Over time, social media platforms have evolved and introduced new features. They have gone from being a way for people to connect with friends and family across the globe to a powerful tool for advertising and marketing. Brands have also evolved their use of social media, from sharing slogans to images, to 20-second videos, to hashtags. Social media has also become a platform for startups and small merchants to launch and grow their businesses.
Nowadays, social media is a platform for merchants and freelancers to showcase their products or services. Brands and startups are now hiring social media influencers to promote their products by tagging or adding hashtags to their posts.
One of the most talked-about features is social media payments, where social media platforms are integrating payment gateways with their platforms. This allows users to make purchases directly from social media posts, without having to leave the platform.
What are Social Media Payments?
Social media payments refer to the ability to make payments through social media platforms. In some countries, social media platforms like WhatsApp and WeChat offer peer-to-peer (P2P) payments, while Instagram Shop and Pinterest offer peer-to-business (P2B) payments.
It all started in 2013, when Venmo (which is now owned by PayPal) allowed users to integrate their e-wallet with their Facebook accounts. This integration allowed users to complete transactions through Facebook status updates or messages.
In 2022, both the fintech industry and social media platforms have come a long way in providing ways to showcase products and services and accept payments. For example, Instagram now offers the Instagram Shop feature, which allows merchants and brands to integrate their products with their Instagram (Facebook) profiles.
With Instagram Shop, merchants can advertise and sell products directly to users through the Instagram checkout page. This feature is currently available in the United States with a limited number of merchants. Instagram gives merchants the option to use their own payment platform or integrate with a third-party checkout payment platform.
Similarly, Pinterest offers Product Pins, which are attached to merchants’ products. When you click on a Product Pin, you will be redirected to the merchant’s website or you can purchase the product through hosted checkout, which means you will be directed straight to the merchant’s checkout page.
In addition, some small and local merchants and restaurants are taking orders through WhatsApp and delivering products and services to customers’ homes. They are also sending payment requests through WhatsApp Payments directly to customers.
Social media is constantly evolving and adopting new features. In the near future, in order to keep their active user base, they will need to introduce something new. This could be social media payment integration, which would make it more convenient for users to transfer money, both peer-to-peer (P2P) and peer-to-business (P2B).
Social media payments are the future of online transactions. They are convenient, secure, and easy to use. With social media payments, you can pay for goods and services without leaving your favorite social media platform. Contact us to learn more about how Safexpay can help your business accept payments on social media.
Read our more blogs:
Navigating the Landscape of Payment Solutions in the UAE: A Comprehensive Guide
The Key Features to Look for in a Payment Gateway for Your UAE Business
Choose the Right Payment Platform in UAE for your business success