Discover the rise of social commerce
From the emergence of social commerce to the importance of frictionless experiences, discover how fintech is shaping the future of payments. To find out how the payments industry is evolving, we asked Visa’s Anthony Watson to explain more.
Since its inception over 60 years ago, the digital payments industry has developed into a complex ecosystem with hundreds of participants and many more emerging. Innovation and the fintech industry have always gone hand in hand, and this is shown by the industry’s role in transforming payments alongside the global eCommerce boom.
As 2024 gets underway, it’s exciting to see the latest payment innovations coming to the fore, driven by increasingly connected, social and seamless customer experiences.
The rise of social commerce
In what has been coined as the ‘content era’ of commerce, social media is transforming how consumers access and interact with financial services. The lifecycle of a purchase is shorter and more direct, driven by consumers receiving product recommendations directly through user-generated content and making purchases without leaving the social media platform.
In 2022, social commerce accounted for approximately 10% of global eCommerce and this number is projected to reach 17% by 2025. And with 60% of adults having grown up with the internet2, social commerce’s influence is only set to expand further.
Within this new dynamic, social media creators have emerged as critical influencers of purchasing behaviour, exposing consumers to products they didn’t even know they were looking for. This is in contrast to when shopping predominantly took place in physical stores or on a store’s own website, with consumers primarily searching for products they were interested in.
Frictionless and seamless experiences
Changes in purchasing behaviour reinforce how important it is to deliver frictionless and seamless experiences that keep pace with consumer expectations. Embedded finance, which is when financial services are offered inside non-financial platforms and experiences, will be more important than ever to ensure consumers are engaged in the right way and at the right time.
As the number of digitally savvy consumers increases, embedded finance’s role within the payments ecosystem will continue to grow. By 2030, it is projected that 74% of digital consumer payments will be conducted via non-financial platforms. In the Asia Pacific region, embedded finance is expected to unlock USD $242 billion in opportunity by 2025.
Today’s consumers expect easy and convenient access to goods and services via a seamless end-to-end customer experience that is omnichannel, ubiquitous and digital. And as payments continue to be integrated into everyday experiences, this represents a unique opportunity for the industry to drive customer stickiness and loyalty to both brand and platform.
Embracing the opportunity
Social commerce and embedded finance represent a significant opportunity for fintech companies and businesses to innovate so they are meeting consumers where they are.
We believe innovation is a core part of the digital payments landscape which is why the Visa Accelerator Program has returned for its fourth iteration. Designed to help startups unlock their growth potential and to scale across the Asia Pacific region, this is an opportunity for us to collaborate on joint solutions that address the biggest opportunities in digital payments.
With Visa’s payment experts, product architects, and business development teams, eligible startups will have the opportunity to rapidly co-develop, test, and iterate new solutions while pursuing tangible go-to-market opportunities over the course of six months.
Submissions close on 8 March, so join us as we look for the next generation of startups to shape the future of payments together. Learn more here.
By Anthony Watson, Country Manager for Visa New Zealand and South Pacific
Looking for more insights from global thought leaders? Join us at the FinTechNZ Hui Taumata on 27 February in Auckland.