sales model via commissions, the company seems to be moving to an analytics model via data.
At the end of August, Toss significantly overhauled the app's UI and UX.
In terms of implementation, I found some initiatives the Toss team is working on.
Open Banking, which was fully launched in December 2019, has made all services of individual banks and financial institutions accessible.
Of course, this was not a simple directory assistance service but meant a reduction in the fees fintech providers had to pay the bank per transfer.
With Open Banking, about 90% of the fees were reduced.
Of course, a fee had to be paid, and losses were incurred as the number of customer transfers increased. That’s why Toss limits the number of free transfers for its customers to 10 or fewer.
Like eCommerce operators secure cash through membership, Toss Prime has naturally adopted an unlimited remittance policy.
For comparison, 43% of Toss’s operating costs of KRW 199 billion in 2020 were remittance fees.
For this reason, Toss is introducing Digital Bank Service To, ss Bank, to reduce remittance fees for other banks, according to Toss Securities.
The company can reduce its costs with the current business structure by owning its bank.
For reference, Toss will soon offer banking services as another menu on the Toss Application.
And Toss announced early last month that its wire transfer fees would be free. The basis for all this is Personal Finance Management.
Instead, data aggregation and analysis by Toss now require a new income model.
And to secure much more data and increase Monthly Active Users, the strategy to increase the volume, even more makes sense.
As a reminder, Toss is one of the participants in the “My Data Project” involving the government and financial institutions of South Korea.
If the business is as successful as the Toss team envisions, Toss, seeking a Super App, could continue a Mutually Exclusive, Collectively Exhaustive business.
The recent discontinuation of the Toss Money Card service can also be read as Toss’ intention to close the business, which is not Mutually Exclusive, Collectively Exhaustive -compliant.
Toss’s success is that it is a service that can replace the inconvenience of existing financial services.
As Toss grows, new services will emerge through the gap.