mayo 23, 2016 11:19 am
As commerce goes mobile and social networks become funnels for payments, the lines between social media, payments and mobile are starting to blur. This trend has led to the emergence of a new type of services that are blending payment capabilities with social networking called “social payment apps“.
A good example of this blend of services is Snapcash, launched in back in November 2014 by Snapchat, which allows US users to send money to friends from within the app. How does it work? You just need to add a debit card for your first transaction, but once you’ve done that you’ll be able to type an amount of money into Snapchat text-chat feature and hit the green pay button to instantly send money. Your friend gets a notice of the transaction and taps to receive the cash. He or she also needs to input a debit card to get the money, and if he does not do so within 24 hours, the money is refunded to you. These peer-to-peer payment transactions are PCI DSS secured at the level of Square‘s eCommerce transactions, so the internet security is the same as online business. However Snapchat limits its Snapcash transactions to personal use only.Video: Snapchat introduces Snapcash
This month, the social media messaging network has gone one step further in its latest effort to monetize its platform, and has launched shoppable e-Commerce ads with Target and L’Oreal Group-owned cosmetics company Lancôme. A swipe down redirected viewers to Target’s mobile site where users could shop items on promotion – water bottles or plant stands for example. Lancome’s ad offered a comparable experience that showcased a new lip gloss called Juicy Shaker as its main product. Users didn’t need to leave the platform to complete their purchase, making the shopping experience ridiculously smooth, easy and…dangerous!
We are starting to see examples of social payment apps in Europe too. Circle, the leading digital payments company which uses the blockchain as a settlement rail, has been in the news recently for launching its app in the UK with the help of Barclays. Available on iOS and Android, Circle will allow UK consumers to send and receive cross border payments with instant conversion between US dollars and pounds with zero fee. Unlike other services, Circle app allows users to send written messages, emojis and animated Gif videos to send with money transfers.