Social commerce & fintech: opportunities for bringing social commerce beyond the buy button

In this new post by Kohort, we're going to dive deeper into the subject of opportunities in social commerce by looking at the opportunities more specifically at the sweet spot where #socialcommerce meets #fintech.

Social commerce and fintech have both been game-changers in their respective industries, but the combination of the two has the potential to revolutionize the way people buy and sell online. Social commerce refers to the use of social media platforms to buy and sell products or services, while fintech involves the use of technology to improve financial services. Together, social commerce and fintech can offer a seamless and secure buying experience for consumers.

According to a report by eMarketer, social commerce is expected to reach $36.62 billion in the US alone by 2022. This demonstrates the potential for social commerce to grow and become a major player in the e-commerce industry. In addition, a survey by Accenture found that 60% of consumers would be interested in purchasing products directly through social media platforms.

One of the biggest opportunities for social commerce and fintech is the ability to provide a more convenient and streamlined payment process for consumers. With fintech solutions such as mobile wallets and payment gateways, consumers can make purchases directly through social media platforms without the need to navigate to a separate payment page. This reduces the likelihood of cart abandonment and can result in increased sales for businesses.

Moreover, social commerce can benefit from the use of fintech solutions for fraud prevention and secure payment processing. For instance, blockchain technology can provide an immutable ledger of financial transactions, enhancing security and transparency for both buyers and sellers. A survey by PwC found that 24% of retailers are already using blockchain technology for payment processing and supply chain management.

Referral marketing is another area where social commerce and fintech can work together to lower customer acquisition costs and increase sales for businesses. Referral programs incentivize existing customers to refer their friends and family to a business, resulting in lower customer acquisition costs and increased loyalty. With fintech solutions such as digital wallets and payment gateways, referral rewards can be seamlessly and securely distributed to both the referrer and the referred. According to a study by the Wharton School of Business, referred customers have a 16% higher lifetime value than non-referred customers, making referral marketing a valuable strategy for businesses of all type. With social media platforms providing a powerful tool for word-of-mouth marketing, social commerce and fintech can increase the effectiveness of referral programs by making the process more convenient and secure. This is where Kohort steps in: by bringing referrals to payment step, Kohort brings the virality of referrals to the immediacy of payments.?

In conclusion, social commerce and fintech have the potential to bring significant benefits to both consumers and businesses. With the growth of social commerce and the increasing adoption of fintech solutions, we can expect to see more innovative ways of integrating the two. Solutions such as Kohort’s demonstrate how social commerce can go beyond the buy button and offer online shoppers a more seamless, secure, and engaging buying experience.