Social Media in Payments - Thematic Research

Social Media in Payments - Thematic Research

Summary

This report explores the adoption of ecommerce by social media platforms and the key trends related to social commerce. Case studies illustrate the strategies social media platforms are taking to adopt ecommerce, while the key companies operating in this space are discussed. The report also compares the cost model of ecommerce platforms to social media platforms.

Social media platforms traditionally play the role of communication platforms that enable users to interact with each other in various fashions. Now, social media platforms are expanding beyond this role and are rapidly entering ecommerce, creating new trends such as social commerce and livestream shopping. Social media platforms are still at an early stage in terms of competing with dominant ecommerce platforms such as Amazon and eBay. However, their unique features enable merchants to directly target key users and the platforms are able to take advantage of viral trends to drive product sales.

Scope

• Global mobile commerce accounted for 52.7% of ecommerce in 2021.
• In 2021, Alipay and WeChat Pay accounted for 56.4% of ecommerce transactions in China.
• Social media platforms such as Facebook, Twitter, and TikTok are integrating ecommerce features to generate new revenue streams.

• Understand the advantages and challenges of social commerce.
• Understand the strategy social media platforms are taking to integrate social commerce into their infrastructure.
• Understand which companies are leading in key social commerce trends.