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How do shady lending apps gain the trust of users?
> “What was the inflow of money?”
> “It should be around Rs. 20 Crs in the last two months.”
> “In addition to your panel, how many panels do you think are across the country?”
> “It should be around 400.”
The above was a conversation between Durg S.P. Abhishek and Mahadev app employee after police raided their office in Chandigarh.
The Mahadev app allows you to bet on live cricket matches. But no app on the play store/app store, no APK, no web app
Just a WhatsApp number.
For starters, one could get access to the app by initiating a conversation with a customer executive on Whatsapp.
Here is how it goes.
I initiated a chat with one of the betting apps (Reddy Anna) WhatsApp numbers to experience the flow first-hand. Below are a few screenshots from the conversation.
The betting apps use the following channels and tactics to gather trust from the users
1. Influencer marketing
2. Celebrity endorsements
3. WhatsApp screenshot testimonials
4. Brand associations
5. Telegram spoofing
1. Influencer marketing:
Regional influencers grab millions of eyeballs every day. But they hardly make money. The betting apps prey on regional influencers to promote their website.
Each of them have around 500K to 1M followers.
2. Celebrity endorsement:
Reddy Anna app has a thriving Insta page. What caught my eye was the insta of their story highlights.
The highlight was a collection of videos from celebrities like Vivek Oberoi, Kajal Agarwal and many more endorsing the website.
3. WhatsApp Screenshot >>> Testimonials
Reddy Anna app uses WhatsApp screenshots to gain trust and authenticity. We have trained our brains to believe that WhatsApp screenshots are authentic and the app capitalists them.
4. Brand associations
The landing page of the Reddy Anna app showcases the logo Paytm, Google Pay, PhonePe & UPI to indicate that the betting money can be transferred through any of these modes.
But the message could be falsely perceived as a brand association.
5. Telegram Spoofing
Reddy Anna app has two Telegram Channels. The primary channel discusses the bets, which have around 36K+ members. But the group is closed, and only select individuals can reply. The feed is filled only with positive messages praising the app.
The channel is a coordinated performance of internal employees to gain the trust of newbies trying to start their betting journey.
The second group is a Reddy Anna screenshot group, where the screenshots of the winnings and withdrawals are shared. This group has 76K+ members.
Once I joined the Telegram channel, I was flooded with DMs from various betting apps asking me if I wanted an I.D
The messages in the primary channel were typed out in different regional languages to have a native connection and all of them were in praise of Reddy Anna. I did some Google translating to gather more context.
As product builders, we optimise reducing steps in the onboarding for the user. Sometimes we are so ingrained in the problem that we only miss the more significant issue of the user's intention to use the app.
The above example is an interesting case study to showcase that when there is high intent to use the app, the users are willing to go to great lengths to access it.
I do not promote online betting, but this is an attempt to understand the psychology behind trust.
These apps have taken the quote, 'Do things that don't scale,' to the next level.
Which of the above tactics used by these apps did surprise you? Let me know in the comments. I was truly surprised by the WhatsApp screenshots used as testimonials.