Social media presents both threats and opportunities to banks and other traditional payments players. Social media companies are attempting to increase their revenue sources by moving into payments, putting these companies in potential competition with payment providers. However, through innovative products banks can integrate themselves into the social ecosystem in order to acquire customers.
Discover the strategic implications of social media providers' moves into the payments space for your business.
Learn from the current best practice examples of payment products that integrate into social media or borrow aspects of social media.
Use Verdict Financial's consumer insight to see where the major opportunities in social media lie.
What threat do social media providers pose to the traditional payments market?
How can social media be effectively incorporated into a customer-focused payments strategy?
What do banks need to be doing to compete in this emerging space?
New products need to solve a problem for consumers before they will be adopted. Many of the current social media-based payments services fail to do so.
Chinese consumers are currently the most engaged in social commerce globally due to innovative products (such as WeChat Payment) that are available in the market. Other markets can learn from the services on offer in China.
Banks still enjoy far more consumer trust than social media providers, and they should use this advantage to maintain or grow their position in the market.