Social payment is the new means of exchange that can overtake all other payment methods

Social payment is most probably the future of all monetary transactions as we spend an awful amount of time on social medias interacting with friends and keeping up on the latest news (or gossips). We share moments, create memories and keep in touch with friends abroad through the social networks. And it is in those shared moments and intimacy that social payments make its entry, creating an environment where friends can share gifts, transfer money and split bills by the simple click of a button.

Social payment makes life simpler

Social payment makes life easier for sharing and splitting expenses. Be it sending or receiving money, it is the smart association of social media features combined with monetary transactions. Armed only with a smartphone, you can share ticket costs with friends, transfer money to their bank accounts and make online payments, all through a social media app. And the best example of this is, one of the first chatting apps to offer chatting features with monetary exchanges.

Social payment has changed the way we communicate

Since the advent of the internet in the early 1990’s, e-commerce activities have drastically increased. It changed the way people communicate and trade with one another, and opened this vast web of possibilities for businesses to reach potential customers. Consequently, when the first social medias started making their apparition, it was only a matter of time before brands and advertisers seized this opportunity to make business. But it was not business as usual as they had to stay within the parameters of the social medias, letting customers enjoy conversing and sharing with friends whilst making monetary transfers and payment.

It is a practical tool for consumers and businesses

Social payment is a useful tool for both buyers and sellers. On top of being simple, it increases the connection and interaction of consumers with their favorite brands. More importantly for businesses, users of a specific app or those who prefers a particular brand will definitely share with friends and/or relatives. And it is this constant, almost systematic, sharing on social media platforms that most of the time increases brand visibility and drives sales.

The technological revolution is affecting digital payments

With the growing omnipresence of smartphones and the internet around the world, more and more people are becoming interested in social payment methods. In fact, many banking institutions are associating with private companies to facilitate payment services by proposing modern solutions. For example, innovative apps like Moneymailme offers users a combination of chatting and the possibility of transferring money to friends in a fast and secure way. They offer immediate money transfer with a simple tap on their smartphones.

Social payment is shaping the way consumers transact

This simple and yet fast payment method is affecting the way we deal with each other on a daily basis. In urgent situations, you can send or ask money from your loved ones through chatting apps. It can be really helpful when shopping for groceries, clothes or any other item that is valuable to you and your friends. In fact, this new way of transacting helps friends share their shopping experiences with one another, especially if you both have the same social payment app.

Digital payment apps can satisfy the most demanding customer expectations

These modern social payment apps can satisfy almost all your requirements. On top of being a chatting app, it offers instantaneous payment solution to shoppers. With a quick scan of the QR code, you can buy a wide variety of products ranging from electronic devices, shoes to coffee. You can even transfer money to your friend’s account to cover half of lunch or any kind of expenses you want to share with your partner immediately.

Social payments can boost consumption

Indeed, with all the customer’s transaction-data available, sellers can find ways of increasing sales by offering discounts and coupons to clients. It can be a win-win situation, benefiting both consumers and producers. In a way, it can be viewed as a healthy and cost-effective method of driving sales and satisfying customers.

It gives people a chance to contribute to charity

Social payments can make a difference in other people’s lives. You can contribute to charitable causes by a simple click of the button. Moneymailme makes it possible for users to help those in need around the world. They have partnered with GlobalGiving, a charitable organization that helps connect donors around the world for building sustainable projects, to facilitate the process of transferring the money you are donating, to the people who need it.

Social payments have become more secure

Social payments are safer and more secure than most people think. Not only is it less risky, but online transactions are becoming more and more popular. Thanks to the modernization of digital technology, the cyber-security landscape has changed for the better. Most social payment apps have properly secure channels for monetary transactions with stronger authentication protocols. You can conduct payments and transfer money in a hassle-free, knowing that it is safe and fully secure.

Mobile payment apps offer a number of benefits despite privacy worries

More and more people are becoming convinced of the convenience of mobile payment apps compared to the traditional debit cards or cash transactions. However, with most of the apps serving also as social platforms, there may be a risk of privacy issues as unwanted and personal data can be published for others to view.

What exactly are mobile payments?

Mobile payment is the perfect marriage between smartphones and social networks. It is the digital version of the traditional wallet, where transactions are done online via one’s smartphone. In fact, it probably is the future of all monetary transactions as it makes faster and more effective payment possible by a simple tap on your phone’s screen. In terms of convenience, social payment makes life easier for sharing or splitting expenses with peer-to-peer payment (P2P).

The two existing types of mobile payments

payment terminals

The two existing types of mobile payments are online and physical points of sales (POS). Point of sales use Near Field Communication (NFC) technology similar to credit/debit cards. This system integrates your debit or credit cards inside your smartphone for all types of retail payments. And the other type of mobile payment is the ‘cardless ATM’. This method allows for online or on-site purchases through your ‘digital wallet’.

A convenient means of payments for customers

The biggest advantage of mobile payments is that it makes it easier for customers and business owners to conduct financial transactions. Instead of having customers pull out out their credit cards, cash, or write out a check mobile payments support contactless payments via their smartphones.

A good example of mobile payment is Venmo

Venmo is a free mobile payment app that is steadily becoming the favorite of most users. It focuses on making money transfers easier and quicker between individuals using the application. Credit and debit cards need to be linked for consumers to receive or charge friends money. Additionally, it is also possible to store payments in a Venmo account for later use or simply transfer it to your bank account.

Venmo is the combination of a social media and payment app

Compared to other payment applications, Venmo is also a social media app with followers based on your Facebook account or phone contacts. As a matter of fact, your followers or friends can access your payment data, which is automatically shared with them. The app is free from advertisement and charges users for processing costs. As of today, many businesses have started accepting payment through Venmo, making it easier for customers pay.

How comfortable are users sharing their financial transactions?

Since it is also a social network, Venmo makes your financial transactions view-able for friends and followers to see. Although it is a common trend, and beneficial for retailers, to share your shopping adventures, some people may not agree. Just like any other social media, comments and messages may be viewed by your network of followers. Fortunately, by making a few adjustments to the privacy settings of the app, you can choose who is able to view your financial transactions and data.

Is Venmo really secure?

Security has always been a sort of question mark when it comes to the internet. With the growing penetration of internet-based social networks, the risk of hacking is constantly a concern. Venmo has come up with various security barriers to protect consumers from unauthorized transactions. The app is properly secured with data encryption and PIN code for user-only access. You can also deny other devices from accessing your account in case your mobile phone is lost or stolen.

Are there other players in the social payment field?

With Venmo’s success in the social payment field, other players were bound to try their luck. Far from having a negative impact, these mushrooming social payment apps are increasing competition, making it easier for customers to pay with their mobile phone wherever they are. Some of the other apps include Apple Pay, Google Wallet, Amazon Pay, Square Cash and Facebook Messenger.

Financial institutions want a piece of the action

Financial institutions are fighting back with their own payment app. Their answer is Zelle, an easy way for clients to send money to anyone with a US bank account. With a simple email address or mobile phone number, Zelle lets you send and receive money to whoever has an eligible US bank account. As a matter of fact, Zelle also has security barriers like restricting the amount of money sent or received.

Is it the end of ATMs and checks?

Although we are far from abolishing ATMs and checks, mobile payments will play a more influential role in the way we pay for products and services in the future. The reasons why mobile payment will dominate all other forms of payments is that it is easy, simple, fast and secure.