How FinTech and Social Media Platforms have Partnered Together for Greater Profitability

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.

 

Tailored Ads and Buying now : A Big Week for Ecommerce

ferhan patel twitter birdThis past week has already witnessed a marked uptick in products and services that more accurately target and engage with the consumer on some of their favorite platforms. This year’s Advertising week (based in New York) showcased two new services from tech behemoths Google and Facebook that improve targeted ads and ad ratings metrics, while Twitter and YouTube announced plans to make shopping even easier.

Google revealed a new product that will enable marketers to deliver ad campaigns directly to consumers using their email addresses. This new service launched by Google is called “Customer Match” and is a very targeted approach in determining when and what ad a consumer will see when logged in to Google.

Facebook on the other hand, revealed a new tool that gives advertisers a ratings metric when purchasing video ads. This tool is comparable to what advertisers have used when purchasing commercial time on television. This tool is meant to streamline the planning and purchasing process for advertisers.

It’s no surprise that companies like Google and Facebook are leading the way in refining their processes for identifying and capturing their users. In the same vein, YouTube and Twitter both announced the addition of the “buy button” to their service offerings.

YouTube recently revealed that it would simplify the process of transitioning from ad content to product purchase. With one click, YouTube will direct the user from the video content featuring a particular product directly to the retail site. This means that whether the video is a product review uploaded by a YouTuber or the official ad for the product, the viewer can easily shift into shopping mode.

Similarly, Twitter announced that the company is introducing a new feature for tweets. Going forward, a user will be able to purchase a product featured in a tweet in “as few as two taps – one tap on the buy button and a second to confirm the purchase”, according to reporter Vindu Goel. Twitter announced this week that that it plans to roll out this new “buy now” button, that any US merchant can access if it uses Demandware, Bigcommerce or Shopify.

Although these new features are not yet completely available in all markets, the continued push to incorporate targeted advertising and shopping opportunities to new areas of one’s digital life is not slowing down. In fact, the introduction of these services are most likely indicative of more to come.