Have you ever wondered how it is so simple to buy things online? Or been curious to how you are able to purchase goods on social media?
Social media platforms like Facebook are bringing the marketplace directly to their platforms with new financial technology, or FinTech. FinTech refers to applications or processes providing an end-to-end process only using the Internet.
Facebook for example, uses FinTech applications so it’s users can purchase products without ever leaving their Facebook accounts. Not only are people using Facebook and other social media platforms to sell their products, but this also opens up the opportunity for individual users to sell products as well. FinTech applications that utilize money transfer services can have users transfer money from account to account for the product that they are buying.
FinTech is using social media in many other ways as well. In a report done by Accenture and the Partnership Fund, it was found that as of 2013 nearly $3 billion was invested into FinTech ventures, and that number has surely risen since then.
FinTech can use social media profiles for just about everything. Customer service and marketing are some of the strongest ways FinTech companies are improving their businesses. Social media offers customer service capabilities in real time, and being able to market on these platforms has proven to be vital in the newest trends of marketing.
Social media platforms aren’t just getting used in these scenarios though, they are utilizing this technology to enhance their platforms as well. Some of the most notable social media platforms like Facebook and Twitter have been using FinTech for quite some time.
Facebook, for example, offers a peer-to-peer payment feature, where they can exchange money with friends in the Messenger app. Twitter also broke into the space by offering a page where users can discover and purchase items directly within the platform.
Some of the FinTech applications are becoming social media platforms in themselves. The application Venmo is a mobile payment app that lets users communicate with one another within the app itself. Users can add notes for the reason they are sending or requesting money, and the recipient can communicate back. All of this is open for the public or just your friends to see.
Social media platforms and FinTech companies are both gaining from these partnerships as they are becoming more inclusive for users and easily accessible from one place. Profits for these companies are only going to rise with the partnerships that are in place.